Financial Data and Key Metrics Changes - Revenue grew 272% year-over-year to $1.45 million, the strongest quarter yet, reflecting accelerating adoption of AI-driven solutions [7][12] - Gross profit increased 1,070% year-over-year to $720,000, indicating margin expansion from higher recurring revenue [12] - Net loss for the quarter was $2.06 million compared to a loss of $1.72 million last year, as the company continued to invest in growth [12] Business Line Data and Key Metrics Changes - Hardware sales increased 144%, remote guarding revenue rose 154%, and cloud subscriptions expanded 142% [13] - Properties serviced grew 83%, and installation and other services increased 790%, demonstrating scaling across customers and products [13] Market Data and Key Metrics Changes - The company signed approximately $4.79 million in contracts through the end of September, more than triple the total of $1.5 million for all of 2024 [7] - September was the strongest month in the company's history, with over $1 million in new contracts signed [7] Company Strategy and Development Direction - The company focuses on expanding its AI-driven security solutions, emphasizing proactive systems that detect and prevent incidents in real-time [6][10] - A customer financing program was launched to help large property operators modernize their security infrastructure without upfront costs, facilitating multi-site rollouts [9] - The introduction of new compression technology reduces bandwidth consumption by up to 50%, supporting more cameras per device and improving video quality [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory and long-term value creation strategy, reinforced by a $5 million share repurchase program [11] - The company is well-positioned with over $6 million in cash at quarter end, allowing for continued investment in growth and innovation [11][12] - Management highlighted a strong operational execution and a focused vision, achieving record revenue and industry recognition [37][38] Other Important Information - The company processed over 8 million videos per day, indicating strong operational leverage and positioning for continued margin improvement [8] - The company received the PropTech Breakthrough Award for its Alpha Mobile Surveillance Trailer, showcasing innovation in AI-driven security solutions [10] Q&A Session Summary Question: Expectations for revenue recognition from contracts signed - Management explained that contracts signed include hardware, installation, and service components, with revenue recognized as installations are completed and SaaS components recognized over 12 months [18][19] Question: Growth rates and attach rates for remote guarding - Management noted that remote guarding has become a significant part of service revenue, with an increasing attach rate as customers recognize its value [22][23] Question: Expansion plans with existing customers - Management indicated that they are in the second or third inning of expansion with existing customers, seeing continued acquisition of new logos and expansion within current portfolios [25][27] Question: Installation capacity and servicing demand - Management confirmed that they utilize a network of third-party installers to meet demand and are expanding this network to ensure timely installations [29][31]

Core Insights - Cloudastructure reported a significant 272% year-over-year increase in revenue for Q3 2025, reaching $1.45 million, driven by the adoption of AI-driven surveillance solutions and expanding recurring revenue streams [1][12] - The company signed contracts totaling $4.79 million year-to-date, more than triple the total for the full year of 2024, indicating strong contract momentum [1][6] - A strategic customer financing partnership was launched to eliminate high upfront costs, facilitating larger-scale projects and faster revenue recognition [3][6] Financial Performance - Total revenue increased to $1.45 million in Q3 2025 from $390,000 in Q3 2024, with notable increases in various segments: Remote Guarding services revenue rose by 154%, hardware sales increased by 144%, and cloud video surveillance subscriptions grew by 142% [12][11] - Gross profit surged to $720,000 in Q3 2025, compared to $64,000 in the same period last year, reflecting improved economies of scale and higher-margin recurring revenue [13] - Despite the revenue growth, the net loss for Q3 2025 was $2.06 million, up from $1.72 million in Q3 2024, as the company continued to invest in sales, marketing, and product development [14] Technological Advancements - Cloudastructure introduced advanced compression technology that reduces bandwidth consumption by up to 50%, allowing customers to support more cameras per edge device and improving scalability [5][6] - Enhancements to the AI analytics platform improved detection accuracy and reduced false positives, enabling faster operator response times [4][6] - New automation and adaptive learning capabilities were added to the AI platform, enhancing analytics performance and system scalability [7] Market Expansion and Recognition - The company is experiencing rapid adoption of its solutions across multifamily and commercial portfolios, including luxury developments [6][9] - Cloudastructure's Alpha™ Mobile Surveillance Trailer was recognized as Project Management Solution of the Year at the 2025 PropTech Breakthrough Awards, highlighting its innovation in modular surveillance technologies [9][6] - The company successfully deployed its AI Surveillance and Remote Guarding solutions across two luxury multifamily properties in Columbia, Maryland, marking a significant engagement with a major multifamily operator [8][6] Operational Strength - The number of properties serviced increased by 83%, indicating strong operational growth [11] - The company has authorized a share repurchase program, reflecting confidence in its long-term growth strategy and financial strength [10][6]

