VIQ Solutions Posts Fifth Straight Positive Adjusted EBITDA Quarter

Executive Summary

• VIQ Solutions Inc. reported financial results for the three and six months ended June 30, 2025, highlighting continued margin expansion and its fifth consecutive quarter of positive Adjusted EBITDA.
• The company secured its largest SaaS deployment to date in July 2025, implementing its NetScribe® platform across 9 judicial districts and 22 counties in the U.S. Midwest, marking a strategic shift toward higher-margin, subscription-based revenue.
• While revenue decreased year-over-year due to timing of customer volumes, the company demonstrated significant efficiency gains, with Adjusted EBITDA increasing 164% in the first half of 2025 and gross margins expanding to nearly 50%.

Key Details

• Q2 2025 Financials:
  • Revenue: $10.4 million (down 10% from prior year).
  • Gross Margin: 48% (up from 45.5% in prior year).
  • Adjusted EBITDA: $1.0 million (up 24% or $0.2 million from prior year).
  • Adjusted Operating Loss: $0.8 million (compared to $0.6 million loss in prior year).
  • Net Loss: $(899,358).
• H1 2025 Financials:
  • Revenue: $20.0 million (down 7% from prior year).
  • Gross Margin: Nearly 50% (up from 44.9% in prior year).
  • Adjusted EBITDA: $1.8 million (up 164% or $1.1 million from prior year).
  • Adjusted Operating Loss: $1.5 million (an improvement of $0.9 million).
  • Net Loss: $(2,767,740).
• Strategic Highlights:
  • Landmark Deployment: In July 2025, VIQ secured its largest SaaS engagement, implementing NetScribe® across 9 judicial districts and 22 counties in the U.S. Midwest.
  • Technology Integration: The deployment integrates NetScribe®, aiAssist™, and Advanced Formatter, supporting scalability with optional add-ons including domain-specific language models, multilingual support, and automated summarization.
  • Bookings: Secured $1.9 million of new organic bookings in the first half of 2025.
• Balance Sheet & Cash Flow Context:
  • CFO Alexie Edwards noted that the net loss includes approximately $2.0 million in non-cash expenses (depreciation, amortization, and stock-based compensation), with $1.1 million recorded in Q2.
  • The company is focusing on strengthening the balance sheet and reducing debt to expand financial flexibility for reinvestment.
• Conference Call:
  • Scheduled for August 14, 2025, at 11:00 a.m. Eastern time.
  • Participants can dial 1-888-440-4052 (North America) or +1-646-960-0827 (International) using conference ID 4983233.

Notable Quotes

• “In the first half of 2025, VIQ delivered 164% growth in Adjusted EBITDA, expanded gross margins to nearly 50%, and achieved our fifth consecutive quarter of positive EBITDA,” said Alexie Edwards, CFO of VIQ Solutions. “While we reported a net loss, this includes approximately $2.0 million in non-cash expenses... These charges impact earnings per share but do not affect our cash flow.”
• “With our largest SaaS deployment now in motion, increased bookings, and a clear focus on strengthening the balance sheet and reducing debt, we are expanding our financial flexibility to reinvest in growth. Our AI-driven platform and automation strategy continue to fuel stronger margins and sustained EBITDA gains, laying the foundation for long-term growth and value creation.”