Group 1 - PSQ Holdings, Inc. reported a quarterly loss of $0.18 per share, better than the Zacks Consensus Estimate of a loss of $0.27, representing an earnings surprise of +33.33% [1] - The company posted revenues of $7.08 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 21.04%, compared to year-ago revenues of $5.99 million [2] - PSQ Holdings, Inc. shares have declined approximately 56.8% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is -$0.27 on revenues of $11.8 million, and for the current fiscal year, it is -$0.90 on revenues of $42.03 million [7] - The Zacks Industry Rank for Internet - Commerce is currently in the bottom 33% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Financial Data and Key Metrics Changes - The company reported net revenue of $7.1 million for Q2 2025, an 18% year-over-year increase compared to $6 million in Q2 2024 [5][6] - The net loss for 2025 improved by 46%, decreasing from $23.8 million to $12.8 million [8][13] - Gross margin in Q2 was 53%, down from 67% in Q2 of the previous year, primarily due to revenue mix changes [9][10] Business Segment Performance - Financial Technology segment earned $3.4 million in revenue, a 15.6% increase year-over-year [6] - The credit business revenue declined year-over-year, but AI-driven underwriting improved performance, reducing first payment default rates by 74.8% [7] - Brands segment, driven primarily by EveryLife, earned $3.3 million, a 45.5% increase compared to the prior period [7] Market Data and Key Metrics Changes - Marketplace revenue was $300,000, which was lower than expected due to a halt in marketing spend leading up to the Made in America Marketplace launch [7] Company Strategy and Development Direction - The company is focusing on monetizing EveryLife and the marketplace while concentrating on growing as a financial technology company [20][21] - Plans to build and deploy cryptocurrency solutions to empower consumers and merchants, opening new high-margin revenue streams [27][28] - The strategic reorganization is expected to save approximately $11 million annually, with $9 million realized in the first half of 2025 [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic repositioning of the business to unlock growth potential and deliver shareholder value [22][29] - The company is optimistic about the future of its fintech model, driven by overwhelming demand from aligned merchants and consumers [23][24] Other Important Information - The company held $20.6 million in cash and cash equivalents as of June 30, 2025, with $4 million outstanding on its revolving line of credit [11][12] - The company filed an at-the-market offering (ATM) and sold 164,971 shares to cover the costs of establishing the ATM [12][50] Q&A Session Summary Question: Is the onboarding of payment customers still on track for significant ramp-up in the second half of the year? - Management confirmed that the onboarding is taking longer than anticipated due to increased demand for bundled checkout offerings, but expects material revenue growth in the second half [31][33] Question: When did the official process for the EveryLife potential sale start, and what interest has been received? - The process started recently, and preliminary conversations have been positively received, with expectations for an accretive deal [35][36][38] Question: Can you expand on AI-driven initiatives in credit and their impact on operations and cost structure? - AI has been instrumental in improving efficiency and underwriting quality, leading to better delinquency and charge-off rates [40][41][46] Question: What is the board doing to help move Public Square forward? - The board is actively involved in operations and strategy, providing invaluable guidance in technology, marketing, and economic structuring [52][56] Question: What specific strategy is Public Square pursuing to sustainably increase profitability? - The company believes that pursuing profitability aligns with its core values, enhancing merchant onboarding and customer service [57][58] Question: Where does Public Square stand on cryptocurrency adoption and treasury strategy? - The company is excited about recent regulatory clarity and is focused on productizing cryptocurrency solutions while ensuring a strategic treasury approach [59][62]

