Core Insights - AvidXchange and IOFM's report highlights the evolving challenges faced by accounts payable (AP) professionals, emphasizing the role of automation and AI in addressing these issues and enhancing career prospects [1][4][11] Workforce Concerns - Nearly half (45%) of AP professionals express concerns about potential layoffs in 2025, a significant increase from 27% in 2024 [2] - Only 50% of AP professionals report having access to growth or skills development opportunities, and just 40% believe they have a clear path for career advancement [3] - In 2024, 61% of AP professionals left more than a quarter of their paid time off (PTO) unused, with 27% citing job security concerns [3] Economic Sentiment - AvidXchange's 2025 Economic Sentiment Survey indicates that 86% of finance professionals are worried about the economy, with nearly half expecting a recession within the next 12 months [4] - AP professionals are focusing on skill building and automation to enhance productivity and secure their futures amid economic uncertainty [4][5] Automation and AI Impact - Automation is seen as a key driver for improving job performance and long-term career prospects, allowing AP teams to focus on strategic, higher-value work [6] - 59% of AP professionals in automated environments report being "extremely satisfied" in their roles, compared to only 2% in fully manual environments [7] - 74% believe access to tools and technology supports their career growth, while 69% think automation will have an immediate positive impact on their current roles [9] Job Security and Flexibility - 53% of AP professionals are taking on stretch assignments to enhance job security, a rise from 34% the previous year [8] - 40% state that flexible work hours are essential, with automation enabling this flexibility by reducing reliance on paper-based processes [10] Resilience Strategy - AP automation is not just about efficiency; it is a strategy for workforce stability, helping professionals maintain productivity and morale during economic challenges [11] - Organizations adopting automation and AI are likely to cultivate a more empowered and future-ready workforce [11] Case Study - An AvidXchange customer noted that automation significantly reduced the need for manual data entry, allowing the AP team to focus on higher-value tasks and facilitating growth within the accounts payable function [12]

Group 1 - The proposed sale of AvidXchange Holdings, Inc. to TPG Inc. involves shareholders receiving $10.00 in cash for each share they own [1] - Kahn Swick & Foti, LLC is investigating whether the proposed transaction adequately values AvidXchange and the process leading to this valuation [1] - The investigation is led by former Louisiana Attorney General Charles C. Foti, Jr. and aims to assess the fairness of the transaction for shareholders [1][2] Group 2 - Kahn Swick & Foti, LLC is open to discussions regarding legal rights related to the proposed sale, providing contact information for inquiries [2] - The law firm emphasizes that there is no obligation or cost for shareholders to reach out regarding their concerns about the transaction [2]

New Partnership Enhances Payment Innovation for Faith-Based and Nonprofit Organizations CHARLOTTE, N.C. and KNOXVILLE, Tenn., Aug. 07, 2025 (GLOBE NEWSWIRE) -- AvidXchange, Inc. a leading provider in accounts payable (AP) automation, offering intelligent AP software and payment solutions for mid-market businesses and their suppliers, today announced an exclusive partnership with Ministry Brands, a leading provider of church management software and online giving tools. Together, the two companies will offer ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited interim financial statements, management's analysis of financial condition and operations, market risk disclosures, and evaluation of internal controls [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements of AvidXchange Holdings, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, revenue recognition, financial instruments, and other relevant financial information [Unaudited Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity as of specific dates Unaudited Consolidated Balance Sheets | Metric | As of June 30, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :--------------------------------- | :---------------------------------- | :----------------------------------- | | **Assets** | | | | Cash and cash equivalents | $335,773 | $355,637 | | Restricted funds held for customers| $1,148,195 | $1,250,346 | | Marketable securities | $71,461 | $33,663 | | Total assets | $2,003,835 | $2,089,711 | | **Liabilities & Stockholders' Equity** | | | | Payment service obligations | $1,148,195 | $1,250,346 | | Total liabilities | $1,316,285 | $1,417,878 | | Total stockholders' equity | $687,550 | $671,833 | | Total liabilities and stockholders' equity | $2,003,835 | $2,089,711 | - Total assets decreased from **$2,089,711 thousand** at December 31, 2024, to **$2,003,835 thousand** at June 30, 2025, primarily due to a decrease in restricted funds held for customers and cash and cash equivalents[6](index=6&type=chunk) [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, expenses, and net income or loss over specific periods, reflecting operational performance Unaudited Consolidated Statements of Operations | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $110,570 | $105,132 | $218,512 | $210,730 | | Cost of revenues | $30,949 | $30,426 | $61,738 | $60,759 | | Loss from operations | $(12,411) | $(2,101) | $(20,768) | $(6,210) | | Net (loss) income | $(9,464) | $436 | $(16,775) | $(573) | | Basic EPS | $(0.05) | $0.00 | $(0.08) | $0.00 | | Diluted EPS | $(0.05) | $0.00 | $(0.08) | $0.00 | - The company reported a net loss of **$9,464 thousand** for the three months ended June 30, 2025, compared to a net income of **$436 thousand** in the prior year period[9](index=9&type=chunk) - For the six months ended June 30, 2025, the net loss was **$16,775 thousand**, an increase from **$573 thousand** in the same period of 2024[9](index=9&type=chunk) - Revenues increased by **5.2%** for the three months ended June 30, 2025, to **$110,570 thousand** from **$105,132 thousand** in the prior year[9](index=9&type=chunk) - Revenues increased by **3.7%** for the six months ended June 30, 2025, to **$218,512 thousand** from **$210,730 thousand**[9](index=9&type=chunk) [Unaudited Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section details the changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit Unaudited Consolidated Statements of Changes in Stockholders' Equity | Metric (in thousands) | As of December 31, 2024 | As of June 30, 2025 | | :-------------------- | :---------------------- | :------------------ | | Common Stock | $204 | $208 |\ | Additional Paid-in Capital | $1,685,644 | $1,718,132 | | Accumulated Deficit | $(1,014,015) | $(1,030,790) | | Total Stockholders' Equity | $671,833 | $687,550 | - Total stockholders' equity increased from **$671,833 thousand** at December 31, 2024, to **$687,550 thousand** at June 30, 2025, primarily due to increases in additional paid-in capital from stock-based compensation and stock issuances, partially offset by net losses[12](index=12&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods Unaudited Consolidated Statements of Cash Flows | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $30,606 | $18,928 | | Net cash used in investing activities | $(53,001) | $(56,279) | | Net cash used in financing activities | $(99,620) | $(379,651) | | Net decrease in cash, cash equivalents, and restricted funds held for customers | $(122,015) | $(417,002) | - Net cash provided by operating activities increased to **$30,606 thousand** for the six months ended June 30, 2025, from **$18,928 thousand** in the prior year, driven by changes in working capital[14](index=14&type=chunk) - Net cash used in financing activities significantly decreased to **$99,620 thousand** in 2025 from **$379,651 thousand** in 2024, primarily due to variations in payment service obligations and common stock issuances[14](index=14&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements of AvidXchange Holdings, Inc. for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, revenue recognition, financial instruments, and other relevant financial information [1. Formation and Business of the Company](index=7&type=section&id=1.