PSQ (US:PSQH)2025-05-08 20:17Financial 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].