POSaBIT Reports First Quarter 2025 Financial Results
Q1 Adjusted Gross Profit increase year over year of 9.4%
Q1 Adjusted EBITDA increase year over year of 93.5%
Continued strong growth in Q1 with Point of Sale and eCommerce growing 16%
“As highlighted during our recent annual earnings call,
Hamlin added, “Our Point of Sale system continues to lead the industry, and Q1 marked our busiest quarter ever for POS sales and implementations. We also saw stronger-than-expected demand for our newer eCommerce and Menu products, with momentum expected to continue into Q2. While overall revenue was down slightly due to our ongoing payment processing migration, our adjusted gross profit margin of 65% was the highest in the company’s 10-year history. We’re encouraged by the progress we've made. We have executed our cost reduction plans, remain profitable and cash flow positive, and have a focused leadership team driving toward a bright future.”
Recent Operational Highlights
-
The Point of Sale product continues to experience significant growth, particularly in
Washington State , driven by its dependable recurring revenue model - Adjusted Revenue, Adjusted Gross Profit, and Adjusted EBITDA remained steady quarter over quarter, with this consistency expected to continue through 2025
- The Company finalized the settlement of its last outstanding legal matter, paving the way for reduced legal expenses for the remainder of 2025.
- The Company completed migration of several cost generating activities to our payments partner resulting in additional costs savings in 2025 and beyond
Balance Sheet
As of
|
Financial Results |
|||||||||||||||
|
NM - Not Meaningful |
|||||||||||||||
| in US Dollars |
Summary of Quarterly Results |
||||||||||||||
|
|
1st Quarter 2025 |
4th Quarter 2024 |
3rd Quarter 2024 |
2nd Quarter 2024 |
1st Quarter 2024 |
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Revenues |
$ |
2,842,703 |
|
$ |
3,150,199 |
|
$ |
4,082,537 |
|
$ |
4,264,005 |
|
$ |
3,777,105 |
|
|
Gross margin |
$ |
1,515,553 |
|
$ |
1,692,227 |
|
$ |
1,631,891 |
|
$ |
2,190,607 |
|
$ |
1,489,804 |
|
|
Total operating expenses |
$ |
(2,641,559 |
) |
$ |
(2,549,792 |
) |
$ |
(3,374,492 |
) |
$ |
(2,829,634 |
) |
$ |
(3,421,903 |
) |
|
Other (expenses) income |
$ |
1,990 |
|
$ |
(392,987 |
) |
$ |
(341,341 |
) |
$ |
185,066 |
|
$ |
(8,045 |
) |
|
Net earnings (loss) prior to income taxes |
$ |
(1,124,016 |
) |
$ |
(1,250,552 |
) |
$ |
(2,083,942 |
) |
$ |
(453,961 |
) |
$ |
(1,940,144 |
) |
|
Net earnings (loss) |
$ |
(1,121,030 |
) |
$ |
(1,238,312 |
) |
$ |
(2,083,942 |
) |
$ |
(453,961 |
) |
$ |
(1,940,144 |
) |
The following table reconciles Revenue, as reported to Adjusted Revenue for
|
in US Dollars |
|
|
|
||||
|
Revenue as reported |
$ |
2,842,703 |
|
$ |
3,704,713 |
|
|
|
Add: Cash receipts from licensing contracts |
$ |
1,350,000 |
|
$ |
1,162,500 |
|
|
|
Deduct: Licensing support revenue |
$ |
(386,250 |
) |
$ |
(386,250 |
) |
|
|
Adjusted Revenue |
$ |
3,806,453 |
|
$ |
4,480,963 |
|
|
The following table reconciles Gross Margin, as reported to Adjusted Gross Profit for
|
i n US Dollars |
|
|
|||||
|
Gross Margin as reported |
$ |
1,515,553 |
|
$ |
1,489,804 |
|
|
|
Add: Cash Receipts from Licensing contracts |
$ |
1,350,000 |
|
$ |
1,162,500 |
|
|
|
Deduct: Licensing Support Revenue as reported |
$ |
(386,250 |
) |
$ |
(386,250 |
) |
|
|
Adjusted Gross Profit |
$ |
2,479,303 |
|
$ |
2,266,054 |
|
|
|
Adjusted Gross Profit Margin |
|
65 |
% |
|
51 |
% |
|
The following table reconciles Loss, as reported to Adjusted EBITDA for
| in US Dollars |
|
|
|||||
|
EBITDA |
$ |
(833,301 |
) |
$ |
(1,207,238 |
) |
|
|
Deduct: Licensing support revenue, as reported |
$ |
(386,250 |
) |
$ |
(386,250 |
) |
|
|
Deduct: Licensing revenue interest income, as reported |
$ |
(174,416 |
) |
$ |
(249,272 |
) |
|
|
Add: Cash receipts from licensing agreement, as reported |
$ |
1,350,000 |
|
$ |
1,162,500 |
|
|
|
Adjusted EBITDA |
$ |
(43,967 |
) |
$ |
(680,260 |
) |
|
Conference Call Information
Date:
Time:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 181006
Webcast URL: https://www.webcaster4.com/Webcast/Page/2708/52562
Conference Call Replay Information:
The replay will be available approximately 1 hour after the completion of the live event.
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 52562
Webcast Replay URL: https://www.webcaster4.com/Webcast/Page/2708/52562
Financial Reports
Full details of the financial and operating results are described in the Company’s consolidated financial statements for the three months ended
Non-IFRS Measures
Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT’s licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold, and Adjusted Gross Profit Margin as a percentage of Adjusted Gross Profit as compared to Adjusted Revenue. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted in accordance with the reconciliation table set out in this press release. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action.
Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding annual cost reductions; our expectations regarding Adjusted Revenue, Adjusted Gross Profit, and Adjusted EBITDA over 2025; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions; the ability to manage our operating expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and pricing for our products; our relationships with our customers, distributors and business partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’ needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain technological leadership; our ability to manage risks inherent in foreign operations; the impact of technology changes on our products and industry; our failure to develop new and innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel.
Important factors that could cause actual results to differ materially from POSaBIT’s expectations include consumer sentiment towards POSaBIT’s products, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual obligations.
Neither we nor any of our representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust or otherwise resulting from the use of the information in this news release or for omissions from the information in this news release.
ABOUT
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250530739038/en/
Investor Relations:
investors@posabit.com
Media Relations:
855-767-2248
hello@posabit.com
Management:
Co-founder and CEO of
855-767-2248
investors@posabit.com
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