NowVertical Group Reports Second Quarter 2025 Financial Results

Executive Summary

• NowVertical Group Inc. announced its financial results for the second fiscal quarter and first half of 2025 ended June 30, 2025.
• The company reported a 13% year-over-year decrease in Q2 revenue to $8.2 million, driven by planned restructuring in Chile, reseller contract adjustments, and deferred public sector deals.
• Despite the revenue decline, the company achieved positive operating income and significant improvements in adjusted EBITDA year-to-date, with strategic accounts growing 44% year-over-year.

Key Details

• Q2 2025 Revenue: $8.2 million, a 13% decrease from $9.4 million in Q2 2024.
• H1 2025 Revenue: $18.6 million, a 4% increase from $17.9 million in H1 2024.
• Q2 2025 Gross Profit: $3.8 million, a 24% decrease from $5.1 million in Q2 2024.
• H1 2025 Gross Profit: $9.0 million, a 6% decrease from $9.6 million in H1 2024.
• Q2 2025 Administrative Expenses: $3.2 million, a 31% decrease from $4.6 million in Q2 2024.
• H1 2025 Administrative Expenses: $6.8 million, a 26% decrease from $9.3 million in H1 2024.
• Q2 2025 Income from Operations: $0.6 million, a 41% increase from $0.4 million in Q2 2024.
• H1 2025 Income from Operations: $2.1 million, a 622% increase from $0.3 million in H1 2024.
• Q2 2025 Adjusted EBITDA: $1.0 million, a 29% decrease from $1.5 million in Q2 2024.
• H1 2025 Adjusted EBITDA: $3.6 million, a 36% increase from $2.6 million in H1 2024.
• Strategic Account Growth: Strategic accounts grew 44% year-over-year and now represent over 70% of H1 2025 revenue.
• Recent Business Highlights:
  • May 30, 2025: Secured up to $26 million USD in financing with HSBC.
  • July 7, 2025: Announced 2025 Shareholder Meeting Results and Equity Grants.
  • July 25, 2025: Announced attendance at Qlik AI Reality Tour.
• Webinar Details: Management will host an investor webinar on August 28, 2025, at 10:00 AM EDT to discuss results.

Notable Quotes

• “As we close the first half of 2025, NowVertical has taken another meaningful step forward delivering positive operating income and a 36% increase in adjusted EBITDA year-to-date. While Q2 2025 revenue declined 13%, largely due to the planned Chile restructuring, multi-year reseller contract adjustments, and the deferral of certain public sector deals, our strategic accounts grew 44% year-over-year and now represents over 70% of H1 2025 revenue. This shift strengthens the quality and predictability of our revenue mix and underpins our path towards sustainable growth.” — Sandeep Mendiratta, CEO