%20Formation%20and%20Business%20of%20the%20Company) This section outlines the company's establishment, its core business activities, and significant corporate events like the proposed merger - AvidXchange Holdings, Inc. was formed in July 2021 through a reorganization, becoming the parent company of AvidXchange, Inc[16](index=16&type=chunk)[17](index=17&type=chunk) - On May 6, 2025, the Company entered into a Merger Agreement to be acquired by Arrow Borrower 2025, Inc. (affiliated with TPG Global, LLC and Corpay, Inc.), which is expected to close in Q4 2025, resulting in the Company becoming privately held and delisted from Nasdaq[18](index=18&type=chunk) - AvidXchange provides accounts payable (AP) automation software and payment solutions for middle market businesses across North America in various industries[19](index=19&type=chunk) [2. Summary of Significant Accounting Policies](index=7&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section describes the key accounting principles and methods used in preparing the financial statements, including revenue recognition and fair value measurements - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP and SEC rules for interim reporting, reflecting management's estimates and assumptions[20](index=20&type=chunk)[22](index=22&type=chunk) - In connection with the proposed Merger, the Company incurred approximately **$6,450 thousand** and **$8,590 thousand** in transaction-related expenses for the three and six months ended June 30, 2025, respectively, reported in general and administrative expense[24](index=24&type=chunk) - A substantial portion of the Company's revenue is derived from interchange fees on virtual commercial card (VCC) transactions, with significant concentration from two service providers (**27%** and **18%** of total revenue for Q2 2025)[26](index=26&type=chunk) - The Company has largely transitioned to a money transmitter license model for payment transmission, recognizing restricted funds held for customers as an asset and corresponding payment service obligations as a liability on the balance sheet[37](index=37&type=chunk) - New accounting pronouncements, ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Expense Disaggregation), are being assessed for their impact on future financial statements, with effective dates in 2025 and 2026/2027 respectively[44](index=44&type=chunk)[45](index=45&type=chunk) [3. Revenue from Contracts with Customers](index=14&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) This section details the company's revenue streams, categorized by software, payment, and services, and provides information on remaining performance obligations Revenue from Contracts with Customers | Revenue Type (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Software revenue | $32,927 | $29,914 | $63,865 | $59,602 | | Payment revenue | $76,681 | $74,183 | $152,621 | $149,385 | | Services revenue | $962 | $1,035 | $2,026 | $1,743 | | Total revenues | $110,570 | $105,132 | $218,512 | $210,730 | - Software revenue increased by **10.1%** for the three months ended June 30, 2025, and by **7.1%** for the six months ended June 30, 2025, compared to the prior year periods[47](index=47&type=chunk) - Payment revenue increased by **3.4%** for the three months ended June 30, 2025, and by **2.2%** for the six months ended June 30, 2025, compared to the prior year periods[47](index=47&type=chunk) Remaining Performance Obligation | Remaining Performance Obligation (in thousands) | Current | Noncurrent | Total | | :---------------------------------------------- | :------ | :--------- | :---- | | As of June 30, 2025 | $15,824 | $17,910 | $33,734 | | As of December 31, 2024 | $15,805 | $20,946 | $36,751 | [4. Loss Per Common Share](index=15&type=section&id=4.%20Loss%20Per%20Common%20Share) This section presents the calculation of basic and diluted loss per common share, along with the number of weighted-average shares outstanding and anti-dilutive equivalents Loss Per Common Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to common stockholders (in thousands) | $(9,464) | $436 | $(16,775) | $(573) | | Weighted-average common shares outstanding, basic | 206,933,045 | 207,025,967 | 205,982,206 | 205,961,720 | | Net loss per common share, basic | $(0.05) | $0.00 | $(0.08) | $0.00 | | Net loss per common share, diluted | $(0.05) | $0.00 | $(0.08) | $0.00 | - For the three and six months ended June 30, 2025, the company reported a basic and diluted net loss per common share of **$(0.05)** and **$(0.08)**, respectively, compared to **$0.00** for the same periods in 2024[60](index=60&type=chunk) Anti-Dilutive Common Share Equivalents | Anti-Dilutive Common Share Equivalents | 2025 (Three Months) | 2024 (Three Months) | 2025 (Six Months) | 2024 (Six Months) | | :------------------------------------- | :------------------ | :------------------ | :---------------- | :---------------- | | Stock options | 6,996,174 | 158,920 | 6,996,174 | 7,556,543 | | Restricted stock units | 13,518,979 | 102,523 | 13,518,979 | 10,986,075 | | Employee stock purchase plan | 63,469 | 3,988 | 63,469 | 60,450 | | Total anti-dilutive common share equivalents | 20,578,622 | 265,431 | 20,578,622 | 18,603,068 | [5. Fair Value Measurements](index=16&type=section&id=5.%20Fair%20Value%20Measurements) This section explains the classification of financial instruments within a three-level fair value hierarchy and details the fair value of assets and liabilities - The Company classifies financial instruments into a three-level fair value hierarchy based on the observability of valuation inputs[62](index=62&type=chunk)[64](index=64&type=chunk) Fair Value Measurements (in thousands) | Description (in thousands) | Level 1 (June 30, 2025) | Level 2 (June 30, 2025) | Total (June 30, 2025) | | :------------------------- | :---------------------- | :---------------------- | :-------------------- | | Money market mutual funds | $86,368 | $- | $86,368 | | Rabbi trust-owned life insurance policies | $- | $2,951 | $2,951 | | Total assets | $86,368 | $2,951 | $89,319 | | Deferred compensation | $- | $2,615 | $2,615 | | Total liabilities | $- | $2,615 | $2,615 | - Money market mutual funds are classified as Level 1, while rabbi trust-owned life insurance policies and deferred compensation liabilities are classified as Level 2[66](index=66&type=chunk)[67](index=67&type=chunk) [6. Marketable Securities](index=17&type=section&id=6.