Pivotree earns $937,518 in Q3

Executive Summary

• Pivotree Inc. reported a return to profitability for the third quarter of 2025, posting a net income of $900,000 compared to a net loss of $5.1 million in the prior-year period.
• The company achieved an Adjusted EBITDA of $1.8 million, a significant improvement from a negative $800,000 in Q3 2024, driven by improved gross margins and operational restructuring.
• Total revenue declined 17.7% year-over-year to $15.5 million, primarily due to a sharp 56.7% drop in Legacy Managed Services (LMS) revenue, which was partially offset by growth in Managed and IP Solutions (MIPS) and strong professional services margins.

Key Details

• Net Income: $900,000 for Q3 2025, compared to a net loss of $5.1 million in Q3 2024.
• Adjusted EBITDA: $1.8 million for Q3 2025, compared to negative $800,000 in Q3 2024.
• Total Revenue: $15.5 million for Q3 2025, representing a 17.7% decline from Q3 2024.
• Managed and IP Solutions (MIPS) Revenue: $3.9 million, an increase of 2.3% from $3.8 million in Q3 2024. Growth was driven by double-digit growth in SKU Build, offsetting declines in application support.
• Legacy Managed Services (LMS) Revenue: $2.1 million, a decrease of 56.7% from $4.9 million in Q3 2024, attributed to churn and melt of Legacy Oracle customers.
• Professional Services Revenue: $9.5 million, a decrease of 6.5% from the prior year, containing new customer projects that partially offset completed projects from the prior year.
• Gross Margin: Improved to 46.8% of total revenue (yielding $7.3 million in gross profit), compared to 38.7% ($7.3 million) in Q3 2024. Professional service margins were particularly strong.
• Business Highlights:
  • Commerce group secured multiple seven-figure extensions for integration projects and smaller extensions across VTEX and microservices engagements.
  • Data team secured six new logos, including key implementations of Stibo and Akeneo, and two new logos for SKU Build proof of concepts.
  • Supply chain business recorded its best quarter of Total Contract Value (TCV) bookings in fiscal 2025, driven by large extensions for Order Management System (OMS) professional services.
• Conference Call: Management will host a live video webinar on Wednesday, Nov. 13, 2025, at 8:30 a.m. ET.

Notable Quotes

• "We've turned Pivotree into a consistent EBITDA [earnings before interest, taxes, depreciation and amortization] and cash producer, with our third consecutive quarter of profitability delivering $900,000 in net income," said Bill Di Nardo, chief executive officer of Pivotree. "Our operational discipline and client-focused execution have established the solid foundation we needed. Now, as we navigate the rapidly evolving AI [artificial intelligence] and commerce technology landscape, we are well positioned to capitalize on the growth opportunities ahead."