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents the interim condensed consolidated financial statements and management's discussion and analysis for the period ended June 30, 2025 [Interim Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Unaudited interim financials for Q2 2025 show increased revenues, reduced net loss, and a strategic pivot to FinTech [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$65.5 million** by June 30, 2025, driven by reduced cash and equity Condensed Consolidated Balance Sheet Highlights (Unaudited) | Metric | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash and cash equivalents | 20,577,116 | 36,324,354 | | Total current assets | 32,176,723 | 46,837,162 | | Total assets | 65,454,999 | 74,893,841 | | Total current liabilities | 10,851,602 | 8,624,419 | | Total liabilities | 43,003,606 | 48,043,635 | | Total stockholders' equity | 22,451,393 | 26,850,206 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues grew **18%** to **$7.1 million**, with net loss improving to **$8.4 million** Q2 Financial Performance (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | YoY Change | | :--- | :--- | :--- | :--- | | Revenues, net | 7,082,868 | 5,985,228 | +18.3% | | Operating loss | (8,056,740) | (14,031,505) | -42.6% | | Net loss | (8,365,980) | (11,235,246) | -25.5% | | Net loss per share | (0.18) | (0.36) | -50.0% | H1 Financial Performance (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | YoY Change | | :--- | :--- | :--- | :--- | | Revenues, net | 13,832,489 | 9,451,117 | +46.4% | | Operating loss | (19,746,078) | (28,939,456) | -31.8% | | Net loss | (12,813,325) | (23,812,077) | -46.2% | | Net loss per share | (0.29) | (0.80) | -63.8% | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw reduced cash used in operations, but a significant decrease in financing cash Cash Flow Summary (Six Months Ended June 30) | Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (11,285,556) | (16,939,551) | | Net cash (used in) provided by investing activities | (4,698,645) | 52,272 | | Net cash provided by financing activities | 278,824 | 8,191,167 | | **Net decrease in cash** | **(15,705,377)** | **(8,696,112)** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Details business segments, liquidity, a software acquisition, and a strategic pivot to FinTech - The company operates under three segments: Financial Technology (Credova BNPL and PSQ Payments), Marketplace (e-commerce and advertising), and Brands (EveryLife baby products)[20](index=20&type=chunk)[22](index=22&type=chunk)[24](index=24&type=chunk) - Despite a net loss of **$12.8 million** and negative operating cash flow of **$11.3 million** for the first six months of 2025, management believes existing cash of **$20.6 million** is sufficient to fund operations for the next year[27](index=27&type=chunk)[28](index=28&type=chunk) - In April 2025, the company acquired software assets and intellectual property for **$5.1 million** (paid in stock and potential earn-outs) to enhance its payment service offerings[62](index=62&type=chunk)[63](index=63&type=chunk) - Subsequent to the quarter, on August 12, 2025, the company announced a major strategic shift to accelerate FinTech growth by monetizing its Brands segment and pursuing a sale or strategic partnership for its Marketplace segment[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 performance, strategic pivot to FinTech, and liquidity [Recent Developments and Strategic Updates](index=31&type=section&id=Recent%20Developments%20and%20Strategic%20Updates) Key board appointments and a strategic repositioning to prioritize the FinTech segment - Announced a strategic repositioning to focus on accelerating the growth of the FinTech segment[135](index=135&type=chunk) - As part of the new strategy, the company plans to monetize its Brands segment and pursue a sale or strategic partnership for its Marketplace segment[135](index=135&type=chunk) - Appointed Caitlin Long, a renowned Bitcoin and cryptocurrency finance expert, to its Board of Directors to support its Digital Asset Treasury Strategy[125](index=125&type=chunk)[133](index=133&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased **18%** to **$7.1 million**, with operating loss reduced by **43%** Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 ($) | Q2 2024 ($) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues, net | 7,082,868 | 5,985,228 | 1,097,640 | 18% | | Total costs and expenses | 15,139,608 | 20,016,733 | (4,877,125) | (24)% | | Operating loss | (8,056,740) | (14,031,505) | 5,974,765 | (43)% | | Net loss | (8,365,980) | (11,235,246) | 2,869,266 | (26)% | - General and administrative expenses decreased by **$5.0 million (46%)** in Q2 2025, primarily due to a **$4.3 million** reduction in share-based compensation expense related to a modification for the former CFO[178](index=178&type=chunk) - Sales and marketing expenses decreased