VerticalScope Reports Sequential Growth in ARPU and Free Cash Flow for Q3 2025

Executive Summary

• VerticalScope reported Q3 2025 revenue of $14.7 M (‑17% YoY, +1% sequential) and Adjusted EBITDA of $6.2 M, a 45% sequential increase despite a 16% YoY decline.
• ARPU rose 21% YoY and 9% sequentially, driven by a 40% jump in e‑commerce revenue and stronger direct sales.
• Net loss of $0.4 M ($0.02 per share) contrasted with prior‑year net income of $1.2 M; however, free cash flow improved to $5.9 M (94% conversion).

Key Details

• Revenue: $14,688,198 (‑17% YoY vs. $17,786,704 in Q3 2024)
• Adjusted EBITDA: $6,220,000 (‑16% YoY, +45% sequential from $4,500,000)
• Adjusted EBITDA Margin: 42% (up 12 pp sequentially)
• Free Cash Flow: $5,860,000 (↑56% sequential; conversion 94%)
• Operating Cash Flow: $4,700,000
• Available Liquidity: $68.4 M total ($12.4 M unrestricted cash + $56.0 M undrawn revolver)
• Net Loss: $(421,759) or $(0.02) per share (vs. $1.2 M profit YoY)
• ARPU: ↑21% YoY, ↑9% sequential; e‑commerce revenue up 40% YoY
• MAU: 83 M in Q3 2025, rebounded to >90 M in October 2025
• Key Operational Highlights: Launch of AI‑powered community assistant “Fora Frank”; near‑completion of integration with TollBit’s platform.
• Capital Structure: Long‑term debt $44 M (up from $38 M); revolving loan capacity $56 M undrawn.

Notable Quotes

“Our business took several important steps forward in Q3 to execute on the three main components of our long‑term strategy… AI is unlocking new growth opportunities across our platform…” – Chris Goodridge, CEO
“We delivered a 45% sequential improvement in Adjusted EBITDA … Free Cash Flow conversion rate of 94%… positioning us to capitalize on new growth opportunities.” – Vince Bellissimo, CFO

Materiality Assessment: Material – Neutral** (the release contains full quarterly financial results and operational updates that are material to investors.)