RIWI Releases Q2 2025 Financials

Executive Summary

• RIWI Corp. reported financial results for the three and six months ended June 30, 2025, showing a significant increase in revenue but also an increase in net losses compared to the prior year period.
• The Company initiated a Cost Savings Plan in August 2025 aimed at streamlining sales and operations, expected to yield approximately $600,000 in annual savings starting in Q3 2025.
• Subsequent to the quarter, RIWI secured a $1,000,000 CAD working capital loan from insider Pathfinder Asset Management Limited, including a share bonus component, subject to TSXV approval.

Key Details

• Q2 2025 Revenue: Reported $1,495,370 USD, a 45.7% increase from $1,026,112 USD in Q2 2024.
  • Transaction Revenue: $868,718 USD
  • Recurring Revenue: $387,103 USD
  • Project-based Revenue: $239,549 USD
• Trailing Revenue: Twelve-month trailing revenue reached a record $6,039,778 USD as of quarter-end.
• Profitability Metrics (Q2 2025):
  • Net Loss: $336,380 USD (compared to net loss of $108,826 USD in Q2 2024).
  • Operating Loss: $291,248 USD (compared to operating loss of $96,269 USD in Q2 2024).
• Six-Month Results (Ended June 30, 2025):
  • Total Revenues: $3,063,640 USD (up from $2,161,959 USD in 2024).
  • Net Loss: $682,145 USD (compared to net loss of $81,739 USD in 2024).
  • Basic and Diluted Net Loss Per Share: $0.04 USD.
• Cost Savings Plan:
  • Initiated in early August 2025.
  • Includes headcount reductions, technology consolidations, and salary reductions for higher-paid employees (including C-suite).
  • Expected annual savings: ~$600,000.
  • Financial impact begins Q3 2025, with full impact expected in Q4 2025.
• Customer Activity: Signed 32 customer contracts in Q2 2025, including 9 new customers.
• Product Enhancements:
  • Launched a self-service sample portal for consumer-based samples.
  • Released RIWI synthetic AI data generator for privacy-preserving, statistically robust data access.
• Subsequent Financing (Post-Q2 2025):
  • Secured a $1,000,000 CAD working capital loan from Pathfinder Asset Management Limited (insider, >10% shareholder).
  • Terms: 2-year term, 12% per annum interest, interest payable semi-annually, principal due at end of term.
  • Loan Bonus: 400,000 common shares issued to Lender (valued at $200,000, deemed price $0.50/share).
  • Use of Proceeds: Working capital management, general corporate purposes, and growth.
  • Status: Subject to TSX Venture Exchange approval.
• Balance Sheet Highlights (As of June 30, 2025):
  • Cash: $387,691 USD (down from $1,845,224 USD at Dec 31, 2024).
  • Total Assets: $4,377,257 USD.
  • Total Liabilities: $2,956,568 USD.
  • Shareholders' Equity: $1,420,689 USD.

Notable Quotes

• "With record 12-month trailing revenue, disciplined cost actions, expanding customer adoption, and targeted product enhancements, RIWI is positioning for sustained growth with improving operating efficiency," said Greg Wong, Chief Executive Officer of RIWI.