%20Marketable%20Securities) This section provides information on the company's marketable securities, including their classification, amortized cost, fair value, and maturity profiles - Marketable securities are classified as held-to-maturity and recorded at amortized cost, with no allowance for expected credit losses[68](index=68&type=chunk) Marketable Securities (in thousands) | Sector (in thousands) | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | | :-------------------- | :----------------------------- | :------------------------- | | Agency | $3,099 | $3,103 | | Financial | $22,409 | $22,437 | | Government | $11,402 | $11,400 | | Industrial | $34,551 | $34,716 | | Total | $71,461 | $71,656 | - The fair value of marketable securities is primarily classified as Level 1, with commercial paper holdings in the Financial and Industrial sectors classified as Level 2, totaling **$2,704 thousand** as of June 30, 2025[70](index=70&type=chunk) Maturity of Marketable Securities | Maturity (in thousands) | Amortized Cost (June 30, 2025) | | :---------------------- | :----------------------------- | | Due in one year or less | $40,821 | | Due after one year through five years | $30,640 | | Total | $71,461 | [7. Intangible Assets and Goodwill](index=18&type=section&id=7.%20Intangible%20Assets%20and%20Goodwill) This section details the company's intangible assets, such as software and customer relationships, and reports on amortization expense and impairment assessments Intangible Assets and Goodwill (in thousands) | Intangible Asset (in thousands) | Net Amount (June 30, 2025) | Net Amount (December 31, 2024) | | :------------------------------ | :------------------------- | :----------------------------- | | Internally developed software | $26,139 | $26,228 | | Non-compete | $1,228 | $1,637 | | Customer relationships | $22,724 | $26,685 | | Technology | $11,175 | $12,201 | | Trade name | $3,969 | $4,317 | | Total intangible assets | $65,235 | $71,068 | - Total intangible assets decreased from **$71,068 thousand** at December 31, 2024, to **$65,235 thousand** at June 30, 2025, primarily due to amortization[72](index=72&type=chunk) - Total amortization expense for identifiable intangible assets was **$7,349 thousand** for Q2 2025 and **$14,867 thousand** for the six months ended June 30, 2025[72](index=72&type=chunk) - There were no impairment and write-off expenses for intangible assets in the three or six months ended June 30, 2025, compared to **$162 thousand** in the six months ended June 30, 2024[74](index=74&type=chunk) [8. Leases and Leasing Commitments](index=19&type=section&id=8.%20Leases%20and%20Leasing%20Commitments) This section outlines the company's lease expenses, distinguishing between finance and operating leases, and reports on overall lease commitments Leases and Leasing Commitments (in thousands) | Lease Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Finance lease expense | $2,125 | $2,224 | $4,283 | $4,464 | | Operating lease expense | $76 | $408 | $162 | $822 | | Total lease expense | $2,217 | $2,706 | $4,504 | $5,434 | - Total lease expense decreased by **18%** for the three months ended June 30, 2025, and by **17%** for the six months ended June 30, 2025, primarily due to reductions in operating lease expenses[75](index=75&type=chunk) [9. Long-Term Debt](index=19&type=section&id=9.%20Long-Term%20Debt) This section describes the company's long-term debt obligations, including promissory notes for land acquisition and details of its revolving credit facility Long-Term Debt (in thousands) | Long-Term Debt (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :---------------------------- | :------------------ | :---------------------- | | Total principal due on promissory notes payable for land acquisition | $9,100 | $9,100 | | Current portion of promissory notes | $(4,800) | $(4,800) | | Long-term debt | $4,300 | $4,300 | - The Company's long-term debt consists of promissory notes for land acquisition, with an aggregate outstanding principal of **$9,100 thousand** as of June 30, 2025[76](index=76&type=chunk)[89](index=89&type=chunk) - In August 2024, the Company entered into a 2024 Amended and Restated Credit Agreement, establishing a **$150,000 thousand** 5-year revolving credit facility, with no outstanding balance as of June 30, 2025[76](index=76&type=chunk)[85](index=85&type=chunk) - The Company was in compliance with its financial debt covenants as of June 30, 2025[82](index=82&type=chunk) [10. Stockholders' Equity](index=22&type=section&id=10.%20Stockholders%27%20Equity) This section provides details on the company's common stock, shares reserved for future issuance, and the status of its share repurchase program - As of June 30, 2025, the Company had **207,695,309** shares of common stock issued and outstanding[6](index=6&type=chunk) Common Shares Reserved for Future Issuance | Common Shares Reserved for Future Issuance (June 30, 2025) | Number of Shares | | :--------------------------------------------------------- | :--------------- | | Outstanding stock options | 6,996,174 | | Restricted stock units | 13,518,979 | | Available for future issuance under stock award plans | 30,181,685 | | Available for future issuance under employee stock purchase plan | 9,596,803 | | Total common shares reserved for future issuance | 60,293,641 | - The board authorized a Share Repurchase Program of up to **$100,000 thousand** in August 2024, with a **$50,000 thousand** cap per fiscal year[93](index=93&type=chunk) - No shares were repurchased in the three or six months ended June 30, 2025, leaving **$50,000 thousand** available[94](index=94&type=chunk) [11. Stock-Based Compensation](index=22&type=section&id=11.%20Stock-Based%20Compensation) This section reports on the company's stock-based compensation plans, associated expenses, and unamortized compensation for unvested awards - The 2021 Long-Term Incentive Plan and the 2021 Employee Stock Purchase Plan (ESPP) are maintained for stock awards, with shares automatically increasing on January 1, 2025[95](index=95&type=chunk)[96](index=96&type=chunk) Stock-Based Compensation Expense (in thousands) | Stock-Based Compensation Expense (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenues | $1,949 | $1,587 | $3,889 | $2,784 | | Sales and marketing | $1,540 | $1,453 | $2,937 | $2,551 | | Research and development | $3,802 | $2,924 | $7,491 | $6,582 | | General and administrative | $7,520 | $6,153 | $14,720 | $10,966 | | Total | $14,811 | $12,117 | $29,037 | $22,883 | - Total stock-based compensation expense increased by **22.2%** for the three months ended June 30, 2025, and by **26.9%** for the six months ended June 30, 2025, compared to the prior year periods[101](index=101&type=chunk) - As of June 30, 2025, unamortized stock-based compensation expense for unvested stock options was **$4,997 thousand** (weighted average period of **1.7 years**) and for unvested RSUs was **$115,929 thousand** (weighted average period of **2.4 years**)[99](index=99&type=chunk)[100](index=100&type=chunk) [12. Income Taxes](index=24&type=section&id=12.%20Income%20Taxes) This section presents the company's effective tax rates and explains the methodology used for interim income tax provision Effective Tax Rate | Effective Tax Rate | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Effective tax rate | 4.8% | 21.4% | (3.8)% | (74.2)% | - The Company uses the discrete effective tax rate method for interim income tax provision due to the difficulty in reliably estimating the annual effective tax rate[106](index=106&type=chunk) [13. Subsequent Events](index=24&type=section&id=13.