Pivotree earns $4.23-million in 2025

Executive Summary

• Pivotree Inc. reported financial results for the three and twelve months ended December 31, 2025, marking the completion of its turnaround with full-year profitability.
• The company ended 2025 with $6.7 million in Adjusted EBITDA, $4.3 million in Net Income, and a cash balance of $12.8 million.
• The strategic shift continues toward a high-margin, cash-generative model, focusing on AI-enabled automation and outcome-oriented pricing while winding down legacy managed services.

Key Details

• Full Year 2025 Financials:
  • Adjusted EBITDA: $6.7 million.
  • Net Income: $4.3 million.
  • Cash Balance: $12.8 million.
• Fourth Quarter 2025 Financials (CAD):
  • Net Income: $500,000 (compared to a net loss of $200,000 in Q4 2024).
  • Adjusted EBITDA: $1.2 million (compared to $1.7 million in Q4 2024).
  • Total Revenue: $14.9 million (an 18.4% decline from Q4 2024).
  • Gross Margin: 46.0% (yielding $6.8 million in gross profit, compared to 44.0% or $8.0 million in Q4 2024).
• Revenue Breakdown (Q4 2025):
  • Managed and IP Solutions (MIPS): $4.1 million (up 22.2% from Q4 2024), driven by expansion of transactional SKUs.
  • Legacy Managed Services (LMS): $2.1 million (down 52.4% from Q4 2024), due to churn and melt of Legacy Oracle customers.
  • Professional Services: $8.6 million (down 17.0% from Q4 2024), reflecting the completion of certain system integration projects.
• Operational Highlights (Q4 2025):
  • Secured a notable multiyear integration services contract encompassing professional and managed services.
  • Data team secured five new logos, including four in strategic data services, and achieved strong renewals/extensions on Syndigo, Stibo, and Akeneo platforms.
  • Supply chain business expanded Fluent OMS engagements and secured a one-year renewal for a key control tower contract.
• Incentive Plan Awards:
  • Grant of 40,000 stock options to certain executive officers, effective March 25, 2026.
  • Exercise Price: $1.71 per share.
  • Vesting: Over three years from the date of grant.
  • Expiration: 10 years from the date of grant.
• Upcoming Events:
  • Management will host a live video webinar on March 26, 2026, at 8:30 a.m. ET to discuss Q4 2025 results.

Notable Quotes

• "We delivered on our commitment to operational excellence and free cash flow generation while strategically positioning ourselves for the next phase of growth that is supported by a healthy balance sheet," said Bill Di Nardo, chief executive officer of Pivotree. "Pivotree ensures customers have the right product data, in the right format, in the right systems -- increasingly at AI-powered [artificial intelligence] speed and a fraction of traditional cost."