Earnings
Pivotree Announces Fourth Quarter 2025 Results
PVT · Price
Executive Summary
- Pivotree reported its first full‑year profitability, posting Adjusted EBITDA of C$6.7 M, Net Income of C$4.3 M and a cash balance of C$12.8 M as of 31 Dec 2025.
- Q4 2025 revenue declined 18.4% YoY to C$14.9 M; Managed & IP Solutions (MIPS) revenue grew 22.2% YoY to C$4.1 M, while Legacy Managed Services fell 52.4% YoY.
- The company secured a multi‑year integration services contract and added several new data‑service logos, indicating momentum in its AI‑enabled service model.
Key Details
- Full‑Year Financial Highlights (FY 2025 vs FY 2024)
- Adjusted EBITDA: C$6.7 M (vs. loss previous year) – Material Positive.
- Net Income: C$4.3 M (vs. net loss of C$11.9 M).
- Cash & cash equivalents: C$12.8 M (up from C$3.9 M).
- Q4 2025 Financial Highlights
- Revenue: C$14,876,555 (‑18.4% YoY).
- Gross margin: 46.0% of revenue; gross profit C$6,842,532.
- Net income: C$527,982 (vs. loss of C$214,392 prior year).
- Adjusted EBITDA Q4: C$1.2 M (down from C$1.7 M YoY).
- Segment Performance
- MIPS revenue: C$4.147 M (+22.2% YoY).
- Legacy Managed Services (LMS) revenue: C$2.134 M (‑52.4% YoY).
- Professional Services revenue: C$8.595 M (‑17.0% YoY).
- Operating Expenses (Q4) – G&A C$1.817 M, Sales & Marketing C$2.088 M, R&D C$221,571, IT & Operations C$1.333 M.
- Cash Flow
- Operating cash provided: C$1.679 M (vs. outflow of C$1.195 M YoY).
- Investing cash used: C$(404,778).
- Financing cash used: C$(237,092).
- Net increase in cash: C$989,353; ending cash C$12,759,400.
- Strategic Wins
- Multi‑year integration services contract covering Professional and Managed Services.
- Five new data‑service logos (four strategic data services wins).
- Renewals/extensions with Shopify, VTEX, SAP, Syndigo, Stibo, Akeneo.
- Supply Chain: expanded Fluent OMS engagements; renewed a key Control Tower contract.
- Incentive Plan Awards – Grant of 40,000 stock options at $1.71 exercise price to executives (vest over 3 years, expire in 10 years).
- Conference Call – Live Zoom webcast scheduled for Thursday, 26 Mar 2026, 8:30 am ET; replay available thereafter.
Notable Quotes
“We delivered on our commitment to operational excellence and free cash flow generation while strategically positioning ourselves for the next phase of growth…” – Bill Di Nardo, CEO
All amounts are in Canadian dollars unless otherwise noted.
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