%20Subsequent%20Events) This section discloses significant events that occurred after the balance sheet date, such as new legislation, and their potential financial impact - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, extending key provisions of the 2017 Tax Cuts and Jobs Act, but is not expected to have a material impact on the Company's financial statements for the periods ended June 30, 2025[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on AvidXchange's financial condition and operational results, highlighting revenue drivers, expense trends, macroeconomic impacts, and liquidity. It details the proposed merger, business model, key performance metrics, and a comparative analysis of financial performance for the three and six months ended June 30, 2025, versus 2024 [Overview](index=27&type=section&id=Overview) This section provides a historical background of AvidXchange, its growth, and the strategic significance of its proposed acquisition - AvidXchange, founded in 2000, has grown substantially through organic growth and strategic acquisitions, launching the AvidPay Network in 2012 to address AP automation and efficient payment methods for the middle market[114](index=114&type=chunk) - The Company entered into a Merger Agreement on May 6, 2025, to be acquired by Arrow Borrower 2025, Inc., with the merger expected to close in Q4 2025, leading to delisting from Nasdaq and becoming a privately held company[115](index=115&type=chunk) [Our Business and Revenue Model](index=27&type=section&id=Our%20Business%20and%20Revenue%20Model) This section describes AvidXchange's go-to-market strategy, recurring revenue streams, and the primary sources of software and payment revenue - AvidXchange employs a hybrid go-to-market strategy, combining direct sales with indirect channels through reseller partners and strategic partnerships (e.g., Mastercard, financial institutions, software providers)[116](index=116&type=chunk) - Revenues are recurring and primarily derived from software fees from buyers and payment revenue from transactions processed through the AvidPay Network[117](index=117&type=chunk) Our Business and Revenue Model | Revenue Type (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Software revenue | $32,927 | $29,914 | $63,865 | $59,602 | | Payment revenue | $76,681 | $74,183 | $152,621 | $149,385 | | Services revenue | $962 | $1,035 | $2,026 | $1,743 | | Total revenues | $110,570 | $105,132 | $218,512 | $210,730 | [Macroeconomic Environment's Impact on Revenue](index=27&type=section&id=Macroeconomic%20Environment%27s%20Impact%20on%20Revenue) This section analyzes how economic factors like interest rates, inflation, and business confidence influence the company's payment volumes, sales, and revenue - Economic uncertainty, including tariff, monetary policy, inflation, and treasury yields, negatively impacted business confidence and led to tempered spending by customers, affecting payment volumes, amounts, and sales[118](index=118&type=chunk)[119](index=119&type=chunk) - Higher interest rates positively impact payment revenue and interest income from funds held for buyers, but a potential Federal Reserve rate cut would negatively impact this revenue component[120](index=120&type=chunk) [Key Financial and Business Metrics](index=29&type=section&id=Key%20Financial%20and%20Business%20Metrics) This section presents key operational metrics such as transactions processed, transaction yield, and total payment volume, highlighting their trends and growth Key Financial and Business Metrics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Percentage Change (QoQ) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percentage Change (YoY) | | :-------------------- | :------------------------------- | :------------------------------- | :---------------------- | :----------------------------- | :----------------------------- | :---------------------- | | Transactions Processed | 20,094,193 | 19,730,167 | 1.8% | 39,775,912 | 39,050,282 | 1.9% | | Transaction Yield | $5.50 | $5.33 | 3.2% | $5.49 | $5.40 | 1.7% | | Total Payment Volume (in millions) | $21,455 | $20,617 | 4.1% | $42,057 | $40,484 | 3.9% | - Transactions processed increased by **1.8%** QoQ and **1.9%** YoY, indicating continued use of solutions[122](index=122&type=chunk)[123](index=123&type=chunk) - Transaction yield increased by **3.2%** QoQ and **1.7%** YoY, reflecting the value of solutions[122](index=122&type=chunk)[124](index=124&type=chunk) - Total payment volume increased by **4.1%** QoQ and **3.9%** YoY, demonstrating demand for payment services[122](index=122&type=chunk)[125](index=125&type=chunk) [Components of Results of Operations](index=29&type=section&id=Components%20of%20Results%20of%20Operations) This section breaks down the various components of the company's financial results, including revenue types, cost of revenues, and operating expenses - Software revenue is generated from fees based on invoice/payment transactions and recurring SaaS fees, typically from multi-year contracts[127](index=127&type=chunk) - Payment revenue is derived from electronic payment solutions (VCC, AvidPay Direct), fees from the Payment Accelerator product, and interest on funds held for buyers pending disbursement[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - Cost of revenues includes personnel, external processing expenses (scanning, printing, bank fees), technology use fees, and adjustments for uncollectible advancements and treasury losses[136](index=136&type=chunk)[137](index=137&type=chunk) - Sales and marketing expenses cover direct sales, partner channels, commissions, and brand awareness activities, with a focus on efficient deployment for modest growth[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Research and development expenses are for new product development, enhancements, and infrastructure projects, including personnel and outsourced services, with some costs capitalized[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - General and administrative expenses include finance, HR, legal, IT, and facilities costs, with significant increases in 2025 due to Merger-related transaction costs and stock-based compensation[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section provides management's perspective on AvidXchange's financial condition and operational results, highlighting revenue drivers, expense trends, macroeconomic impacts, and liquidity. It details the proposed merger, business model, key performance metrics, and a comparative analysis of financial performance for the three and six months ended June 30, 2025, versus 2024 [Comparison of the Three Months Ended June 30, 2025 and 2024](index=32&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section provides a detailed comparative analysis of the company's financial performance for the three-month periods, highlighting revenue and expense changes Comparison of the Three Months Ended June 30, 2025 and 2024 | Metric (in thousands) | 2025 (Q2) | 2024 (Q2) | Change Amount | Change Percentage | | :-------------------- | :-------- | :-------- | :------------ | :---------------- | | Revenues | $110,570 | $105,132 | $5,438 | 5.2% | | Cost of revenues | $30,949 | $30,426 | $523 | 1.7% | | Sales and marketing | $23,068 | $19,956 | $3,112 | 15.6% | | Research and development | $26,975 | $25,008 | $1,967 | 7.9% | | General and administrative | $33,510 | $22,635 | $10,875 | 48.0% | | Depreciation and amortization | $8,479 | $9,208 | $(729) | (7.9)% | | Other Income (Expense) | $2,470 | $2,656 | $(186) | (7.0)% | | Income tax expense | $(477) | $119 | $(596) | (500.8)% | - Revenue growth was driven by a **$3.0 million** increase in software revenue (**10%**) and a **$2.5 million** increase in payment revenue (**3%**), despite a **$1.2 million** decrease in interest on funds held for customers[156](index=156&type=chunk) - General and administrative expenses surged by **48.0%** due to **$6.4 million** in Merger-related transaction costs and increased employee costs, including stock-based compensation[162](index=162&type=chunk) - Other income decreased due to lower interest income from reduced cash balances and interest rates, partially offset by a decrease in interest expense from term loan repayment[164](index=164&type=chunk) [Comparison