by **$2.3 million (45%)** in Q2 2025, driven by a **$1.2 million** reduction in advertising campaigns and a **$0.9 million** decrease in share-based compensation[180](index=180&type=chunk) [Key Business Metrics](index=35&type=section&id=Key%20Business%20Metrics) FinTech credit GMV declined **19%**, while PSQ Payments generated **$68.2 million** in Q2 2025 Financial Technology Segment GMV (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | % Change | | :--- | :--- | :--- | :--- | | GMV - Credit | 10,713,373 | 13,277,530 | (19)% | | GMV - PSQ Payments | 68,171,847 | 0 | 100% | - The decline in GMV-Credit was driven by a slowdown in the firearm retail industry and the company's focus on disciplined underwriting, with U.S. firearm sales falling for the fourth consecutive year in 2024[163](index=163&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Cash decreased to **$20.6 million**, but management deems it sufficient for the next 12 months - The company had **$20.6 million** in cash and cash equivalents as of June 30, 2025[193](index=193&type=chunk) - Net cash used in operating activities was **$11.3 million** for the six months ended June 30, 2025[192](index=192&type=chunk) - Management believes existing cash and cash equivalents are sufficient to fund operations and capital needs for the next year[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, PSQ Holdings, Inc. is exempt from providing this information - The company is a smaller reporting company and is not required to provide information for this item[207](index=207&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a material weakness, with remediation efforts underway - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting[208](index=208&type=chunk) - Remediation efforts include enhancing review processes for complex transactions, providing continuing education, automating processes, and hiring additional staff[209](index=209&type=chunk) [PART II—OTHER INFORMATION](index=44&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This part covers legal proceedings, risk factors, and exhibits for the reporting period [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Credova is responding to CFPB inquiries regarding lease products, potentially leading to enforcement - Credova is responding to inquiries from the Consumer Financial Protection Bureau (CFPB) regarding its lease products, which could lead to an enforcement action[120](index=120&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the prior Annual Report on Form 10-K - No material changes to risk factors were reported since the last Annual Report on Form 10-K[213](index=213&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) Lists exhibits filed, including corporate governance, material agreements, and certifications

Core Insights - The article focuses on the ProShares Short QQQ ETF (NYSEARCA: PSQ), which aims to provide inverse returns to the Nasdaq 100 on a daily basis [1] Group 1 - The ProShares Short QQQ ETF is designed to replicate inverse performance relative to the Nasdaq 100 index [1]

Core Insights - PSQ Holdings, Inc. reported a quarterly loss of $0.24 per share, better than the Zacks Consensus Estimate of a loss of $0.30, and an improvement from a loss of $0.37 per share a year ago, indicating a 20% earnings surprise [1] - The company generated revenues of $6.75 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.32%, but showing growth from $3.47 million in the same quarter last year [2] - PSQ Holdings' shares have declined approximately 60.1% year-to-date, contrasting with the S&P 500's decline of 4.3% [3] Financial Performance - Over the last four quarters, PSQ Holdings has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.28 on revenues of $8.97 million, and for the current fiscal year, it is -$1.13 on revenues of $42.26 million [7] Market Outlook - The company's earnings outlook and management's commentary on the earnings call will be crucial for future stock price movements [3][4] - The Zacks Industry Rank places the Internet - Commerce sector in the top 30% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 grew by 95% year over year to $6,750,000 compared to $3,470,000 in Q1 2024 [5][27] - Operating expenses decreased by 10% year over year from $16,100,000 in Q1 2024 to $14,400,000 in Q1 2025 [6][29] - Gross margin expanded to 58% in Q1 2025 from 43% in Q1 2024 [8][27] Business Line Data and Key Metrics Changes - The FinTech division contributed $3,050,000 to revenue, while the brand segment contributed $3,270,000 [5] - The Public Square marketplace added just over $400,000 in