AvePoint(AVPT) - 2025 Q2 - Quarterly Report

FORM 10-Q Cover Page Identifies AvePoint, Inc. as the registrant for the Form 10-Q for the period ended June 30, 2025, including key corporate details Company Information Provides AvePoint, Inc.'s identification details, including filing type, period, and headquarters location - Registrant: AvePoint, Inc.[2] - Filing Type: Quarterly Report on Form 10-Q for the period ended June 30, 2025[2] - Headquarters: 525 Washington Blvd, Suite 1400, Jersey City, NJ 07310[2] Securities and Filer Status AvePoint, Inc.'s Common Stock is traded on The Nasdaq Global Select Market under the symbol AVPT, classified as a Large Accelerated Filer Securities Registered | Title of each class | Trading symbol | Name of each exchange on which registered | | :------------------ | :------------- | :---------------------------------------- | | Common Stock, par value $0.0001 per share | AVPT | The Nasdaq Global Select Market | | Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share | AVPTW | N/A(1) | - Warrants (AVPTW) were delisted from The Nasdaq Global Select Market on July 21, 2025, following redemption of all outstanding warrants[5] - Filer Status: Large accelerated filer[7] - Outstanding Common Stock: 211,926,808 shares as of August 1, 2025[8] TABLE OF CONTENTS Provides an organized overview of the report's structure, detailing all sections and their respective page numbers FORWARD-LOOKING STATEMENTS Contains important disclaimers regarding forward-looking statements, emphasizing inherent risks and uncertainties Disclaimer on Forward-Looking Statements Advises readers that the report contains forward-looking statements subject to risks, with no obligation to update - Forward-looking statements are identified by specific terminology such as 'believe,' 'project,' and 'expect'[13] - Readers are cautioned against undue reliance on forward-looking statements due to inherent risks and uncertainties[13] - The Company does not undertake to publicly update or revise forward-looking statements, except as legally required[14] PART I. FINANCIAL INFORMATION Presents AvePoint, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements Presents AvePoint, Inc.'s unaudited condensed consolidated financial statements and accompanying notes for the specified periods Condensed Consolidated Balance Sheets Details the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | Cash and cash equivalents | $429,816 | $290,735 | | Total current assets | $539,823 | $394,795 | | Total assets | $700,129 | $519,055 | | Total current liabilities | $228,229 | $222,955 | | Total liabilities | $256,994 | $248,107 | | Total stockholders' equity | $443,135 | $270,948 | - Cash and cash equivalents significantly increased from $290.7 million at December 31, 2024, to $429.8 million at June 30, 2025[20] - Total assets grew by approximately $181 million, while total liabilities saw a modest increase of about $8.9 million[20] Condensed Consolidated Statements of Income (Loss) Presents the company's financial performance, including revenue, gross profit, and net income (loss), for the specified periods Condensed Consolidated Statements of Income (Loss) Highlights (in thousands, except per 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 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $102,018 | $77,961 | $195,082 | $152,495 | | Gross profit | $75,539 | $59,019 | $144,704 | $113,111 | | Income (loss) from operations | $7,094 | $(2,138) | $10,381 | $(5,339) | | Net income (loss) | $2,893 | $(12,938) | $6,459 | $(14,892) | | Basic EPS | $0.01 | $(0.07) | $0.03 | $(0.08) | | Diluted EPS | $0.01 | $(0.07) | $0.03 | $(0.08) | - Total revenue increased by 30.9% for the three months and 27.9% for the six months ended June 30, 2025, year-over-year[22] - The company reported net income for both the three and six months ended June 30, 2025, reversing prior year losses[22] Condensed Consolidated Statements of Comprehensive Income (Loss) Details the company's comprehensive income (loss), including net income and other comprehensive income components Condensed Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands) | 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 income (loss) | $2,893 | $(12,938) | $6,459 | $(14,892) | | Foreign currency translation adjustments | $5,983 | $79 | $7,131 | $(399) | | Total comprehensive income (loss) | $8,871 | $(12,900) | $13,573 | $(15,432) | - Foreign currency translation adjustments significantly contributed to comprehensive income in 2025, with a positive impact of $5.98 million (3 months) and $7.13 million (6 months)[25] Condensed Consolidated Statements of