Revenue Growth - Total revenue for the three months ended September 30, 2025, increased by $1,060,140 or 272% compared to the same period in 2024, reaching $1,450,470[93] - Total revenue for the nine months ended September 30, 2025, increased by $2,354,699 or 255%, reaching $3,278,483 compared to $923,784 for the same period in 2024[101] - Cloud video subscriptions increased by 142%, remote guarding by 154%, hardware sales by 144%, and installation sales and other sales by 790% over the same period in 2024[93] Cost and Expenses - Cost of goods sold for the three months ended September 30, 2025, increased by $404,488 or 124% compared to the same period in 2024, totaling $730,799[94] - Cost of goods sold for the nine months ended September 30, 2025, increased by $1,056,571 or 138%, totaling $1,824,700[103] - Operating expenses for the three months ended September 30, 2025, were $2,703,618, an increase of 64% compared to $1,648,764 for the same period in 2024[95] - General and administrative expenses for the nine months ended September 30, 2025, increased by 80% to $1,853,076 compared to $1,029,790 for the same period in 2024[105] - Research and development expenses for the nine months ended September 30, 2025, increased by 37% to $1,430,839 compared to $1,045,638 for the same period in 2024[106] Net Loss - The net loss for the three months ended September 30, 2025, was $2.06 million, compared to a net loss of $1.72 million for the same period in 2024, representing a 14% increase in loss[100] - The company reported a net loss of $6.6 million for the nine months ended September 30, 2025, an increase of approximately 23% compared to a net loss of $5.29 million for the same period in 2024[109] Cash Flow and Financing - Net cash used in operating activities was $5.66 million for the nine months ended September 30, 2025, compared to $3.32 million for the same period in 2024[112] - Cash and cash equivalents at the end of the period stood at $6.4 million, a significant increase from $444,000 at the end of September 30, 2024[112] - The company raised $12.1 million from financing activities for the nine months ended September 30, 2025, compared to a cash outflow of $261,000 for the same period in 2024[116] - The company anticipates incurring additional losses for the foreseeable future, with an accumulated deficit of approximately $47.38 million as of September 30, 2025[125] - The company expects its current cash will be sufficient to fund operations through at least the third quarter of 2026, but may require additional funding if revenues do not grow as anticipated[123] Investment Activities - Investing activities included $236,373 for colocation equipment for the Montana data center and $14,908 for computer equipment for new employees[115] - The company has entered into agreements that may provide necessary funding for operations over the next 12 months, subject to various conditions[124] Operational Challenges - The company continues to experience negative cash flows from operations due to investments in product and service development[113]

Core Insights - Cloudastructure has secured a six-figure enterprise contract to provide AI-driven security solutions for a national investment firm managing over 20,000 apartment units [1][2] - The partnership aims to modernize and unify security operations across the client's portfolio, starting with two multifamily communities in the western United States [2][3] - This initiative reflects a broader industry trend towards centralized security management in the multifamily sector, moving away from traditional property-by-property approaches [3][4] Company Overview - Cloudastructure is recognized as a leader in AI surveillance and remote guarding, utilizing a scalable cloud-based architecture that integrates advanced video surveillance and AI/ML analytics [5][6] - The company's platform offers a proactive, end-to-end security solution with a significant cost advantage, achieving up to 75% lower Total Cost of Ownership compared to traditional systems [6] Industry Trends - There is a growing momentum for AI-driven security solutions in the multifamily sector, particularly among major investment and property management firms seeking measurable ROI and enhanced brand reputation [3][4] - The shift towards smart, connected infrastructure in security is transforming the industry, enabling real-time insights and proactive incident prevention [4][6]

