Renoworks Software earns $20,241 in Q3

Executive Summary

• Renoworks Software Inc. reported financial results for the three and nine months ended September 30, 2025, highlighting a strategic shift toward scalable, recurring revenue through AI-driven SaaS solutions.
• The company achieved its sixth consecutive quarter of profitability, with total revenue for the nine-month period increasing 15% year-over-year to $6.02 million.
• Recurring licensing and hosting revenue surged 36% year-over-year, while the company improved its gross margin to 76% and reported positive working capital excluding deferred revenue.

Key Details

• Nine-Month Period (YTD 2025) Highlights:
  • Total Revenue: $6,015,564 (up 15% from $5,210,091 in YTD 2024).
  • Recurring Licensing and Hosting Revenue: $2,672,998 (up 36% from $1,961,850 in YTD 2024).
  • Libraries Revenue: $703,756 (up 41% from $498,537 in YTD 2024).
  • Gross Margin: Improved to 76% (from 74% in YTD 2024).
  • Adjusted EBITDA: $196,921 (up from $49,793 in YTD 2024).
  • Net Income: $113,070 (compared to a net loss of $2,333 in YTD 2024).
  • Deferred Revenue: $2,386,726 at Sept 30, 2025 (vs. $2,519,797 at Dec 31, 2024).
  • Working Capital: Positive $275,658 at Sept 30, 2025 (vs. deficit of $121,451 at Dec 31, 2024); excluding deferred revenue, working capital was positive $2,440,210.
  • Cash Balance: $1,548,953 at Sept 30, 2025 (flat from $1,536,671 at year-end 2024).
  • Shares Outstanding: 40,817,968 common shares at Sept 30, 2025 (vs. 40,664,635 at Dec 31, 2024).
• Three-Month Period (Q3 2025) Highlights:
  • Revenue: $2,002,749 (up 6% from $1,894,911 in Q3 2024).
  • Recurring Licensing and Hosting Revenue: $911,989 (up 38% from $662,321 in Q3 2024).
  • Gross Margin: 78% (vs. 74% in Q3 2024).
  • Net Income: $20,241 (vs. $110,364 in Q3 2024).
  • Adjusted EBITDA: $52,563 (vs. $125,395 in Q3 2024).
• Operational Metrics:
  • Customer Concentration: Revenue from the largest customer decreased from 36% (YTD 2024) to 32% (YTD 2025) and 28% (Q3 2025).
  • Design Services Revenue: Declined 6% year-over-year, consistent with strategic reduction of transactional services.
  • Enterprise Visualizers: Launched eight new enterprise visualizers for leading North American manufacturers and distributors; 15 more scheduled by end of Q1 2026.

Notable Quotes

• "These results highlight the strength of our strategic shift toward scalable, recurring revenue," said Doug Vickerson, chief executive officer of Renoworks. "Licensing and hosting revenue grew by 36 per cent year over year as more of our enterprise customers adopt AI-driven [artificial intelligence] solutions, replacing one-time design services with ongoing SaaS [software-as-a-service] licensing. This transition is improving both our gross margins and the predictability of our revenue streams."