Mezzanine Equity and Stockholders' Equity Outlines changes in mezzanine equity and stockholders' equity, reflecting capital transactions and net income Stockholders' Equity Changes (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :-------------------------------- | :----- | | Balance, December 31, 2024 | $270,948 | | Proceeds from exercise of options | $8,029 | | Stock-based compensation expense | $20,763 | | Proceeds from exercise of warrants | $159,471 | | Repurchase and retirement of common stock | $(18,953) | | Net income | $6,459 | | Foreign currency translation adjustments | $7,131 | | Balance, June 30, 2025 | $443,135 | - Total stockholders' equity increased from $270.9 million at December 31, 2024, to $443.1 million at June 30, 2025, driven by warrant exercises and stock-based compensation[28] - The company repurchased and retired 1,215,323 shares of common stock for $18.95 million during the six months ended June 30, 2025[28] Condensed Consolidated Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities for the specified periods Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $20,765 | $23,914 | | Net cash used in investing activities | $(30,332) | $(2,587) | | Net cash provided by (used in) financing activities | $146,794 | $(15,820) | | Net increase in cash and cash equivalents | $139,081 | $3,836 | | Cash and cash equivalents at end of period | $429,816 | $226,998 | - Net cash provided by financing activities significantly increased in 2025 to $146.8 million, primarily due to proceeds from warrant exercises[31] - Net cash used in investing activities increased substantially in 2025 to $30.3 million, mainly due to business acquisitions and noncontrolling interest repurchase[31] Notes to Condensed Consolidated Financial Statements Provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. Nature of Business and Organization Describes AvePoint, Inc.'s core business, its cloud-native data management platform, and corporate structure - AvePoint, Inc. provides the cloud-native 'AvePoint Confidence Platform' for data security, governance, and business continuity[35] - The company, incorporated in New Jersey in 2001 and redomiciled in Delaware in 2006, maintains global offices with headquarters in Jersey City, NJ[33][34] 2. Summary of Significant Accounting Policies Outlines the key accounting principles and estimates used in preparing the interim condensed consolidated financial statements - Unaudited interim condensed consolidated financial statements adhere to SEC rules and GAAP, with certain information condensed or omitted[36] - Management's estimates and assumptions impact financial statements, particularly for revenue recognition, goodwill, and stock-based compensation[40] - Cash and cash equivalents include short-term investments; $12.0 million of cash balances are subject to transfer limitations as of June 30, 2025[42] - Recent accounting pronouncements (ASU 2023-09 and ASU 2024-03/2025-01) are being evaluated for future financial statement impact[57][58] 3. Business Combination Details the acquisition of Ydentic Holding B.V. and its preliminary fair value allocation - On January 29, 2025, AvePoint acquired 80% of Ydentic Holding B.V. for approximately $20.4 million to expand SaaS solutions for MSPs[60] Preliminary Fair Value Allocation of Ydentic Acquisition (in thousands) | Item | Preliminary Allocation | | :-------------------------------- | :--------------------- | | Goodwill | $17,736 | | Intangible assets, net | $2,802 | | Total purchase consideration, net of cash acquired | $20,392 | - The purchase price allocation is preliminary and subject to change, with goodwill attributed to unqualifying intangible assets and expected synergies[63][66] - A mandatorily redeemable noncontrolling interest of $7.1 million was recognized for the remaining 20% of Ydentic, with $0.8 million interest expense recorded for the six months ended June 30, 2025[68][70] 4. Goodwill Presents the changes in goodwill carrying amounts, primarily due to acquisitions and foreign currency translation Goodwill Carrying Amounts (in thousands) | Item | Amount | | :-------------------------------- | :----- | | Balance, December 31, 2024 | $17,715 | | Acquisitions | $17,736 | | Effect of foreign currency translation | $3,367 | | Balance, June 30, 2025 | $38,818 | - Goodwill increased from $17.7 million at December 31, 2024, to $38.8 million at June 30, 2025, due to the Ydentic acquisition and foreign currency translation[73] 5. Intangible Assets, Net Details the net carrying amounts of intangible assets and related amortization expense Intangible Assets, Net (in thousands) | Category | June 30, 2025 (Net Carrying Amount) | December 31, 2024 (Net Carrying Amount) | | :-------------------------------- | :---------------------------------- | :------------------------------------ | | Technology and software | $7,806 | $5,460 | | Customer related assets | $3,763 | $3,293 | | Content | $0 | $136 | | Total | $11,569 | $8,889 | - Total net intangible assets increased from $8.9 million to $11.6 million from December 31, 2024, to June 30, 2025[74] - Amortization expense for intangible assets was $1.6 million for the six months ended June 30, 2025, up from $1.2 million in the prior year[74] 6. Accounts Receivable, Net Provides a breakdown of accounts receivable, net, including trade and unbilled receivables Accounts Receivable, Net (in thousands) | Component | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | Trade receivables | $71,628 | $68,007 | | Current unbilled receivables | $22,552 | $20,205 | | Allowance for credit losses | $(851) | $(847) | | Total Accounts receivable, net | $93,329 | $87,365 | - Accounts receivable, net, increased by approximately $6 million from December 31, 2024, to June 30, 2025, driven by trade and unbilled receivables[77] 7. Line of Credit Details the company's revolving line of credit and its compliance status - The Company maintains a revolving line of credit of up to $30.0 million with HSBC Bank USA, with an additional $20.0 million accordion feature[78] - As of June 30, 2025, the Company was compliant with all covenants and had no outstanding borrowings under the line of credit[78] 8. Income Taxes Presents the effective tax rates and factors influencing changes for the reported periods Effective Tax Rates | Period | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Three Months Ended June 30 | 57.8% | (42.1)% | | Six Months Ended June 30 | 44.9% | (67.2)% | - Effective tax rates for both three and six months ended June 30, 2025, significantly increased due to pre-tax income mix, foreign inclusions, and stock-based compensation[80][81] 9. Leases Details total lease costs and key lease terms for operating leases Total Lease Cost (in thousands) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total lease cost | $2,745 | $2,239 | $5,366 | $4,361 | - Total lease cost increased for both the three and six months ended June 30, 2025, reflecting higher lease liability and short-term lease expenses[84] - As of June 30, 2025, the weighted average remaining lease term for operating leases was 3.3 years, with total future lease payments of $20.6 million[87][90] 10. Commitments and Contingencies Outlines significant unconditional purchase commitments and class action settlement contributions - The Company has an unconditional purchase commitment of $96.0 million for IT solutions, with $17.3 million paid during the six months ended June 30, 2025[95] - A new unconditional purchase commitment of $15.0 million for additional IT solutions was signed in December 2024[96] - AvePoint contributed $1.4 million towards a $14.4 million class action settlement, with the remaining $13 million covered by insurance policies[100] 11. Warrant Liabilities Describes the reclassification and eventual elimination of private placement warrant liabilities - Private placement warrants were reclassified to additional paid-in capital by $1.5 million after conversion to public warrants on April 10, 2025[105] - As of June 30, 2025, no private placement warrants remained outstanding[106] 12. Stockholders' Equity Details changes in common stock, share repurchase programs, and warrant redemption activities - Common stock outstanding increased to 211,138,994 shares as of June 30, 2025, from 194,070,512 shares at December 31, 2024[108] - The Board of Directors renewed the Share Repurchase Program, authorizing up to $150 million in common stock buybacks for an additional three years[109] - During the six months ended June 30, 2025, the Company repurchased and retired 1,215,323 shares at an average price of $15.60 per share[109] - On June 11, 2025, the Company initiated redemption of all outstanding public warrants, with 13,866,954 warrants exercised for $159.5 million cash proceeds by June 30, 2025[113][114] - On May 30, 2025, AvePoint repurchased the remaining 23.9% noncontrolling interest in MaivenPoint Ptd. Ltd. for $12.1 million, making it a wholly-owned subsidiary[115] 13. Growth Equity Fund Describes AvePoint's commitment to a growth equity fund and its current financial impact - AvePoint committed $50.0 million as a limited partner to A3 Ventures Fund 1, L.P., established with Lumens Capital Partners Ltd. on February 28, 2024[116][117] - As of June 30, 2025, no portion