of the Six Months Ended June 30, 2025 and 2024](index=35&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section offers a detailed comparative analysis of the company's financial performance for the six-month periods, highlighting revenue and expense changes Comparison of the Six Months Ended June 30, 2025 and 2024 | Metric (in thousands) | 2025 (YTD) | 2024 (YTD) | Change Amount | Change Percentage | | :-------------------- | :--------- | :--------- | :------------ | :---------------- | | Revenues | $218,512 | $210,730 | $7,782 | 3.7% | | Cost of revenues | $61,738 | $60,759 | $979 | 1.6% | | Sales and marketing | $45,579 | $39,697 | $5,882 | 14.8% | | Research and development | $52,357 | $50,912 | $1,445 | 2.8% | | General and administrative | $62,458 | $46,895 | $15,563 | 33.2% | | Impairment and write-off of intangible assets | $- | $162 | $(162) | (100.0)% | | Depreciation and amortization | $17,148 | $18,515 | $(1,367) | (7.4)% | | Other Income (Expense) | $4,605 | $5,881 | $(1,276) | (21.7)% | | Income tax (benefit) expense | $612 | $244 | $368 | 150.8% | - Total revenues increased by **3.7%** to **$218,512 thousand**, driven by a **$4.3 million** increase in software revenue (**7%**) and a **$3.2 million** increase in payment revenue (**2%**), despite a **$3.3 million** decrease in interest on funds held for customers[166](index=166&type=chunk) - General and administrative expenses increased by **33.2%** due to **$8.6 million** in Merger-related transaction costs and a **$5.4 million** increase in employee costs, including stock-based compensation[171](index=171&type=chunk) - Other income decreased by **21.7%** due to a **$3.9 million** unfavorable decrease in interest income, partially offset by a **$2.6 million** favorable decrease in interest expense[173](index=173&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's sources of liquidity, capital needs, and the potential impact of the proposed merger on its financial structure - As of June 30, 2025, primary liquidity sources include **$335.8 million** in unrestricted cash and cash equivalents, **$71.5 million** in marketable securities, cash from operations, and **$150.0 million** available under the 2024 Amended and Restated Credit Agreement[175](index=175&type=chunk) - The Company believes current liquidity is sufficient for the next twelve months but may need to raise additional capital through equity or debt financing, which could dilute existing stockholders or impose restrictive covenants[176](index=176&type=chunk) - The proposed Merger, if consummated, will result in the Company becoming a privately held entity, impacting its capital structure and public market access[177](index=177&type=chunk) [Cash Flows](index=38&type=section&id=Cash%20Flows) This section analyzes the company's cash flow activities from operations, investing, and financing, explaining significant changes between periods Selected Cash Flow Data (in thousands) | Selected Cash Flow Data (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $30,606 | $18,928 | | Net cash used in investing activities | $(53,001) | $(56,279) | | Net cash used in financing activities | $(99,620) | $(379,651) | | Net decrease in cash, cash equivalents, and restricted funds held for customers | $(122,015) | $(417,002) | - Net cash provided by operating activities improved to **$30.6 million** in 2025 from **$18.9 million** in 2024, primarily due to changes in working capital[180](index=180&type=chunk) - Net cash used in financing activities significantly decreased to **$99.6 million** in 2025 from **$379.7 million** in 2024, mainly due to variations in payment service obligations and common stock issuances[184](index=184&type=chunk) [Outstanding Debt](index=38&type=section&id=Outstanding%20Debt) This section details the company's current and long-term debt obligations, specifically promissory notes for land acquisition Outstanding Debt (in thousands) | Outstanding Debt (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------ | :------------------ | :---------------------- | | Total principal due on promissory notes payable for land acquisition | $9,100 | $9,100 | | Current portion of promissory notes | $(4,800) | $(4,800) | | Long-term debt | $4,300 | $4,300 | [Credit Facilities](index=38&type=section&id=Credit%20Facilities) This section describes the company's revolving credit facility, its available capacity, and compliance with financial covenants - The Company's 2024 Amended and Restated Credit Agreement provides a **$150.0 million** revolving credit facility, with an option to increase by an additional **$150.0 million**, and the Company was in compliance with all financial covenants as of June 30, 2025[186](index=186&type=chunk)[187](index=187&type=chunk) [Land Promissory Notes](index=39&type=section&id=Land%20Promissory%20Notes) This section provides specific details regarding the promissory notes associated with the company's land and property acquisitions - The Company holds promissory notes for land and improvements adjacent to its Charlotte headquarters, with details provided in Note 9[188](index=188&type=chunk) [Issuances of Common Stock](index=39&type=section&id=Issuances%20of%20Common%20Stock) This section reports on the issuance of common stock under the company's existing stock plans during the reporting period - During the six months ended June 30, 2025, the Company issued common stock under its existing stock plans[189](index=189&type=chunk) [Share Repurchases](index=39&type=section&id=Share%20Repurchases) This section provides an update on the company's share repurchase program, including the amount authorized and shares remaining available - No shares were repurchased under the **$100.0 million** Share Repurchase Program during the three and six months ended June 30, 2025, with **$50.0 million** remaining available for future repurchases[190](index=190&type=chunk) [Payment Obligations](index=39&type=section&id=Payment%20Obligations) This section explains the nature of payment service obligations and the company's transition to a money transmitter license model for managing customer funds - Payment service obligations of **$1,148.2 million** as of June 30, 2025, represent funds collected from customers for supplier payments, offset by restricted funds held for customers[191](index=191&type=chunk) - The Company has largely transitioned from a legacy trust model to a money transmitter license model for payment transmission, with **$50.9 million** in trust-related and similar accounts as of June 30, 2025[192](index=192&type=chunk) [Contractual Obligations](index=39&type=section&id=Contractual%20Obligations) This section confirms whether there have been any material changes to the company's contractual obligations and commitments - There were no material changes to contractual obligations and commitments during the six months ended June 30, 2025, compared to the prior annual report[193](index=193&type=chunk) [Critical Accounting Policies and Estimates](index=39&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section states whether there have been any material changes to the company's critical accounting policies and estimates - No material changes occurred in critical accounting policies and estimates during the six months ended June 30, 2025[195](index=195&type=chunk) [Recent Accounting Pronouncements](index=39&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to the notes to financial statements for details on recently adopted and issued accounting pronouncements - Information on recently adopted and issued accounting pronouncements not yet adopted is detailed in Note 2 to the unaudited consolidated financial