Pivotree Announces Third Quarter 2025 Results
Executive Summary
- Pivotree reported a profitable third quarter of 2025, generating $0.9 M net income and $1.8 M adjusted EBITDA, reversing a $5.1 M loss from the prior year period.
- Total revenue for Q3 2025 was $15.49 M, down 17.7% YoY, driven by growth in Managed & IP Solutions (up 2.3%) offset by a steep decline in Legacy Managed Services (down 56.7%).
- Gross margin improved to 46.8% of revenue, and cash on hand increased to $11.77 M, reflecting strong operating cash generation ($3.64 M) despite the revenue dip.
Key Details
- Financial Highlights (Q3 2025 vs Q3 2024)
- Net income: $0.937 M vs a loss of $5.085 M.
- Adjusted EBITDA¹: $1.800 M vs $(0.8) M.
- Total revenue: $15.490 M vs $18.817 M (‑17.7%).
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Gross profit: $7.256 M (46.8% margin) vs $7.275 M (38.7% margin).
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Segment Performance
- Managed & IP Solutions (MIPS) revenue: $3.914 M (+2.3% YoY).
- Legacy Managed Services (LMS) revenue: $2.108 M (‑56.7% YoY).
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Professional Services revenue: $9.468 M (‑6.5% YoY).
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Operating Expenses (Q3 2025)
- General & administrative: $2.028 M (‑23.4%).
- Sales & marketing: $2.023 M (‑3.8%).
- R&D: $0.224 M (‑57.1%).
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IT & Operations: $1.587 M (‑41.5%).
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Cash Flow
- Beginning cash: $8.579 M; ending cash: $11.770 M.
- Operating cash provided: $3.636 M (vs a use of $0.267 M YoY).
- Investing cash used: $(0.286) M.
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Financing cash used: $(0.171) M.
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Non‑IFRS Measures
- Adjusted EBITDA¹ defined per company policy; positive for the quarter.
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Total Contract Value (TCV) bookings highlighted strong extensions in Commerce and Supply Chain groups, including multiple seven‑figure integration projects and new logos for Data team.
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Management Commentary
- CEO Bill Di Nardo emphasized “operational discipline” and a transition to consistent EBITDA and cash generation.
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Outlook: Company positioned to capitalize on AI‑driven commerce opportunities.
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Conference Call
- Live Zoom webcast scheduled for Nov 13, 2025 at 8:30 am ET; replay available thereafter.
Notable Quotes
“We've turned Pivotree into a consistent EBITDA and cash producer… our third consecutive quarter of profitability delivering $900k in net income.” – Bill Di Nardo, CEO
Materiality Assessment: Material – Positive (the company achieved profitability and improved margins, representing a significant shift from the prior‑year loss.)