Wishpond Returns to Positive Adjusted EBITDA and Achieves Highest Gross Margins Since 2020
Executive Summary
- Wishpond Technologies posted Q3‑2025 Adjusted EBITDA of $49,012, returning to positive territory despite a revenue decline to $3.38 M.
- Gross margin rose to 71%, the highest level since Q3‑2020, reflecting a shift toward higher‑margin AI products.
- The company disclosed several material post‑quarter events: a non‑binding LOI for a SalesCloser reverse‑takeover (including bridge financing), an LOI to sell Viral Loops assets, extension of senior lender forbearance, and a $200 k shareholder loan.
Key Details
- Financial Highlights – Q3 2025
- Revenue: $3,375,653 (down from $5,055,738 YoY).
- Gross profit: $2,400,784; gross margin: 71% (up from 69%).
- Adjusted EBITDA: $49,012 (positive vs. $(571,228) loss last year).
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Cash at period end: $501,012; credit facility balance: $2,532,640.
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Operating Changes
- Transition from low‑margin email delivery services to AI‑enabled marketing and sales platform (SalesCloser).
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Reduced sales headcount and increased focus on subscription‑based AI products.
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Patent Activity
- Aug 21: Filed utility patent “Self‑Testing in a Virtual AI Representative.”
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Sep 4: Filed three additional patents covering conversational AI workflow builder, adaptive voicemail/IVR detection, and AI‑driven appointment scheduling.
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Financing & Credit
- Aug 26: Renewed revolving operating line with National Bank of Canada – $5 M limit; borrowing base reduced, covenant breach cured by Oct 25, 2025.
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Nov 25: Executed unsecured shareholder loan of $200,000 (interest = prime + 2%) payable on earlier of a $1 M divestiture or 12‑month maturity; subordinated to senior debt.
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Proposed Reverse Takeover (SalesCloser)
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Nov 4: Signed non‑binding LOI with G2M Cap Corp. & 1560320 B.C. Ltd. for a reverse takeover.
- Wishpond would receive 22,750,000 shares of the new public entity at an implied $0.75 per share (~68% ownership).
- Bridge financing: unsecured, non‑interest‑bearing convertible promissory notes converting at $0.60 per share (one‑for‑one exchange) prior to closing.
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Asset Sale Consideration
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Nov 21: Non‑binding LOI for potential sale of Viral Loops assets; subject to due diligence and approvals.
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Lender Forbearance Extension
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Nov 24: Senior lender indicated intent to extend forbearance and covenant cure period to Dec 2026; final terms pending, highlighting a material uncertainty regarding going‑concern status.
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Outlook & Strategic Priorities
- Accelerate organic revenue growth and Monthly Recurring Revenue (MRR).
- Increase internal use of SalesCloser to boost cross‑selling.
- Continue cost discipline, margin improvement, and pursuit of financing or strategic alternatives.
Notable Quotes
- Ali Tajskandar, CEO: “Q3 marked an important step forward in our transition into an AI‑focused company… the proposed SalesCloser spin‑off will allow both businesses to operate with greater focus and access dedicated funding.”
- Adrian Lim, CFO: “Our improved margins, lower cost structure, and ongoing liquidity initiatives provide a stronger financial foundation as we work towards sustained growth and profitability.”