of the $50.0 million commitment has been called, with no material financial impact from the Fund's operations[118] 14. Stock-Based Compensation Presents total stock-based compensation expense and unrecognized costs related to equity awards Total Stock-Based Compensation Expense (in thousands) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total expense | $11,143 | $10,538 | $20,763 | $19,996 | - As of June 30, 2025, $5.4 million in unrecognized compensation costs for unvested stock options and $69.5 million for unvested RSUs remain[124][129] - During the six months ended June 30, 2025, 1,495,597 stock options were exercised with an intrinsic value of $18.8 million, and 2,114,747 Time-Based RSUs and 301,842 PSUs were granted[125][129] 15. Fair Value Measurements Classifies financial assets and liabilities into a three-level fair value hierarchy based on input observability - Financial assets and liabilities are classified into a three-level fair value hierarchy based on input observability[130][131] Fair Value Measurements (June 30, 2025, in thousands) | Item | Level 1 | Level 2 | Level 3 | Total | | :-------------------------------- | :------ | :------ | :------ | :---- | | Cash Equivalents (Certificates of deposit, Money market funds, U.S. treasury bills) | $0 | $190,978 | $0 | $190,978 | | Short-term investments (Certificates of deposit) | $0 | $338 | $0 | $338 | | Other assets (Certificates of deposit, Notes receivables) | $0 | $206 | $4,304 | $4,510 | | Mandatorily redeemable noncontrolling interest | $0 | $0 | $6,903 | $6,903 | - The fair value of mandatorily redeemable noncontrolling interest ($6.9 million) and notes receivables ($4.3 million) are classified as Level 3[133][134][135] 16. Segment Information Confirms the company operates in a single segment and provides revenue breakdown by geographic area - The Company operates in a single operating segment, with the CEO assessing performance and allocating resources on a consolidated basis[139][140] Revenue by Geographic Area (in thousands) | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | North America | $39,571 | $31,697 | $76,023 | $61,592 | | EMEA | $31,822 | $23,089 | $61,306 | $45,895 | | APAC | $30,625 | $23,175 | $57,753 | $45,008 | | Total revenue | $102,018 | $77,961 | $195,082 | $152,495 | - Revenue from North America, EMEA, and APAC all showed significant growth for both the three and six months ended June 30, 2025[143] 17. Other (Expense) Income, Net Details the components of other (expense) income, net, and their impact on financial results Other (Expense) Income, Net (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Change in value of earn-out and warrant liabilities | $(65) | $(8,670) | $408 | $(7,180) | | Interest income, net | $1,371 | $37 | $1,072 | $71 | | Gain on securities | $1,975 | $2,336 | $3,906 | $4,753 | | Foreign currency exchange loss, net | $(3,416) | $(644) | $(3,746) | $(1,212) | | Other (expense) income, net | $(240) | $(6,970) | $1,346 | $(3,566) | - Other (expense) income, net, improved significantly from a net expense of $(6.97) million in Q2 2024 to $(0.24) million in Q2 2025, driven by favorable changes in earn-out and warrant liabilities and increased interest income[145] 18. Net Income (Loss) Per Share Presents basic and diluted net income (loss) per share and weighted average shares outstanding Net Income (Loss) Per Share (in thousands, except per share amounts) | 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 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net income (loss) available to common stockholders | $2,698 | $(12,809) | $6,138 | $(14,525) | | Basic EPS | $0.01 | $(0.07) | $0.03 | $(0.08) | | Diluted EPS | $0.01 | $(0.07) | $0.03 | $(0.08) | | Weighted average diluted shares | 229,179 | 182,804 | 226,951 | 182,150 | - Basic and diluted EPS turned positive to $0.01 for the three months and $0.03 for the six months ended June 30, 2025, reversing prior year losses[147] - Weighted average diluted shares outstanding increased significantly in 2025 due to the effect of dilutive securities such as stock options, RSUs, and warrants[147] 19. Subsequent Events Discloses significant events occurring after the reporting period, including new legislation - The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, with the Company assessing its impact on financial statements[151] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on AvePoint's financial condition, results of operations, liquidity, and cash flows for the periods presented, highlighting key business developments, financial performance, and operational trends Second Quarter 2025 Business