revenue [5] - Subscription orders in the EveryLife brand accounted for 68% or $2,200,000 of Q1 revenue, indicating strong repeat customer strength [23] Market Data and Key Metrics Changes - The buy now pay later segment saw a slight dip in originations volume due to seasonal shifts post-Christmas [12] - The database of prequalified applicants for the buy now pay later services grew by 198,196 in Q1 [13] Company Strategy and Development Direction - The company is focusing on integrating synergies between its payments and marketplace segments, emphasizing a Made in America product assortment [17][20] - The strategy includes leveraging AI tools to enhance underwriting and mitigate risks, which is seen as critical for future growth [16] - The company aims to turn operating cash flow positive by the end of 2025 while maintaining a focus on reducing operating expenses [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for their payment processing services, particularly from merchants facing cancellations from other providers [33] - The company anticipates significant revenue growth in the latter half of 2025 as it ramps up its marketplace and payment services [24] - Management highlighted the importance of grassroots marketing and community engagement as key drivers for growth [19] Other Important Information - The company has made strategic decisions to purchase leases and retain high-quality consumer receivables, totaling $1,100,000 in cash outflows [28] - A new line of credit is expected to reduce the cost of capital by approximately 50% by the end of Q3 2025 [17] Q&A Session Summary Question: Can you talk about the surprises, both favorable and unfavorable, on your payments rollout? - Management noted overwhelming demand for payment services, driven by merchants seeking reliable solutions after being dropped by other providers [32][33] - A challenge mentioned was the need for merchants to prioritize their technology replacements, which could slow down onboarding [36] Question: How should we think about your product pipeline and plans to move beyond baby and feminine hygiene? - Future product development is driven by customer feedback, with a focus on expanding into home essentials [40][42] Question: Could you talk about some of the cross-selling you've been working on? - Currently, 90% of synergies are from buy now pay later to payments, with plans to shift focus to marketplace merchants in the second half of the year [46][49] Question: What specific milestones or developments does Public Square anticipate could drive profitability? - Key milestones include onboarding signed GMV and the organic growth of the Public Square marketplace [62][63] Question: Will you ever accept Bitcoin as a form of payment on your platform? - Management expressed strong interest in exploring nontraditional payment methods, including Bitcoin and stable coins, as part of their future strategy [76][78]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 grew by 95% year over year to $6,750,000 compared to $3,470,000 in Q1 2024 [4][25] - Operating expenses decreased by 10% year over year from $16,100,000 in Q1 2024 to $14,400,000 in Q1 2025 [25] - Gross margin expanded to 58% in Q1 2025 from 43% in Q1 2024 [25] Business Line Data and Key Metrics Changes - The FinTech division contributed $3,050,000 to revenue, while the brand segment contributed $3,270,000 [4] - Sales and marketing expenses decreased by 48% year over year, indicating improved efficiency in customer acquisition [6] - The EveryLife brand saw over 40% year-over-year revenue growth, with subscription orders accounting for 68% of Q1 revenue [21] Market Data and Key Metrics Changes - The buy now pay later segment experienced a slight dip in originations volume due to seasonal shifts, but new merchant onboarding increased significantly [12] - The database of prequalified applicants for buy now pay later services grew by 198,196 in Q1 [12] Company Strategy and Development Direction - The company is focusing on integrating synergies between its payments and marketplace segments to enhance growth [15][16] - A strategic emphasis on Made in America products is set to differentiate the marketplace and capitalize on economic nationalism [18][20] - The company plans to leverage AI tools to enhance underwriting and mitigate risks in its credit strategy [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving operating cash flow positivity by the end of the year, supported by revenue growth and reduced operating expenses [62] - The company anticipates significant revenue growth in the second half of 2025 as it ramps up