statements[196](index=196&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines AvidXchange's exposure to various market risks, including interest rate risk on its investment portfolio and variable rate debt, credit risk from investments and payment acceleration products, liquidity risk in managing buyer funds, and concentration risk related to revenue sources and financial institutions [Interest Rate Risk](index=40&type=section&id=Interest%20Rate%20Risk) This section assesses the company's exposure to fluctuations in interest rates on its cash, investments, and variable rate debt - The Company is exposed to interest rate risk on its operating cash and buyer funds, which are invested in interest-bearing demand deposit accounts and marketable securities[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - The annualized interest rate earned on investments decreased to **4.04%** in H1 2025 from **5.03%** in FY 2024[200](index=200&type=chunk) - A **100 basis point** increase in interest rates would increase interest income by approximately **$1.6 million** from operating cash and **$5.9 million** from buyer funds for H1 2025[200](index=200&type=chunk) [Credit Risk](index=40&type=section&id=Credit%20Risk) This section identifies the company's credit exposures from investments, advance payments, and the Payment Accelerator product, along with mitigation strategies - Credit risk arises from investments exceeding FDIC limits, buyer funds payments made in advance of confirmed funds, and the Payment Accelerator product where supplier advances may not be recouped[202](index=202&type=chunk)[204](index=204&type=chunk) - Mitigation strategies include diversifying portfolios, setting minimum credit quality for investments, monitoring financial institutions, and using data analytics for advance payment decisions[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) [Liquidity Risk](index=42&type=section&id=Liquidity%20Risk) This section describes how the company manages its liquidity to ensure sufficient funds are available to meet payment obligations - Liquidity risk is minimized by collecting buyer funds in advance of payment obligations, ensuring sufficient funds to satisfy all obligations[205](index=205&type=chunk) [Concentration Risk](index=42&type=section&id=Concentration%20Risk) This section highlights the company's exposure to revenue concentration from key service providers and financial institutions holding buyer funds - A substantial portion of revenue is concentrated in interchange fees from VCC service providers, with two suppliers accounting for over **10%** of total revenue individually[206](index=206&type=chunk) - Future changes in payment network regulations or interchange rates could materially affect revenue and operating results[207](index=207&type=chunk) - The majority of buyer funds are held in demand accounts at a single FDIC-insured national bank, mitigated by monitoring and maintaining balances at well-capitalized institutions[208](index=208&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and reports on any changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=42&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on management's assessment of the effectiveness of the company's disclosure controls and procedures - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[209](index=209&type=chunk) [Changes in Internal Control Over Financial Reporting](index=42&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) This section discloses any material changes in the company's internal control over financial reporting during the quarter - There were no changes in internal control over financial reporting during the fiscal quarter ended June 30, 2025, that materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting[210](index=210&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section addresses legal proceedings, updates on risk factors, equity sales, debt defaults, other disclosures, and a list of filed exhibits [Item 1. Legal Proceedings.](index=42&type=section&id=Item%201.%20Legal%20Proceedings.) This section describes legal proceedings, specifically a stockholder lawsuit related to the proposed Merger, and generally addresses the Company's exposure to litigation - A stockholder lawsuit (Zappia v. AvidXchange Holdings, Inc., et al.) was filed on July 11, 2025, alleging materially false and misleading statements and omissions in the preliminary proxy statement related to the Merger[211](index=211&type=chunk) - The plaintiff voluntarily withdrew a motion for preliminary injunction seeking to enjoin the stockholder vote and consummation of the Merger on August 1, 2025[212](index=212&type=chunk) - The Company is not currently a party to any other legal proceedings that would have a material adverse effect on its business, but defending such proceedings can be costly and burdensome[213](index=213&type=chunk) [Item 1A. Risk Factors.](index=44&type=section&id=Item%201A.%20Risk%20Factors.) This section refers to the Company's previously disclosed risk factors, noting no material changes except for updates or additional factual information provided elsewhere in the current report - No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for December 31, 2024, and the Quarterly Report on Form 10-Q for March 31, 2025, except as updated or supplemented by information in this report[214](index=214&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section confirms no unregistered sales of equity securities and provides an update on the use of proceeds from the IPO and the status of the share repurchase program - There were no unregistered sales of equity securities[215](index=215&type=chunk) - Proceeds from the October 2021 IPO have been partially invested in short-term, interest-bearing, investment-grade securities, with no material changes in planned use[216](index=216&type=chunk) - No shares were repurchased under the **$100.0 million** Share Repurchase Program during the three and six months ended June 30, 2025, with **$50.0 million** remaining available for future repurchases[217](index=217&type=chunk) [Item 3. Defaults Upon Senior Securities.](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This section states that there are no defaults upon senior securities - Not applicable[218](index=218&type=chunk) [Item 4. Mine Safety Disclosures.](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This section states that mine safety disclosures are not applicable to the Company - Not applicable[219](index=219&type=chunk) [Item 5. Other Information.](index=44&type=section&id=Item%205.%20Other%20Information.) This section provides other information, including details on a trading agreement Other Information | Action | Date | Rule 10b5-1 | Non-Rule 10b5-1 | Total Shares to be Sold | Expiration Date | | :-------- | :--------- | :---------- | :-------------- | :---------------------- | :-------------- | | Terminate | May 6, 2025 | X | | 45,000 | June 30, 2025 | - Angelic Gibson, Chief Information Officer, Senior Vice President, terminated a Rule 10b5-1 trading agreement on May 6, 2025, for **45,000** shares, expiring June 30, 2025[220](index=220&type=chunk) [Item 6. Exhibits.](index=47&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed as part of the Form 10-Q, including merger agreements, organizational documents, certifications, and XBRL data - Key exhibits include the Agreement and Plan of Merger dated May 6, 2025 (Exhibit 2.2), certifications by the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1), and Inline XBRL documents[221](index=221&type=chunk) [Signatures](index=48&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q filing - The report was signed on August 6, 2025, by Joel Wilhite, Chief Financial Officer, as the authorized signatory and Principal Financial and Accounting Officer[225](index=225&type=chunk)