Core Viewpoint - Cloudastructure, Inc. will host a conference call on November 13, 2025, to discuss its financial results for the third quarter of 2025 and provide a business update [1]. Group 1: Conference Call Details - The conference call will be accessible via telephone for U.S. callers at +1 888-506-0062 and for international callers at +1 973-528-0011, with an access code of 603715 [2]. - A webcast of the call can be accessed through the company's investor relations website [2]. - A replay of the webcast will be available until November 13, 2026, and a telephone replay will be available until November 27, 2025 [3]. Group 2: Company Overview - Cloudastructure is headquartered in Palo Alto, California, and is recognized for its advanced AI surveillance and remote guarding solutions [4]. - The company's platform features a scalable cloud-based architecture with proprietary AI/ML analytics, enabling proactive security and a lower Total Cost of Ownership by up to 75% compared to other systems [4]. - Cloudastructure offers contract-free, month-to-month pricing and unlimited 24/7 support, enhancing its value proposition for enterprise businesses [4].

Core Insights - Cloudastructure, Inc. has entered into a Master Services Agreement with a national developer to enhance security across its multifamily portfolio, starting with an initial deployment in Denver, Colorado [1][2][3] - The partnership aims to address ongoing security challenges such as vandalism, trespassing, vehicle break-ins, and illegal dumping through AI-driven surveillance and remote guarding solutions [2][3] - The agreement establishes a framework for portfolio-wide expansion through 2026, indicating a long-term commitment to improving safety and operational efficiency [1][3] Company Overview - Cloudastructure is headquartered in Palo Alto, California, and is recognized for its advanced AI surveillance and remote guarding solutions [4] - The company's platform features cloud video surveillance with proprietary AI/ML analytics, enabling proactive, end-to-end security [4] - Cloudastructure offers a competitive value proposition with contract-free, month-to-month pricing and unlimited 24/7 support, achieving up to a 75% lower Total Cost of Ownership compared to other systems [4] Industry Context - The collaboration highlights the potential of AI-powered video analytics to transform affordable housing, indicating a significant market opportunity [3] - The partnership reflects a growing trend in the industry towards integrating technology for enhanced safety and community development [3]

[FORM 8-K General Information](index=1&type=section&id=FORM%208-K%20General%20Information) This section provides general information about the Form 8-K filing, including the registrant's details and filing purpose [Registrant Information](index=1&type=section&id=Registrant%20Information) This section identifies Cloudastructure, Inc. as the registrant, detailing its incorporation state, address, and contact information, along with its trading symbol and exchange - Cloudastructure, Inc. is incorporated in Delaware with its principal executive offices in Palo Alto, California[1](index=1&type=chunk) Trading Information | Title of Class | Trading Symbol | Name of Exchange On Which Registered | | :--------------- | :------------- | :----------------------------------- | | Class A Common Stock | CSAI | Nasdaq Capital Market | - The registrant is an 'Emerging Growth Company' as defined by Rule 405 of the Securities Act of 1933 and Rule 12b-2 of the Securities Exchange Act of 1934[4](index=4&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This item reports that Cloudastructure, Inc. issued a press release on October 15, 2025, detailing its results of operations and financial condition, which is attached as an exhibit to this report - Cloudastructure, Inc. issued a press release on October 15, 2025, regarding its results of operations and financial condition[5](index=5&type=chunk) - The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K[5](index=5&type=chunk) [Item 9.01 Financial Statements, Pro Forma Financial Information, and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%2C%20Pro%20Forma%20Financial%20Information%2C%20and%20Exhibits) This section lists the exhibits filed as part of the Form 8-K, including the press release mentioned in Item 2.02 and the interactive data file for the cover page Exhibits Filed | Exhibit Number | Document | | :--------------- | :----------------------------------------------------------------------------------- | | 99.1 | Press Release dated October 15, 2025 | | 104 | Cover Page Interactive File (the cover page XBRL tags are embedded in the Inline XBRL document). | [Exhibit Index](index=3&type=section&id=Exhibit%20Index) This index provides a formal listing of all exhibits included in the Form 8-K filing, detailing the exhibit number and a brief description of each document Exhibit Listing | Exhibit Number | Document | | :--------------- | :----------------------------------------------------------------------------------- | | 99.1 | Press Release dated October 15, 2025 | | 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). | [SIGNATURES](index=4&type=section&id=SIGNATURES) This section confirms the due authorization and signing of the report on behalf of Cloudastructure, Inc. by its Chief Financial Officer - The report was signed on October 21, 2025, by Greg Smitherman, Chief Financial Officer of Cloudastructure, Inc[12](index=12&type=chunk) - Greg Smitherman serves as both the Principal Financial Officer and Principal Accounting Officer for the registrant[12](index=12&type=chunk)