its marketplace and fintech offerings [22] Other Important Information - The company ended Q1 with cash and cash equivalents of $28,000,000 and $200,000 in restricted cash [26] - A new line of credit is expected to reduce the cost of capital by approximately 50% by the end of Q3 [15] Q&A Session Summary Question: What surprises, both favorable and unfavorable, occurred during the payments rollout? - Management noted overwhelming demand for payment services, driven by merchants seeking reliable solutions after being dropped by other providers [30][32] - A challenge faced was merchants assessing multiple tools, which affected the speed of onboarding [34] Question: How should the product pipeline for the brands division be viewed? - The company is focusing on expanding into home essentials based on customer feedback, moving beyond baby and feminine hygiene products [36][41] Question: What cross-selling efforts are being made between the payments platform and other services? - Currently, 90% of synergies are from buy now pay later to payments, with plans to increase marketplace integration in the second half of the year [46][48] Question: What milestones could drive profitability and shareholder value in the next 12 to 18 months? - Key milestones include onboarding signed GMV and organic growth in the marketplace, with a focus on margin expansion in the brands division [62][63] Question: Will the company accept Bitcoin as a payment method? - The company is exploring the use of stable coins and intends to integrate nontraditional payment methods, including Bitcoin, in the future [76][79]

Financial Performance - For the three months ended March 31, 2025, the company's net loss was $4.4 million, a decrease of $8.1 million compared to a net loss of $12.6 million for the same period in 2024[125]. - Revenue increased by $3.3 million year-over-year, contributing to the reduced net loss[125]. - Total revenues, net for the three months ended March 31, 2025, increased by $3.3 million, or 95%, to $6,749,621 compared to $3,465,889 in 2024[156][158]. - Operating loss improved by $3.2 million, or 22%, to $(11,689,338) for the three months ended March 31, 2025, compared to $(14,907,951) in 2024[156]. - The company reported a net loss of $4.4 million for the three months ended March 31, 2025, compared to a net loss of $12.6 million in the same period in 2024, marking an improvement of 65%[156][170]. - For the three months ended March 31, 2025, the GAAP operating loss was $11,689,338, compared to a loss of $14,907,951 in the same period of 2024, indicating an improvement of approximately 21%[180]. - The non-GAAP operating loss for the same period was $4,884,011, significantly higher than the non-GAAP loss of $1,963,204 in 2024, reflecting a deterioration of approximately 148%[180]. Gross Merchandise Volume (GMV) - Gross merchandise volume (GMV) for the Financial Technology segment was $11.4 million for the three months ended March 31, 2025, representing a 33% decrease compared to $16.9 million in the same period of 2024[149]. - GMV for PSQ Payments reached $36.0 million for the three months ended March 31, 2025, marking a 100% increase as it was not previously reported[149]. - The top five merchants represented approximately 58% of total GMV - Credit for the three months ended March 31, 2025, up from 40% in the same period of 2024[151]. - The largest merchant accounted for 23% of total GMV - Credit in Q1 2025, compared to 15% in Q1 2024[151]. - GMV - Credit declined year-over-year due to a broader slowdown in the firearm retail industry, with some merchant partners reporting sales down over 20% year-over-year[152]. - For the three months ended March 31, 2025, GMV - PSQ Payments was $36.0 million, representing a 100% increase compared to zero in the same period in 2024[153]. Operating Expenses - Operating expenses are expected to increase in absolute dollar amounts but decline as a percentage of revenue due to cost-saving measures[137]. - Research and development expenses are anticipated to rise in absolute dollars as the company focuses on enhancing its platform and payment ecosystem[140]. - The company expects general and administrative expenses to increase in absolute dollars but decline as a percentage of total revenue over time[138]. - Research and development expenses increased by $0.3 million, or 26%, for the three months ended March 31, 2025, primarily due to contractor expenses for software development in the FinTech segment[163]. - Depreciation and amortization expense increased by $0.9 million, or 308%, for the three months ended March 31, 2025, primarily