Executive Summary & Company Overview This section summarizes AvidXchange's Q2 2025 financial and operational performance, strategic outlook, and company profile [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Financial%20Highlights) Q2 2025 revenue grew **5.2%** to **$110.6 million**, with a GAAP net loss of **$(9.5) million** and stable Non-GAAP net income of **$10.7 million** Q2 2025 Financial Performance | Metric (Q2 2025) | Value ($ millions) | YoY Change (%) | | :----------------- | :----------------- | :------------- | | Total Revenue | 110.6 | +5.2% | | Interest Income | 10.6 | -10.2% | | GAAP Net Loss | (9.5) | N/A (vs. $0.4M income) | | Non-GAAP Net Income| 10.7 | 0.0% | | GAAP Gross Profit | 73.6 | +7.1% | | Non-GAAP Gross Profit| 81.6 | +6.9% | | Adjusted EBITDA | 17.4 | -0.6% | - General and administrative expenses included **$6.4 million** in transaction and deal costs, primarily related to the proposed merger announced on May 6, 2025[5](index=5&type=chunk) [Second Quarter 2025 Key Business Metrics and Highlights](index=1&type=section&id=1.2%20Second%20Quarter%202025%20Key%20Business%20Metrics%20and%20Highlights) Q2 2025 operational metrics show **1.8%** transaction growth to **20.1 million** and **4.1%** payment volume growth to **$21.5 billion** Q2 2025 Key Business Metrics | Metric (Q2 2025) | Value (Units) | YoY Change (%) | | :----------------- | :----------------- | :------------- | | Total Transactions | 20.1 million | +1.8% | | Total Payment Volume| $21.5 billion | +4.1% | | Transaction Yield | $5.50 | +3.2% | [Financial Outlook & Acquisition Update](index=1&type=section&id=1.3%20Financial%20Outlook%20%26%20Acquisition%20Update) AvidXchange suspended its fiscal 2025 financial outlook and will not hold an earnings call due to its pending acquisition by TPG - AvidXchange has suspended its financial outlook for fiscal 2025[4](index=4&type=chunk) - The company will not hold a teleconference to discuss Q2 2025 results due to its pending acquisition by TPG in partnership with Corpay[4](index=4&type=chunk) [About AvidXchange](index=1&type=section&id=1.4%20About%20AvidXchange) AvidXchange offers AP automation and payment solutions for over **8,500** middle market businesses and **1.35 million** supplier customers - AvidXchange provides AP automation software and payment solutions for middle market businesses and their suppliers[5](index=5&type=chunk) - The company's SaaS-based platform digitizes and automates AP workflows for over **8,500** businesses[5](index=5&type=chunk) - AvidXchange has made payments to more than **1,350,000** supplier customers over the past five years[6](index=6&type=chunk) Non-GAAP Measures and Other Performance Metrics This section defines AvidXchange's non-GAAP financial measures and explains their rationale for evaluating core operating performance and internal planning [Definition and Rationale of Non-GAAP Measures](index=2&type=section&id=2.1%20Definition%20and%20Rationale%20of%20Non-GAAP%20Measures) AvidXchange uses non-GAAP measures (e.g., Non-GAAP Gross Profit, Adjusted EBITDA) for core operating performance evaluation, excluding non-cash or non-core items - Non-GAAP measures presented include Non-GAAP Gross Profit, Non-GAAP Gross Margin, Adjusted EBITDA, Non-GAAP Net Income (Loss), and Non-GAAP Earnings Per Share[8](index=8&type=chunk) - These non-GAAP measures are provided as additional information to complement GAAP results, eliminating items not part of core operations or not requiring cash outlay, such as stock-based compensation expense[9](index=9&type=chunk)[12](index=12&type=chunk) - Management uses non-GAAP measures for evaluating operating performance and for internal planning and forecasting, believing they indicate underlying business trends[12](index=12&type=chunk) Consolidated Financial Statements (GAAP) This section presents AvidXchange's GAAP consolidated statements, including operations, balance sheets, and cash flows, for the reported periods [Consolidated Statements of Operations](index=4&type=section&id=3.1%20Consolidated%20Statements%20of%20Operations) Q2 2025 net loss was **$(9.46) million** (vs. **$0.44 million** income in Q2 2024), despite **5.2%** revenue growth, due to higher operating expenses Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $110,570 | $105,132 | $218,512 | $210,730 | | Cost of revenues | $30,949 | $30,426 | $61,738 | $60,759 | | Total operating expenses| $92,032 | $76,807 | $177,542 | $156,181 | | Loss from operations | $(12,411) | $(2,101) | $(20,768) | $(6,210) | | Net (loss) income | $(9,464) | $436 | $(16,775) | $(573) | | Basic EPS | $(0.05) | $0.00 | $(0.08) | $0.00 | | Diluted EPS | $(0.05) | $0.00 | $(0.08) | $0.00 | [Consolidated Balance Sheets](index=5&type=section&id=3.2%20Consolidated%20Balance%20Sheets) Total assets decreased to **$2,003.8 million** as of June 30, 2025, from **$2,089.7 million** at year-end 2024, with a slight increase in stockholders' equity Consolidated Balance Sheets (in thousands) | Metric (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :-------------------- | :------------------ | :---------------------- | | Total current assets | $1,639,955 | $1,720,714 | | Total assets | $2,003,835 | $2,089,711 | | Total current liabilities| $1,232,017 | $1,332,766 | | Total liabilities | $1,316,285 | $1,417,878 | | Total stockholders' equity| $687,550 | $671,833 | [Consolidated Statements of Cash Flows](index=6&type=section&id=3.3%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities rose to **$30.6 million** for H1 2025, but investing and financing activities led to a net decrease in cash and restricted funds Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities| $30,606 | $18,928 | | Net cash used in investing activities| $(53,001) | $(56,279) | | Net cash used in financing activities| $(99,620) | $(379,651) | | Net decrease in cash, cash equivalents, and restricted funds held for customers| $(122,015) | $(417,002) | | Cash, cash equivalents, and restricted funds held for customers, end of period| $1,483,968 | $1,568,628 | Reconciliation of GAAP to Non-GAAP Measures This section provides detailed reconciliations between AvidXchange's GAAP and non-GAAP financial measures, including gross profit, net income, and Adjusted EBITDA [Non-GAAP Gross Profit and Gross Margin Reconciliation](index=7&type=section&id=4.1%20Non-GAAP%20Gross%20Profit%20and%20Gross%20Margin%20Reconciliation) Q2 2025 Non-GAAP Gross Profit was **$81.6 million** with a **73.8%** margin, an increase from **72.6%** in Q2 2024, due to non-cash adjustments Non-GAAP Gross Profit and Gross Margin Reconciliation (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP Gross profit | $73,644 | $68,672 | $144,668 | $137,873 | | Non-GAAP gross profit | $81,617 | $76,331 | $160,754 | $152,828 | | GAAP Gross margin | 66.6% | 65.3% | 66.2% | 65.4% | | Non-GAAP gross margin | 73.8% | 72.6% | 73.6% | 72.5% | [Non-GAAP Net Income (Loss) Reconciliation](index=8&type=section&id=4.2%20Non-GAAP%20Net%20Income%20(Loss)%20Reconciliation) Q2 2025 GAAP net loss of **$(9.46) million** contrasts with stable Non-GAAP net income of **$10.71 million**, adjusted for non-cash and transaction costs Non-GAAP Net Income (Loss) Reconciliation (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) (GAAP) | $(9,464) | $436 | $(16,775) | $(573) | | Non-GAAP net income (loss) | $10,707 | $10,748 | $21,122 | $22,010 | | GAAP Net income (loss) per share, basic and diluted| $(0.05) | $0.00 | $(0.08) | $0.00 | | Non-GAAP basic net income (loss) per