Wishpond Reports Q2-2025 Financial Results

Executive Summary

• Wishpond Technologies reported Q2 2025 financial results, highlighting a strategic pivot from legacy digital marketing solutions to an AI-enabled platform, specifically its fastest-growing product, SalesCloser AI.
• The company reported a significant decline in revenue and Adjusted EBITDA compared to the prior year period, citing the transition away from lower-margin legacy customers and reduced sales team size.
• Management provided a material update regarding the company's credit facility, noting non-compliance with a covenant and a going concern uncertainty, while outlining a liquidity plan to restore compliance.

Key Details

• Revenue: $3,710,437 for Q2 2025, down from $5,828,709 in Q2 2024.
• Gross Profit: $2,527,282 for Q2 2025, down from $3,942,748 in Q2 2024.
• Gross Margin: 68% for Q2 2025 (unchanged from Q2 2024).
• Adjusted EBITDA: Negative $228,116 for Q2 2025, compared to positive $541,610 in Q2 2024.
• SalesCloser AI Growth:
  • Annual Recurring Revenue (ARR) reached approximately $1.55 million in August 2025, up from $1 million in May 2025 and a five-fold increase since December 2024.
  • Customer base grew to 225 customers in August 2025.
  • Over 5,600 virtual sales agents deployed.
  • Gross margins for SalesCloser are approximately 85%.
• Credit Facility Update:
  • On August 26, 2025, the Company renewed its revolving operating line with the National Bank of Canada with a maximum limit of $5 million.
  • The renewal included a revised borrowing base calculation that reduced borrowing capacity.
  • The Company became non-compliant with an existing covenant at the renewal date.
  • The lender provided a cure period through October 2025.
  • Management is implementing a liquidity plan, which may include strategic asset divestitures or spin-offs.
  • The release explicitly states these conditions represent a "material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern."
• Patent Filing: On August 21, 2025, the Company filed a non-provisional utility patent application for 'Self-Testing in a Virtual AI Representative'. This is the fourth patent filed by the Company.
• Cash Position: Cash at end of period was $606,084 (down from $1,095,708 in Q2 2024).
• Credit Facility Balance: $2,373,397 at end of Q2 2025 (up from $1,242,656 in Q2 2024).
• Outlook: Management expects to return to positive Adjusted EBITDA in the second half of 2025, driven by cost optimization initiatives and the growth of SalesCloser AI.

Notable Quotes

• Ali Tajskandar, Founder and CEO: "Wishpond continues to make meaningful progress in its transformation into an AI-driven company. Our SalesCloser AI platform has emerged as our fastest-growing product and is showing tremendous traction... With gross margins of approximately 85%, we believe this rapid growth validates the scalability of our platform and the strong market demand for AI-driven sales automation."
• Adrian Lim, CFO: "Cash flow from operations was temporarily impacted by a one-time $203,591 timing difference related to the Company's transition to a new payment processing method for contractor payments... More importantly, we are undertaking significant cost optimization initiatives aimed at achieving net positive cash flows and a return to positive Adjusted EBITDA(1) in the second half of 2025."