Core Viewpoint - Cloudastructure, Inc. has announced a share repurchase program authorizing the buyback of up to $5 million of its common stock, reflecting confidence in the company's long-term outlook and commitment to shareholder value [1][2] Company Overview - Cloudastructure is a leader in AI Surveillance and Remote Guarding, utilizing a scalable cloud-based architecture with advanced AI/ML analytics for security solutions [3] - The company offers a value proposition that avoids proprietary hardware, providing contract-free, month-to-month pricing and unlimited 24/7 support, achieving up to 75% lower Total Cost of Ownership compared to other systems [3] Financial Performance - The company has seen a record-breaking sales performance, tripling its full-year 2024 signed contract total within the first nine months of 2025 [2] - The share repurchase program is viewed as a strategic use of capital that aligns with both near-term goals and long-term vision [2] Market Position - There is a rapid expansion of Cloudastructure's customer base, indicating growing market demand for intelligent, cloud-native security solutions [2] - The company is focused on executing its core growth strategy, which includes product innovation, customer base expansion, and operational efficiency [2]

Core Insights - Cloudastructure, Inc. has reported a significant increase in signed contracts, reaching approximately $4.79 million year-to-date, which is more than three times the total of $1.5 million for the full year of 2024 [1] - The company achieved over $1.0 million in new contracts in September 2025 alone, contributing to a total of more than $2.0 million in signed contracts for the third quarter [1] Company Performance - The record-setting performance of Cloudastructure indicates a strong market adoption of its AI surveillance and remote guarding solutions, showcasing the scalability of its advanced technology platform [2] - The company processes around 8 million videos daily, equating to approximately 8,200 videos per minute or nearly 100 videos per second, while simultaneously reducing processing costs [2] Strategic Vision - The Chief Revenue Officer highlighted that 2025 is a pivotal year for Cloudastructure, driven by rising demand for smarter security solutions and customer confidence in the company's vision for an AI-powered ecosystem [3] - The company's cloud architecture and operational efficiencies are enabling scalable and profitable growth, positioning it to integrate with next-generation technologies such as drones and robotic dogs [3] Technology and Value Proposition - Cloudastructure's security platform utilizes a scalable cloud-based architecture with advanced AI/ML analytics, allowing enterprise businesses to achieve proactive, end-to-end security [4] - The platform offers a competitive advantage by avoiding proprietary hardware and providing contract-free, month-to-month pricing, along with unlimited 24/7 support, resulting in up to a 75% lower Total Cost of Ownership compared to other systems [4]

Core Insights - Cloudastructure, Inc. has been selected to provide security services for two luxury multifamily properties in Columbia, Maryland, marking its first engagement with a major multifamily operator in the U.S. [1][2] - The operator aims to enhance security as a differentiator for residents while reducing on-premises guard expenses through Cloudastructure's AI-powered surveillance and remote guarding services [2][4] - The 2024 National Apartment Association Resident Survey indicates that only 13% of residents live in properties with monitored cameras, yet those residents feel safer and are 17% more likely to recommend their community [3] Company Overview - Cloudastructure is headquartered in Palo Alto, California, and offers a cloud-based security platform featuring AI/ML analytics and remote guarding solutions [5][7] - The platform enables businesses to achieve proactive security and offers a value proposition that avoids proprietary hardware, providing contract-free, month-to-month pricing and 24/7 support [5][7] - The company claims its system can achieve up to a 75% lower Total Cost of Ownership compared to other systems, enhancing situational awareness and crime prevention [5][7] Market Positioning - The CEO of Cloudastructure emphasizes that security is now a key brand positioning element, with luxury operators recognizing safety as a valued amenity that differentiates them in a competitive market [4] - Cloudastructure's platform has a deterrence rate of over 98% for threatening activities, which helps prevent theft, trespassing, and confrontations [4]