share| $0.05 | $0.05 | $0.10 | $0.11 | | Non-GAAP diluted income (loss) per share| $0.05 | $0.05 | $0.10 | $0.11 | - Key adjustments for Non-GAAP net income include amortization of acquired intangible assets, stock-based compensation expense, and transaction and acquisition-related costs[24](index=24&type=chunk) [Adjusted EBITDA Reconciliation](index=9&type=section&id=4.3%20Adjusted%20EBITDA%20Reconciliation) Q2 2025 Adjusted EBITDA was **$17.41 million**, slightly down from Q2 2024, after excluding depreciation, interest, taxes, stock-based compensation, and transaction costs Adjusted EBITDA Reconciliation (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss (GAAP) | $(9,464) | $436 | $(16,775) | $(573) | | Adjusted EBITDA | $17,407 | $17,450 | $34,924 | $35,115 | - Adjusted EBITDA adjustments include depreciation and amortization, interest income and expense, income tax expense, stock-based compensation expense, and transaction and acquisition-related costs[26](index=26&type=chunk) - Transaction and acquisition-related costs for Q2 2025 were **$6.45 million**, related to the proposed merger[26](index=26&type=chunk) Additional Information This section provides important disclosures regarding forward-looking statements and details for investor communication and information access [Forward-Looking Statements](index=2&type=section&id=5.1%20Forward-Looking%20Statements) Forward-looking statements regarding future events and performance are subject to risks detailed in SEC filings, with no obligation for updates - The press release contains forward-looking statements, including those related to the pending acquisition by TPG in partnership with Corpay[7](index=7&type=chunk) - These statements are based on management's current expectations and involve known and unknown risks and uncertainties that could cause actual results to differ materially[7](index=7&type=chunk) - AvidXchange's SEC filings, including its Annual Report on Form 10-K, contain discussions of these risks[7](index=7&type=chunk) [Investor Information](index=3&type=section&id=5.2%20Investor%20Information) AvidXchange discloses material information via SEC filings, press releases, and its Investor Relations website (https://ir.avidxchange.com) for investor access - AvidXchange routinely announces material information via SEC filings, press releases, public conference calls, webcasts, and its Investor Relations website[13](index=13&type=chunk) - Investors can access information and sign up for email alerts on the Investor Relations section of AvidXchange's website: https://ir.avidxchange.com[13](index=13&type=chunk) - Investor contact information is provided for Subhaash Kumar at Skumar1@avidxchange.com or 813.760.2309[14](index=14&type=chunk)

CHARLOTTE, N.C., Aug. 06, 2025 (GLOBE NEWSWIRE) -- AvidXchange Holdings, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today announced financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights: A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation o ...

Core Insights - AvidXchange, Inc. released its 2025 Economic Sentiment Survey, indicating a significant shift in finance professionals' preparedness for economic uncertainty compared to 2020 [1][2] Economic Sentiment - 67% of finance professionals feel more prepared to handle economic uncertainty than in 2020, attributing this to increased technology investment and experience [2] - 86% express concern about the current economy, with nearly half cutting discretionary spending [3] - 50% are "very concerned" about a potential recession, with 22% expecting it within the next 12 months [3] Technology Investment - 70% of finance professionals consider technology critical for responding to changing conditions, with 72% noting that tools implemented during the pandemic are yielding benefits [4] - 49% are more likely to invest in AI and automation due to ongoing economic uncertainty, focusing on smarter, faster decision-making [4][8] Strategic Role of Finance - Nearly 30% of finance teams are engaging in scenario planning and financial modeling, while 27% are strengthening supplier relationships, indicating a shift towards strategic leadership [5] - Finance professionals are transitioning from reactive roles to proactive ones, influencing business direction and resilience [6] Economic Pressures - 83% report supplier cost increases due to inflation, and 52% indicate that tariffs have led to moderate forecast adjustments [7] - Nearly one-third of organizations are sharing increased costs with customers [7] Future Outlook - Despite 52% expecting continued volatility into 2026, the overall sentiment among finance professionals is one of momentum and proactive engagement [6]

Core Viewpoint - A class action lawsuit has been filed against AvidXchange Holdings, Inc. in connection with its proposed sale to TPG Global, LLC and Corpay, Inc. for $10.00 per share in cash [1]. Group 1: Lawsuit Details - The lawsuit was filed on July 11, 2025, in the United States District Court for the Southern District of New York [1]. - The case is titled Zappia v. AvidXchange Holdings, Inc., et al., with the case number 1:25-cv-5727-ER [1]. - The claims are asserted under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as well as under Delaware law [1]. Group 2: Investor Notification - Avid investors are notified that they may move the Court to serve as lead plaintiff within 60 days of the notice [2]. - Additional information regarding the class action lawsuit can be found on the law firm's website or by contacting them directly [2]. Group 3: Firm Background - Wohl & Fruchter LLP has over a decade of experience representing investors in litigation related to fraud and corporate misconduct [3]. - The firm has successfully recovered hundreds of millions of dollars in damages for investors [3].

Core Viewpoint - Wohl & Fruchter LLP is investigating the fairness of the proposed sale of AvidXchange Holdings, Inc. to TPG Global LLC and Corpay, Inc. for $10.00 per share in cash, focusing on potential conflicts of interest and whether the Avid Board acted in the best interests of shareholders [1][4][6]. Group 1: Sale Details - AvidXchange announced on May 6, 2025, that it agreed to be sold to TPG and Corpay for $10.00 per share in cash [4]. - Avid filed a preliminary proxy statement with the SEC on June 17, 2025, soliciting stockholders to vote for the proposed sale at a special meeting yet to be scheduled [2][5]. Group 2: Investigation Focus - The investigation by Wohl & Fruchter LLP centers on whether the Avid Board of Directors acted in the best interests of shareholders and if the agreed price is fair [6]. - Concerns have been raised regarding the lack of disclosure of material facts related to potential conflicts of interest in the proxy statement [2][5]. Group 3: Management's Role - Certain members of Avid's senior management, including CEO Michael Praeger, have agreed to roll over a significant portion of their equity in support of the deal, which is not being offered to public stockholders [4].

Business Overview - AvidXchange的目标市场是价值400亿美元的中端市场AP和支付自动化领域[15, 43] - AvidXchange在2023年处理了7530万笔交易，总支付额为759亿美元[36, 65] - AvidXchange拥有由8000名买家和120万供应商组成的AvidPay网络[36, 65] Financial Performance (Q3 2024) - 总收入为1亿1280万美元，同比增长143%[67] - 非美国通用会计准则(Non-GAAP)毛利润为8400万美元，占总收入的745%[71] - 总交易量为2020万笔，同比增长52%[67] - 总支付额为215亿美元，同比增长94%[67] Financial Outlook (FY 2024) - 预计全年收入在4亿3700万美元至4亿3900万美元之间，同比增长148%-153%[78] - 调整后的EBITDA预计为7800万美元至7900万美元[78] - 非美国通用会计准则(Non-GAAP)摊薄后每股收益预计为024美元至025美元[78] Medium & Long Term Goals - 中期目标（2025年预计）：非美国通用会计准则(Non-GAAP)毛利率为72%-75%，调整后的EBITDA利润率超过20%[82] - 长期目标（5年）：收入达到10亿美元，非美国通用会计准则(Non-GAAP)毛利率超过75%，调整后的EBITDA利润率超过30%[87, 88]