Plurilock Security Inc. Reports Second Quarter Fiscal 2025 Financial Results

Executive Summary

• Plurilock Security Inc. announced its financial results for the three and six months ended June 30, 2025, reporting a significant increase in total revenue driven by growth in professional services and software licensing.
• The company reported a 159% year-over-year increase in Critical Services revenue and a 42% improvement in Adjusted EBITDA loss compared to the prior year period, although gross margins decreased due to a one-time, lower-margin resale order.
• Management highlighted strong operational momentum, including new federal contracts, strategic partnerships, and expansion into NATO-aligned markets, while maintaining a stable balance sheet with sufficient liquidity.

Key Details

• Total Revenue: $16,404,963 for the three months ended June 30, 2025 (up from $14,305,546 in 2024); $35,445,577 for the six months ended June 30, 2025 (up from $27,140,854 in 2024).
• Revenue Breakdown (Three Months):
  • Hardware and systems sales: $1,350,705 (8.2% of total).
  • Software, license, and maintenance sales: $10,785,841 (65.7% of total).
  • Professional services: $4,268,417 (26.0% of total).
• Revenue Breakdown (Six Months):
  • Hardware and systems sales: $4,070,937 (11.5% of total).
  • Software, license, and maintenance sales: $23,367,659 (65.9% of total).
  • Professional services: $8,006,981 (22.6% of total).
• Gross Margin: 12.0% for the three months ended June 30, 2025 (down from 14.7% in 2024); 12.1% for the six months ended June 30, 2025 (down from 14.4% in 2024).
• Adjusted EBITDA: $(1,400,359) for the three months ended June 30, 2025 (improvement of 42% vs. $(2,422,291) in 2024); $(2,675,180) for the six months ended June 30, 2025 (vs. $(1,643,193) in 2024).
• Net Loss: $(2,230,829) for the three months ended June 30, 2025 (vs. $(3,733,983) in 2024); $(5,243,192) for the six months ended June 30, 2025 (vs. $(5,536,232) in 2024).
• Loss Per Share: $(0.03) basic and diluted for the three months ended June 30, 2025 (vs. $(0.10) in 2024); $(0.07) for the six months ended June 30, 2025 (vs. $(0.27) in 2024).
• Cash Position: Cash and cash equivalents were $1,719,643 and restricted cash was $20,000 as of June 30, 2025. The Company has $8,547,804 in unused credit facilities.
• Cash Flow: Generated $47,795 from operating activities in Q2 2025 (vs. $1,552,516 in Q2 2024); used $5,087,345 in operating activities for the six months ended June 30, 2025 (vs. $1,973,631 use in 2024).
• Operational Highlights & Recent Contracts:
  • April 2, 2025: $5.9 Million in new contracts across Federal and Public Sector Clients.
  • June 5, 2025: $1.3M in new Critical Services contracts across U.S. Commercial Clients.
  • June 26, 2025: $2.54 Million CAD sale to a NASDAQ-listed enterprise for AI Cybersecurity.
  • July 10, 2025: Named Certified Services Partner for Forcepoint.
• Outlook: Company reiterates 2025 growth strategy focused on higher-margin Critical Services, expanding into NATO, Middle East, and non-U.S. defense markets, and improving working capital management through shorter customer payment terms and tighter contractor payments.

Notable Quotes

• "In Q2, we continued to grow our Critical Services business," said Ian L. Paterson, CEO of Plurilock. "While a one-time, lower-margin resale order impacted overall margins this quarter, our strategy of margin expansion, led by Critical Services, remains strong."
• "Recent meetings with top cybersecurity leaders and officials in Ottawa, Brussels, and at Black Hat reinforce our credibility and underscore the unprecedented levels of allied government investment in cyber and defense, areas where Plurilock is uniquely positioned to capture a meaningful share."