Financial Performance - Q2 2025 total revenue was $5.7 million, a 4% increase from Q1 2025, and $11.2 million for the first half of 2025 compared to $0.5 million in the prior year period[1][8] - Net loss for Q2 2025 increased by 230% to $1.1 million compared to a net income of $0.8 million in Q1 2025, while Adjusted EBITDA improved 22% to negative $0.4 million[7][10] - Total revenue for the three months ended June 30, 2025, was $5,722,599, compared to $271,409 for the same period in 2024, representing a significant increase[20] - Subscription revenue increased to $278,629 for the three months ended June 30, 2025, from $271,409 in the same period of 2024[20] - Operating loss from continuing operations for the six months ended June 30, 2025, was $(2,463,626), compared to $(2,056,060) for the same period in 2024[20] - Net loss from continuing operations for the six months ended June 30, 2025, was $(241,498), a decrease from $(1,547,368) in the same period of 2024[23] - Adjusted EBITDA for the three months ended June 30, 2025, was $(378,289), compared to $(936,227) for the same period in 2024[27] - The company reported a net loss per share of $(0.08) for both basic and diluted shares for the three months ended June 30, 2025[20] Cash and Assets - Cash and cash equivalents totaled $8.3 million as of June 30, 2025, with no long-term debt reported[10] - As of June 30, 2025, accounts receivable totaled $2.4 million, reflecting business consummated since the acquisition[7][10] - The balance of cash and cash equivalents at the end of the period was $8,301,692, down from $12,796,004 at the end of June 30, 2024[23] - Cash flows from operating activities for the six months ended June 30, 2025, provided $856,105, compared to $(772,045) for the same period in 2024[23] Business Developments - The acquisition of Newtek Technology Solutions, Inc. was completed on January 2, 2025, refocusing the company's business on cybersecurity and cloud infrastructure[2][3] - The company aims to become a leading managed technology solutions provider in cybersecurity and cloud infrastructure, with a focus on growth opportunities in the second half of 2025 and into 2026[6] - The company launched Aura, an AI-powered online safety solution aimed at minimizing the impact of data breaches and online threats[5] Revenue Breakdown - Managed information technology revenue for Q2 2025 was $3.5 million, while procurement revenue was $1.2 million, and professional services revenue was $0.7 million[10] - The company reported deferred revenue of $3.9 million in Q2 2025, which will be recognized in future quarters as products and services are installed[10] Stock Activity - The company initiated a stock repurchase plan for up to $400,000, purchasing 104,600 shares during the quarter[4] - The company recognized stock-based compensation expense of $245,389 for the six months ended June 30, 2025, compared to $91,561 for the same period in 2024[23]
Paltalk(PALT) - 2025 Q2 - Quarterly Results