Renoworks Announces Third Quarter 2025 Financial Results

Executive Summary

• Renoworks posted a sixth consecutive quarter of profitability, with net income of C$20,241 for Q3 2025 and C$113,070 YTD, reversing a loss in the comparable period last year.
• Total revenue rose 15% YoY to C$6.02 million for the nine months ended September 30 2025; recurring licensing & hosting revenue jumped 36% YoY to C$2.67 million.
• Adjusted EBITDA increased 296% YoY to C$196,921 YTD, driven by higher gross margins (up to 78% in Q3) and disciplined cost management.

Key Details

• Revenue Highlights
• Nine‑month revenue: C$6,015,564 (+15% vs. C$5,210,091 FY 2024).
• Q3 2025 revenue: C$2,002,749 (+6% vs. Q3 2024).
• Recurring licensing & hosting revenue (YTD): C$2,672,998 (+36%).

• Recurring licensing & hosting revenue (Q3): C$911,989 (+38%).

• Profitability Metrics

• Gross margin YTD: 76% (up from 74%); Q3 gross margin: 78% (vs. 74% prior year).
• Adjusted EBITDA YTD: C$196,921 vs. C$49,793 FY 2024.
• Adjusted EBITDA Q3: C$52,563 vs. C$125,395 Q3 2024 (decline due to higher expenses).
• Net income YTD: C$113,070 vs. a loss of C$2,333 in FY 2024.

• Net income Q3: C$20,241 vs. C$110,364 loss in Q3 2024.

• Balance Sheet & Liquidity

• Cash balance (Sept 30 2025): C$1,548,953 (flat YoY).
• Working capital positive at C$275,658; excluding deferred revenue, net working capital = C$2,440,210.
• Deferred revenue: C$2,386,726 (down slightly from C$2,519,797 Dec 31 2024).

• Shares outstanding: 40,817,968 (up from 40,664,635).

• Operational Trends

• Licensing & hosting now constitute the majority of growth; design services revenue declined 6% YoY as part of strategic shift.
• Customer concentration improved – largest customer’s share fell from 36% YTD 2024 to 32% YTD 2025 and 28% in Q3 2025.

• Launched eight new enterprise visualizers; 15 more slated for Q1 2026.

• Management Commentary (CEO Doug Vickerson)

• Emphasized the “strength of our strategic shift toward scalable, recurring revenue.”
• Highlighted AI‑driven solutions driving higher gross margins and predictable cash flows.

• Forecast continued ARR growth from new contractor onboarding and enterprise account expansion.

• Outlook

• Management expects ongoing revenue acceleration from AI‑powered licensing & hosting despite anticipated design‑services decline.
• Focus remains on margin improvement, recurring‑revenue expansion, and AI platform enhancements across Enterprise and Pro segments.

Notable Quotes

“These results highlight the strength of our strategic shift toward scalable, recurring revenue,” – Doug Vickerson, CEO, Renoworks.

All figures are presented in Canadian dollars unless otherwise noted.