Highlights Summarizes key business achievements and performance metrics for the second quarter of 2025 - AvePoint's cloud-native 'AvePoint Confidence Platform' unifies data security, governance, and business continuity, addressing challenges like AI optimization and data growth[156][157][158][160] Key Business Metrics (as of June 30, 2025) | Metric | Value | Change YoY | | :-------------------------------- | :------ | :--------- | | Total Annual Recurring Revenue (ARR) | $367.6M | 27% (27% adjusted for FX) | | Total Revenue (Q2 2025) | $102.0M | 31% (27% constant currency) | | SaaS Revenue (Q2 2025) | $77.3M | 44% (40% constant currency) | - The AvePoint Confidence Platform expanded with new Risk Posture, Optimization & ROI, and Resilience command centers, including advanced Agentic AI security features[159] - Named to Inc.'s Best Workplaces list for the second consecutive year[159] Components of Results of Operations Explains the primary revenue sources, cost of revenue, and operating expense categories - Revenue is generated from four primary sources: SaaS, term license and support, services, and maintenance, with recurring components[166] - SaaS revenue is recognized ratably over the contract term, while term license revenue is recognized upfront for the license component[167] - Cost of revenue includes direct costs for product delivery and support, personnel, hosting fees, and depreciation/amortization, expected to increase in absolute dollars[169] - Operating expenses, including Sales & Marketing, G&A, and R&D, primarily consist of personnel-related expenses and stock-based compensation, with planned investment for growth[170][173] Results of Operations Comparison (Three Months Ended June 30, 2025 vs 2024) Compares the company's financial performance for the three months ended June 30, 2025, against the prior year Revenue by Source (Three Months Ended June 30, in thousands) | Revenue Source | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | SaaS | $77,317 | $53,643 | $23,674 | 44.1% | | Term license and support | $8,922 | $10,983 | $(2,061) | (18.8)% | | Services | $14,486 | $10,517 | $3,969 | 37.7% | | Maintenance | $1,293 | $2,818 | $(1,525) | (54.1)% | | Total revenue | $102,018 | $77,961 | $24,057 | 30.9% | - SaaS revenue was the primary driver of total revenue growth, increasing 44.1% and representing 76% of total revenue in Q2 2025[175] Operating Expenses (Three Months Ended June 30, in thousands) | Expense Category | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | Sales and marketing | $35,773 | $30,470 | $5,303 | 17.4% | | General and administrative | $19,712 | $18,184 | $1,528 | 8.4% | | Research and development | $12,960 | $12,503 | $457 | 3.7% | - Income tax expense increased to $4.0 million in Q2 2025 from $3.8 million in Q2 2024, with the effective tax rate shifting from (42.1)% to 57.8%[189] Results of Operations Comparison (Six Months Ended June 30, 2025 vs 2024) Compares the company's financial performance for the six months ended June 30, 2025, against the prior year Revenue by Source (Six Months Ended June 30, in thousands) | Revenue Source | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | SaaS | $146,259 | $104,954 | $41,305 | 39.4% | | Term license and support | $20,112 | $20,988 | $(876) | (4.2)% | | Services | $25,423 | $20,998 | $4,425 | 21.1% | | Maintenance | $3,288 | $5,555 | $(2,267) | (40.8)% | | Total revenue | $195,082 | $152,495 | $42,587 | 27.9% | - Total revenue increased 27.9% to $195.1 million for the six months ended June 30, 2025, primarily driven by a 39.4% increase in SaaS revenue[192] Operating Expenses (Six Months Ended June 30, in thousands) | Expense Category | 2025 | 2024 | Change Amount | Change % | | :-------------------------------- | :----- | :----- | :------------ | :------- | | Sales and marketing | $70,295 | $60,409 | $9,886 | 16.4% | | General and administrative | $38,379 | $35,052 | $3,327 | 9.5% | | Research and development | $25,649 | $22,989 | $2,660 | 11.6% | - Income tax expense decreased to $5.3 million for the six months ended June 30, 2025, from $6.0 million in the prior year, with the effective tax rate changing from (67.2)% to 44.9%[205] Non-GAAP Financial Measures Presents non-GAAP operating income and margin, providing alternative performance insights Non-GAAP Operating Income and Margin (in thousands, except percentages) | 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 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | GAAP operating income (loss) | $7,094 | $(2,138) | $10,381 | $(5,339) | | Non-GAAP operating income | $18,783 | $8,749 | $32,156 | $15,359 | | Non-GAAP operating margin | 18.4% | 11.2% | 16.5% | 10.1% | - Non-GAAP operating margin significantly improved to 18.4% (Q2 2025) and 16.5% (YTD Q2 2025), driven by enhanced expense management and channel partner strategy scaling[209][210] Liquidity and Capital Resources Discusses the company's cash position, capital resources, and ability to meet future liquidity needs - As of June 30, 2025, AvePoint had $429.8 million in cash and cash equivalents and $0.3 million in short-term investments, with no outstanding debt[211] - The Company believes its existing cash, operating cash flows, and $30.0 million revolving line of credit are sufficient to meet liquidity needs for at least the next twelve months[214][215] Cash Flows Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | $20,765 | $23,914 | | Net cash used in investing activities | $(30,332) | $(2,587) | | Net cash provided by (used in) financing activities | $146,794 | $(15,820) | - Net cash provided by financing activities significantly increased in 2025 due to $157.7 million from warrant exercises, offsetting $19.0 million in common stock repurchases[223] - Net cash used in investing activities increased to $30.3 million in 2025, primarily due to business acquisitions and noncontrolling interest repurchase[220] Critical Accounting Policies and Estimates Highlights key accounting policies and estimates requiring significant management judgment in financial statement preparation - Financial statement preparation requires management estimates and assumptions, particularly for revenue recognition, goodwill, and stock-based compensation[232] - Revenue recognition involves judgment in determining distinct performance obligations and allocating transaction prices based on relative standalone selling price (SSP)[234][235] Economic Conditions, Challenges, and Risks Discusses the dynamic and competitive market, dependence on talent, and macroeconomic factors affecting the business - The software and cloud-based services markets are dynamic and highly competitive, requiring continuous evolution and adaptation, which may increase costs and decrease margins[237] - Success is highly dependent on attracting and retaining qualified global employees[238] - Demand for software and services correlates with dynamic and unpredictable global macroeconomic and geopolitical factors, potentially affecting trade, exchange rates, costs, sales, and earnings[239] Seasonality Explains the historical quarterly fluctuations in revenue and factors influencing these trends - Quarterly revenue fluctuates, with the first quarter historically the lowest and the fourth quarter the highest, though not indicative of future results[241] - The timing of new product/service introductions and revenue mix can significantly impact quarterly results due to differing revenue recognition principles[241] Recently Issued and Adopted Accounting Pronouncements (MD&A) Directs readers to relevant notes for information on recent accounting pronouncements - For information on recent accounting pronouncements, refer to Note 2 - Summary of Significant Accounting Policies in Part I, Item 1[242] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section details AvePoint's exposure to market risks, including interest rate risk, foreign currency exchange risk, and concentration of credit risk, and assesses their potential impact on the Company's financial condition and results of operations Interest Rate Risk Assesses the company's exposure to interest rate fluctuations and its potential financial impact - As of June 30, 2025, AvePoint held $430.1 million in cash, cash equivalents, and short-term deposits, primarily in cash deposits and money market funds[245] - Due to the short-term nature of instruments and no outstanding debt, the Company believes it has no material exposure to interest rate fluctuations[245] - A hypothetical 10% change in interest rates would not materially negatively impact the condensed consolidated financial statements[245] Foreign Currency Exchange Risk Details the company's exposure to foreign currency exchange rate fluctuations and their potential impact - AvePoint is exposed to foreign currency risks from revenue and operating expenses denominated in currencies other than the U.S. Dollar, primarily Euro, Singapore Dollar, Japanese Yen, Australian Dollar, and British Pound Sterling[246][247] - Revenues denominated in U.S. Dollar were approximately 37% of total revenues, and expenses in U.S. Dollar were approximately 49% of total expenses for the quarter ended June 30, 2025[248] - A hypothetical 10% increase in the U.S. Dollar against other currencies would result in an approximate $1.6 million decrease in income from operations for the quarter ended June 30, 2025[249] Concentration of Credit Risk Addresses the company's credit risk exposure related to cash deposits with financial institutions - The Company deposits cash with financial institutions, where balances may at times exceed federally insured limits[250] Item 4. Controls and Procedures This section reports on the effectiveness of AvePoint's disclosure controls and procedures and internal control over financial reporting as of June 30, 2025 Evaluation of Disclosure Controls and Procedures Concludes on the effectiveness of the company's disclosure controls and procedures as of June 30, 2025 - The CEO and CFO concluded that AvePoint's disclosure controls and procedures were effective as of June 30, 2025[253] - The condensed consolidated financial statements fairly present the financial position, results of operations, and cash flows in conformity with GAAP[254] Changes in Internal Control Over Financial Reporting States that no material changes occurred in internal control over financial reporting during the quarter - No material changes occurred in internal control over financial reporting during the quarter ended June 30, 2025[255] PART II. OTHER INFORMATION Contains additional information not covered in the financial statements, including legal proceedings and equity matters Item 1. Legal Proceedings This section states that AvePoint is not a party to any material asserted, ongoing, threatened, or pending claims, suits, assessments, proceedings, or other litigation, beyond those arising in the normal course of business, as of June 30, 2025 - As of June 30, 2025, the Company is not a party to any material legal proceedings beyond those in the normal course of business[257] Item 1A. Risk Factors This section refers readers to the risk factors previously disclosed in the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q for Q1 2025, noting no material changes to these risks - No material changes to the risk factors previously disclosed in the Annual Report and Q1 2025 10-Q[259] Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities This section confirms no unregistered sales of equity securities during the quarter and provides details on the Company's share repurchase program, including shares bought back and remaining authorization - No unregistered sales of equity securities occurred during the quarter ended June 30, 2025[261] - The Board of Directors renewed the Share Repurchase Program, authorizing up to $150 million in common stock buybacks for an additional three years[262] Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025) | Period | Total shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased | | :-------------------------------- | :--------------------- | :--------------------------- | :--------------------------------------------------------- | | April 1, 2025 - April 30, 2025 | 142,934 | $14.1443 | $136,346,900 | | May 1, 2025 - May 31, 2025 | 14,505 | $17.5561 | $136,092,249 | | June 1, 2025 - June 30, 2025 | 256,889 | $18.5760 | $131,320,274 | Item 3. Defaults Upon Senior Securities This section states that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred during the reporting period[265] Item 4. Mine Safety Disclosures This section indicates that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[266] Item 5. Other Information This section provides information on Rule 10b5-1 trading arrangements adopted by executive officers and details subsequent events regarding the redemption of public warrants - Executive Chairman Xunkai Gong adopted a Rule 10b5-1 trading arrangement for the sale of up to 300,000 shares of common stock until January 15, 2026[267] - CFO James Caci adopted a Rule 10b5-1 trading arrangement for the sale of up to 30,000 shares of common stock until December 31, 2025[268] - Subsequent to June 30, 2025, AvePoint completed the redemption of all outstanding public warrants on July 11, 2025, after 758,100 warrants were exercised for $8.7 million cash proceeds[270][271] Item 6. Exhibits This section lists the exhibits filed with or incorporated by reference into the Quarterly Report on Form 10-Q, including certifications, XBRL documents, and the cover page interactive data file - Includes certifications from Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents[275] Signatures This section contains the required signatures of the registrant's Chief Executive Officer and Chief Financial Officer, certifying the report's submission - Report signed by Tianyi Jiang (Chief Executive Officer) and James Caci (Chief Financial Officer) on August 7, 2025[280]