AvidXchange (AVDX) - 2025 Q2 - Quarterly Results

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 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] Second Quarter 2025 Key Business Metrics and Highlights 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 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] - The company will not hold a teleconference to discuss Q2 2025 results due to its pending acquisition by TPG in partnership with Corpay[4] About AvidXchange 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] - The company's SaaS-based platform digitizes and automates AP workflows for over 8,500 businesses[5] - AvidXchange has made payments to more than 1,350,000 supplier customers over the past five years[6] 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 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] - 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][12] - Management uses non-GAAP measures for evaluating operating performance and for internal planning and forecasting, believing they indicate underlying business trends[12] 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 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 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 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 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 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] Adjusted EBITDA Reconciliation 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] - Transaction and acquisition-related costs for Q2 2025 were $6.45 million, related to the proposed merger[26] Additional Information This section provides important disclosures regarding forward-looking statements and details for investor communication and information access Forward-Looking Statements 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] - 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] - AvidXchange's SEC filings, including its Annual Report on Form 10-K, contain discussions of these risks[7] Investor Information 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] - 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]