Adcore loses $448,000 in Q3

Executive Summary

• Adcore Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, highlighting a transition period with mixed regional performance.
• Total revenue decreased by 2% year-over-year to $7.6 million, driven by a significant decline in North America, partially offset by growth in EMEA and APAC regions.
• The company reported a decline in gross profit and adjusted EBITDA, though management cited efficiency gains in R&D and SG&A expenses, alongside a strengthened balance sheet with increased cash reserves.

Key Details

• Revenue: $7.6 million for the three months ended Sept. 30, 2025, compared to $7.8 million in the same period of 2024 (a 2% decrease).
• Gross Profit: $3.1 million for the three months ended Sept. 30, 2025, compared to $3.7 million in the prior year period (a 16% decrease).
• Gross Margin: 40% for the three months ended Sept. 30, 2025, compared to 47% in the prior year period.
• Adjusted EBITDA: $122,000 for the three months ended Sept. 30, 2025, compared to $282,000 in the prior year period.
• Regional Revenue Breakdown (Q3 2025 vs Q3 2024):
  • North America: $1.1 million (50% decrease from $2.1 million).
  • EMEA: $3.0 million (25% increase from $2.4 million).
  • APAC: $3.5 million (7% increase from $3.3 million).
• Operational Metrics:
  • R&D expenses decreased by 10% year-over-year.
  • SG&A expenses decreased by 12% in the quarter.
  • Cash and cash equivalents grew by 8% year-over-year.
  • Working capital was $5.85 million as of Sept. 30, 2025, compared to $7.3 million as of Dec. 31, 2024.
• Product Updates: Substantial progress made with Proposaly.io, advancing automation and client portal capabilities; new marketing website launched.
• Conference Call: Scheduled for Thursday, Nov. 13, 2025, at 10 a.m. ET.

Notable Quotes

• "While our third quarter top-line results reflect a period of transition, I'm encouraged by the underlying strength of our operations and the solid progress we've made this year across our key regions and initiatives." — Omri Brill, CEO and Founder
• "Our EMEA business grew 25 per cent year over year and APAC revenue increased 7 per cent in the quarter and 37 per cent year to date, confirming the positive momentum of our international footprint." — Omri Brill
• "We also strengthened our balance sheet, growing cash and cash equivalents by 8 per cent year over year, which provides the financial flexibility to keep investing in innovation and profitable growth." — Omri Brill