Victory Square Technologies Reports Q2 2025 Results Highlighted by Revenue Growth, Profitability, and Portfolio Momentum

Executive Summary

• Victory Square Technologies Inc. reported financial results for the second quarter and first half of 2025, showing significant growth in revenue and a return to profitability in Adjusted EBITDA.
• The company provided strategic updates on its three primary portfolio companies: Hydreight Technologies, Insu Therapeutics, and Pawsible Ventures.
• Management announced plans to explore share buybacks to reduce the Net Asset Value (NAV) discount and highlighted upcoming clinical milestones and product launches for its portfolio assets.

Key Details

• Financial Performance (Six Months Ended June 30, 2025):
  • Adjusted Revenue: $13.87 million (up from $10.97 million in H1 2024).
  • Revenue: $9.92 million (up from $7.99 million in H1 2024).
  • Gross Margin: $3.43 million (vs. $3.30 million in H1 2024).
  • Adjusted EBITDA: $463 thousand (compared to a loss of $1.59 million in H1 2024).
• Financial Performance (Quarter Ended June 30, 2025):
  • Adjusted Revenue: $7.35 million (up from $5.92 million in Q2 2024).
  • Revenue: $5.38 million (up from $4.43 million in Q2 2024).
  • Gross Margin: $1.93 million (vs. $1.89 million in Q2 2024).
  • Adjusted EBITDA: $829 thousand (compared to a loss of $1.03 million in Q2 2024).
• Hydreight Technologies (VST Ownership ~58%):
  • Delivered third consecutive quarter of profitability.
  • Achieved 33% Year-over-Year revenue growth in H1 2025.
  • VSDHOne platform processed over 42,000 pharmacy SKU orders in June-July 2025.
  • Launched personalized genetic testing & wellness solutions.
  • Formed an in-house marketing agency subsidiary.
  • Initiated analyst coverage from Maxim Group and Beacon Securities.
  • Secured $10 million convertible debenture financing at a 25% premium to market ($4.06/share conversion) with a forced conversion feature.
• Insu Therapeutics (VST Ownership ~22.8%):
  • Developing patent-pending oral insulin tablet using buccal delivery system.
  • Preclinical trials show insulin uptake comparable to injections with improved liver targeting.
  • Pursuing FDA 505(b)(2) regulatory pathway.
  • First-in-human trials targeted to begin in 2026.
• Pawsible Ventures (VST Ownership ~49%):
  • Focused on pet wellness, telehealth, and AI.
  • Engaged with 25+ early-stage pet health companies.
  • Generating 7,000+ LinkedIn impressions and inbound interest from founders.
  • Fund and incubator program structure to be announced in early fall 2025, including the first cohort of incubated companies.
• Capital Allocation:
  • Company is exploring share buyback strategies to reduce NAV discount.
  • Commitment to monetize non-core assets to reinvest in high-growth portfolio businesses.
• Upcoming Events:
  • Investor Webinar: September 4, 2025, 11:00 p.m. to 12:00 p.m. PDT.
  • Conferences: CEM Muskoka (Sept 26-28), SmallCap Discoveries (Sept 29-30), Planet MicroCap Showcase (Oct 21-23).

Notable Quotes

• "Q2 2025 was another quarter of execution and momentum across our portfolio, highlighted by Hydreight's continued growth and profitability... Looking ahead, we remain focused on scaling our portfolio, pursuing strategic M&A, and unlocking shareholder value — including the potential implementation of a share buyback program." — Shafin Diamond Tejani, CEO of Victory Square
• "As we move into the second half of 2025, our priorities are execution and discipline... We remain committed to exploring strategic options for capital allocation, including potential share buybacks, while monetizing non-core assets to reinvest in the businesses we believe will deliver the strongest long-term shareholder value and help close the gap between NAV and market value." — Shafin Diamond Tejani, CEO of Victory Square