related to the amortization of capitalized software development costs[164]. - Corporate costs not allocated to segments decreased from $5,355,542 in 2024 to $1,971,372 in 2025, representing a reduction of approximately 63%[180]. - Share-based compensation, excluding transaction costs, decreased from $4,999,014 in 2024 to $3,622,845 in 2025, a reduction of about 27.5%[180]. - Depreciation and amortization increased from $296,597 in 2024 to $1,211,110 in 2025, marking an increase of approximately 308%[180]. Cash Flow and Financing - Net cash used in operating activities was $6.4 million for the three months ended March 31, 2025, a slight decrease from $6.5 million in 2024[175]. - As of March 31, 2025, the company had unrestricted cash and cash equivalents of $28.0 million, down from $36.3 million as of December 31, 2024[170]. - The company has financed its operations primarily through financing activities since inception[125]. - The company plans to invest in its FinTech segment, which is expected to increase revenues in the medium term while negatively impacting cash flow from operations in the short term[171]. Revenue Recognition - The company recognizes revenue from financial technology activities, including loan sales and interest earned, based on specific performance obligations[184]. - E-commerce revenues are recognized on a net basis, with commissions and processing fees recorded when transactions are confirmed[186]. - The company launched a CPM advertising model in June 2024, with revenue recognized based on impressions received[189]. - The company estimates expected credit losses over the contractual term of loans, incorporating adjustments for anticipated prepayments and defaults[197]. Off-Balance Sheet Arrangements - The company has not reported any off-balance sheet arrangements[181].

Financial Data and Key Metrics Changes - In Q4 2024, net revenue increased by 167% to $7.2 million compared to Q4 2023, with $3.5 million from the fintech segment, $0.6 million from the marketplace, and $3.1 million from EveryLife [41] - For the full year 2024, net revenue reached $23.2 million, a 308% increase over 2023, with fintech contributing $10.1 million, marketplace $2.9 million, and brands $10.2 million [42] - Gross margin improved significantly from 33% in 2023 to 61% in 2024 [43] Business Line Data and Key Metrics Changes - The fintech segment generated $10.1 million in revenue from the acquisition date of March 13 through the end of the year, with pro forma revenue estimated at $13 million if the acquisition had occurred on January 1 [42] - EveryLife brand revenue grew by 276% year-over-year, driven by a 76% increase in subscribers and a significant expansion of the ambassador program [16][18] - The marketplace saw a 34% increase in orders year-over-year during the holiday season, with conversion rates more than doubling despite reduced marketing spend [15] Market Data and Key Metrics Changes - The company secured payment processing contracts in 2024 that could potentially result in over $1 billion in annualized GMV [13] - The average order value in the buy now, pay later business was $1,194, significantly higher than competitors, with a 29% reduction in delinquencies and a 27% reduction in charge-offs [14] Company Strategy and Development Direction - The company aims to double revenue year-over-year in 2025, focusing on monetizing efforts from 2024 and expanding the fintech division [20][21] - A strategic emphasis will be placed on American-made products to capitalize on the growing demand for domestic manufacturing [29][30] - The brand division plans to launch a feminine care line under the EveryLife brand, responding to customer demand for high-quality, clean products [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from the increasing America-first sentiment in the economy, viewing tariffs as advantageous [47][48] - The company is focused on achieving positive unit economics across all divisions and aims to break even on cash flow in 2025 while prioritizing growth [72][76] Other Important Information - The company ended 2024 with cash and cash equivalents of $36.3 million and a principal balance of $3.8 million on its revolving line of credit [43] - The company signed a letter of intent for a new asset-backed lending facility, expected to reduce the cost of capital by approximately 50% [26] Q&A Session Summary Question: Can PSQ Holdings become a competitive cornerstone in the marketplace like Amazon? - Management believes tariffs will benefit the business, positioning it well to capitalize on the America-first sentiment [47][48] Question: What is the composition of the $2.5 billion in signed GMV and the timeline for revenue manifestation? - The signed GMV includes a mix of merchants, primarily from the firearms industry and other sectors, with onboarding expected to continue into Q1 and Q2 2025 [50][56] Question: What are the biggest cost drivers impacting margins and plans for operational efficiency? - Significant restructuring has streamlined operations, leading to lower operating expenses year-over-year while improving margins across divisions [95][98] Question: Will PSQ Holdings explore cryptocurrency acceptance? - The company is exploring a cryptocurrency strategy but has no announcements at this time [101][102] Question: What are the primary growth strategies for the next few years? - The focus will be on the fintech segment to meet demand, enhancing the marketplace's brand identity, and expanding the EveryLife product line [106][110]

Financial Data and Key Metrics Changes - In Q4 2024, net revenue increased by 167% to $7.2 million compared to Q4 2023, with $3.5 million from the fintech segment, $0.6 million from the marketplace, and $3.1 million from EveryLife [41] - For the full year 2024, net revenue reached $23.2 million, a 308% increase over 2023, with fintech contributing $10.1 million, marketplace revenue at $2.9 million, and brands revenue at $10.2 million [42] - Gross margin improved significantly from 33% in 2023 to 61% in 2024 [43] Business Line Data and Key Metrics Changes - The fintech segment generated $10.1 million in revenue from the acquisition date of March 13 through the end of the year, with pro forma revenue estimated at $13 million if the acquisition had occurred on January 1 [42] - EveryLife brand experienced a remarkable 276% year-over-year revenue growth, driven by a 76% increase in subscribers and a significant expansion of the ambassador program [16][18] - The marketplace saw a 34% increase in orders year-over-year during the holiday season, with conversion rates more than doubling despite reduced marketing spend [15] Market Data and Key Metrics Changes - The company secured payment processing contracts in 2024 that could potentially result in over $1 billion in annualized GMV [13] - The average order value in the buy now, pay later business was $1,194, significantly higher than competitors, with a 29% reduction in year-over-year delinquencies and a 27% reduction in charge-offs [14] Company Strategy and Development Direction - The company aims to double revenue year-over-year in 2025, focusing on monetizing efforts from 2024 and expanding the fintech division [20][21] - A strategic emphasis will be placed on integrating marketplace merchants into the fintech platform, enhancing the synergy between divisions [29][60] - The marketplace will prioritize American-made products, positioning itself competitively in an economy favoring domestic manufacturing [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from the increasing American-first sentiment in the economy, viewing tariffs as advantageous [48] - The company is focused on achieving positive unit economics across all divisions and anticipates breaking even on cash flow in 2025 [72][76] - Management highlighted the importance of leveraging cash for growth while balancing profitability, indicating a strong pipeline in the fintech business [73][75] Other Important Information - The company ended 2024 with cash and cash equivalents of $36.3 million and a principal balance of $3.8 million on its revolving line of credit [43] - The company is exploring cryptocurrency payment options but has no immediate announcements [101][102] Q&A Session Summary Question: Can PSQ Holdings become a competitive cornerstone in the marketplace like Amazon? - Management believes tariffs will benefit the business, positioning it well to capitalize on the American-first sentiment [48] Question: What is the composition of the $2.5 billion in signed GMV and the timeline for revenue manifestation? - The signed GMV includes a mix of merchants, primarily from the firearms industry and other sectors, with onboarding expected to continue into Q1 and Q2 2025 [55][56] Question: What are the biggest cost drivers impacting margins and plans for operational efficiency? - Significant restructuring has led to lower operating expenses year-over-year, with improved margins across divisions due to strategic changes [95][96] Question: What are the primary growth strategies for the next few years? - The company aims to double revenue driven by the fintech segment, with a focus on integrating marketplace and fintech operations [105][106]