Pivotree Announces Second Quarter 2025 Results

Executive Summary

• Pivotree Inc. reported financial results for the three and six months ended June 30, 2025, marking the third consecutive quarter of positive Adjusted EBITDA and the second consecutive quarter of positive Net Income.
• The company achieved a Net Income of $2.5 million for Q2 2025, a significant turnaround from a net loss of $4.4 million in the prior year period, driven by reduced operating expenses from restructuring efforts and a gain on the sale of intangible assets.
• Total revenue declined 14.7% year-over-year to $17.3 million, primarily due to declines in Legacy Managed Services (LMS) and Managed and IP Solutions (MIPS), though Professional Services remained relatively stable.

Key Details

• Net Income: $2.5 million for Q2 2025 (vs. net loss of $4.4 million in Q2 2024); $2.8 million for the six-month period ended June 30, 2025 (vs. net loss of $6.6 million in the prior year period).
• Adjusted EBITDA: $1.7 million for Q2 2025 (vs. $0.3 million in Q2 2024); positive for three consecutive quarters.
• Total Revenue: $17.3 million for Q2 2025, a 14.7% decline from $20.3 million in Q2 2024.
• Revenue Breakdown (Q2 2025):
  • Professional Services: $10.5 million (down 5.0% from $11.1 million in Q2 2024).
  • Managed and IP Solutions (MIPS): $3.7 million (down 7.3% from $4.0 million in Q2 2024), attributed to a peak in SKU transaction volume in the prior year returning to normal levels.
  • Legacy Managed Services (LMS): $3.0 million (down 41.3% from $5.2 million in Q2 2024), driven by churn and melt of Legacy Oracle customers.
• Gross Profit & Margins:
  • Gross profit was $8.0 million with a gross margin of 46.2% (vs. $9.0 million or 44.2% in Q2 2024).
  • Professional service margins were particularly strong, contributing to the overall gross margin improvement.
• Operating Expenses:
  • General and administrative expenses decreased to $1.6 million (from $2.8 million in Q2 2024).
  • Sales and marketing expenses decreased to $2.0 million (from $2.5 million in Q2 2024).
  • Restructuring and other expenses were $0 in Q2 2025 (vs. $1.5 million in Q2 2024).
• Balance Sheet & Cash Flow:
  • Cash and cash equivalents ended at $8.6 million (up from $6.2 million at the end of Q2 2024).
  • Net cash provided by operating activities was $724,448 for Q2 2025 (vs. net cash used of $1.1 million in Q2 2024).
• Business Highlights:
  • Commerce TCV bookings driven by extensions of Professional Services engagements, including Micro Services and Shopify projects.
  • Data team secured four new logos, including a SKU Build proof of concept, Data Cleansing engagement, Data Assessment, and Control Tower Beta.
  • Supply Chain business divested Warehouse Management operations to focus on Order Management; TCV bookings benefited from Sterling OMS and Fluent platform renewals.
• Per Share Data:
  • Basic Loss per Share: $0.10 (Q2 2025) vs. $(0.17) (Q2 2024).
  • Weighted average common shares outstanding: ~26.4 million.

Notable Quotes

• "Effective operating controls and cost containment has Pivotree on a healthy and consistent EBITDA track," said Bill Di Nardo, CEO of Pivotree. "We achieved our third consecutive quarter of positive adjusted EBITDA and second quarter of positive net income, demonstrating sustained operating discipline and a significant step up in PS gross margins to 42%, their highest in over three years."