Urgent.ly (ULY) - 2025 Q2 - Quarterly Results

Company Overview and Q2 2025 Performance Q2 2025 Financial and Operational Highlights Q2 2025 saw an 8% revenue decrease to $31.7 million, yet gross profit rose 8% and operating losses improved significantly Q2 2025 vs Q2 2024 Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Revenue | $31.7 | $34.5 | -8% | | Gross Profit | $7.9 | $7.3 | +8% | | Gross Margin | 25% | 21% | +4 ppts | | GAAP Operating Expenses | $10.1 | $15.7 | -36% | | Non-GAAP Operating Expenses | $8.1 | $13.5 | -40% | | GAAP Operating Loss | $(2.2) | $(8.3) | +74% (Improvement) | | Non-GAAP Operating Loss | $(0.2) | $(6.2) | +97% (Improvement) | - Approximately 191,000 dispatches completed in Q2 2025[5] - Consumer satisfaction score of 4.7 out of 5 stars[5] - Launched SPARK, Urgently's proprietary AI-powered market analyzer designed to elevate service performance[5] Year-to-Date 2025 Financial and Operational Highlights Year-to-date revenue decreased 16% to $63.0 million, while gross margin improved and operating losses were substantially reduced YTD 2025 vs YTD 2024 Highlights | Metric | YTD 2025 (Millions) | YTD 2024 (Millions) | YoY Change | | :-------------------------- | :------------------ | :------------------ | :--------- | | Revenue | $63.0 | $74.6 | -16% | | Gross Profit | $15.9 | $16.7 | -5% | | Gross Margin | 25% | 22% | +3 ppts | | GAAP Operating Expenses | $20.5 | $33.4 | -38% | | Non-GAAP Operating Expenses | $16.5 | $28.0 | -41% | | GAAP Operating Loss | $(4.6) | $(16.7) | +72% (Improvement) | | Non-GAAP Operating Loss | $(0.6) | $(11.3) | +95% (Improvement) | - Approximately 380,000 dispatches completed year-to-date 2025[10] - Consumer satisfaction score of 4.6 out of 5 stars year-to-date[10] CEO Commentary The CEO highlighted sequential revenue growth, reduced operating losses, and technology leadership driving customer satisfaction and renewals - Achieved sequential quarterly revenue growth for Q2 2025 compared to Q1 2025[2] - Delivered a reduction in GAAP and non-GAAP operating loss ahead of expectations, making progress towards positive cash flow[2] - Utilizes a digitally native platform leveraging AI and machine learning to create predictive models, enhancing performance[2] - Technology leadership is reflected in significant contract renewals, expansions, and new customers[2] About Urgently Urgently provides digital roadside and mobility assistance technology using an AI-powered platform for global transportation sectors - Urgently is a U.S.-based leading provider of digital roadside and mobility assistance technology and services[1] - Its mission is to help everyone move safely and without disruption through proactive technology[7] - Operates a digitally native software platform combining location-based services, real-time data, AI, and machine-to-machine communication[7] - Powers roadside assistance solutions for leading brands across automotive, insurance, and telematics verticals globally[7] Detailed Financial Statements Consolidated Statements of Operations The statements show declining revenue but improved gross margins and significantly lower operating losses due to reduced expenses Three Months Ended June 30, 2025 vs 2024 Q2 2025 revenue decreased 8%, but gross profit grew 8% and operating expenses fell 36%, improving net loss by 52% Statement of Operations (Quarterly) | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Revenue | $31,687 | $34,537 | -8.25% | | Cost of Revenue | $23,754 | $27,207 | -12.69% | | Gross Profit | $7,933 | $7,330 | +8.23% | | Operating Expenses | $10,086 | $15,670 | -35.76% | | Operating Loss | $(2,153) | $(8,340) | +74.18% (Improvement) | | Net Loss | $(5,612) | $(11,667) | +51.91% (Improvement) | | Loss per share, basic and diluted | $(4.50) | $(10.43) | +56.85% (Improvement) | Six Months Ended June 30, 2025 vs 2024 Year-to-date revenue fell 16%, but a 38% reduction in operating expenses led to a 72% improvement in operating loss Statement of Operations (Year-to-Date) | Metric (in thousands) | YTD 2025 | YTD 2024 | YoY Change | | :-------------------- | :------- | :------- | :--------- | | Revenue | $62,959 | $74,629 | -15.63% | | Cost of Revenue | $47,037 | $57,948 | -18.83% | | Gross Profit | $15,922 | $16,681 | -4.55% | | Operating Expenses | $20,522 | $33,369 | -38.52% | | Operating Loss | $(4,600) | $(16,688) | +72.44% (Improvement) | | Net Loss | $(11,096) | $(24,682) | +55.03% (Improvement) | | Loss per share, basic and diluted | $(9.18) | $(22.12) | +58.59% (Improvement) | Consolidated Balance Sheets Total assets decreased while the stockholders' deficit widened, reflecting reduced cash and accumulated losses as of June 30, 2025 Balance Sheet Highlights | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Total Assets | $40,152 | $54,071 | -25.74% | | Cash and cash equivalents | $4,830 | $14,179 | -65.93% | | Accounts receivable, net | $19,873 | $22,890 | -13.18% | | Capitalized software costs, net | $5,943 | $4,637 | +28.17% | | Total Liabilities | $81,460 | $85,741 | -4.99% | | Revolving credit facility, net | $6,155 | — | N/A | | Current portion of long-term debt | $4,257 | $14,257 | -70.14% | | Long-term debt, net | $42,270 | $39,883 | +5.98% | | Total Stockholders' Deficit | $(41,308) | $(31,670) | -30.42% (Worsening) | Non-GAAP Financial Measures Definition and Purpose of Non-GAAP Measures The company uses non-GAAP measures to provide a clearer view of core operating performance by excluding certain non-cash and non-recurring items - Non-GAAP Operating Expenses exclude depreciation, amortization, stock-based compensation, and non-recurring charges[9][11] - Non-GAAP Operating Loss excludes depreciation, amortization, stock-based compensation, and non-recurring charges[11] - These measures are used to evaluate ongoing operations, for internal planning, and to provide comparability with past performance[8] - Investors are encouraged to review related GAAP financial measures and reconciliations and not rely on any single measure[9] Reconciliation of Operating Expenses This reconciliation adjusts GAAP operating expenses for items like depreciation and stock-based compensation to derive non-GAAP figures Three Months Ended June 30, 2025 vs 2024 (Operating Expenses) Q2 2025 Non-GAAP operating expenses were $8.1 million, a 40% year-over-year improvement after excluding $2.0 million in adjustments Reconciliation of GAAP to Non-GAAP Operating Expenses (Quarterly) | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Operating expenses (GAAP) | $10,086 | $15,670 | -35.76% | | Less: Depreciation and amortization | $(1,079) | $(1,104) | -2.26% | | Less: Stock-based compensation | $(382) | $(438) | -12.78% | | Less: Non-recurring transaction costs | $(178) | $(207) | -13.99% | | Less: Restructuring costs | $(315) | $(425) | -25.88% | | Non-GAAP operating expenses | $8,132 | $13,496 | -39.75% | Six Months Ended June 30, 2025 vs 2024 (Operating Expenses) Year-to-date Non-GAAP operating expenses were $16.5 million, a 41% improvement after excluding $4.0 million in adjustments Reconciliation of GAAP to Non-GAAP Operating Expenses (Year-to-Date) | Metric (in thousands) | YTD 2025 | YTD 2024 | YoY Change | | :-------------------------------- | :------- | :------- | :--------- | | Operating expenses (GAAP) | $20,522 | $33,369 | -38.52% | | Less: Depreciation and amortization | $(2,065) | $(2,206) | -6.48% | | Less: Stock-based compensation | $(920) | $(1,156) | -20.42% | | Less: Non-recurring transaction costs | $(553) | $(933) | -40.73% | | Less: Restructuring costs | $(489) | $(1,124) | -56.49% | | Non-GAAP operating expenses | $16,495 | $27,950 | -41.05% | Reconciliation of Operating Loss This reconciliation adjusts GAAP operating loss for non-cash and non-recurring items to calculate the non-GAAP operating loss Three Months Ended June 30, 2025 vs 2024 (Operating Loss) Q2 2025 Non-GAAP operating loss was $(0.2) million, a 97% year-over-year improvement after adding back $2.0 million in adjustments Reconciliation of GAAP to Non-GAAP Operating Loss (Quarterly) | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Operating loss (GAAP) | $(2,153) | $(8,340) | +74.18% (Improvement) | | Add: Depreciation and amortization | $1,079 | $1,104 | -2.26% | | Add: Stock-based compensation | $382 | $438 | -12.78% | | Add: Non-recurring transaction costs | $178 | $207 | -13.99% | | Add: Restructuring costs | $315 | $425 | -25.88% | | Non-GAAP operating loss | $(199) | $(6,166) | +96.77% (Improvement) | Six Months Ended June 30, 2025 vs 2024 (Operating Loss) Year-to-date Non-GAAP operating loss was $(0.6) million, a 95% improvement after adding back $4.0 million in adjustments Reconciliation of GAAP to Non-GAAP Operating Loss (Year-to-Date) | Metric (in thousands) | YTD 2025 | YTD 2024 | YoY Change | | :-------------------------------- | :------- | :------- | :--------- | | Operating loss (GAAP) | $(4,600) | $(16,688) | +72.44% (Improvement) | | Add: Depreciation and amortization | $2,065 | $2,206 | -6.48% | | Add: Stock-based compensation | $920 | $1,156 | -20.42% | | Add: Non-recurring transaction costs | $553 | $933 | -40.73% | | Add: Restructuring costs | $489 | $1,124 | -56.49% | | Non-GAAP operating loss | $(573) | $(11,269) | +94.91% (Improvement) | Corporate Information and Disclosures Earnings Conference Call Details The company will host a conference call on August 12, 2025, to discuss its Q2 2025 financial results - The conference call will be held on August 12, 2025, at 5:00 p.m. Eastern Time[6] - Live access is available via phone at 1-877-317-6789 (USA) or 1-412-317-6789 (International)[6] - A replay will be available via webcast on Urgently's Investor Relations website[6] Forward-Looking Statements and Risk Factors The report contains forward-looking statements subject to significant risks and uncertainties detailed in the company's SEC filings - The press release contains "forward-looking statements" subject to substantial risks and uncertainties[13] - Actual results could differ materially due to factors like ability to raise funds, history of losses, and customer retention[14] - Risks are detailed in SEC filings, including the annual report on Form 10-K and quarterly reports on Form 10-Q[14] - Urgently disclaims any obligation to update forward-looking statements[14]