SportsMap Tech Acquisition (SMAP) - 2025 Q2 - Quarterly Results

Company Overview & Executive Summary MultiSensor AI Holdings, Inc. announced Q2 2025 financial results, outlining a new strategic course focused on talent, customer value, and operational excellence, while detailing its intelligent multi-sensing platform capabilities Introduction MultiSensor AI Holdings, Inc. announced its financial results for the second quarter ended June 30, 2025, highlighting its position as a pioneer in condition-based monitoring and predictive maintenance - MultiSensor AI Holdings, Inc. (NASDAQ: MSAI) announced financial results for the second quarter ended June 30, 2025[1] Management Commentary CEO Asim Akram outlined a new strategic course focusing on talent acquisition, customer value, and operational excellence. CFO Robert Nadolny noted improved liquidity from subscription renewals offsetting hardware sales decline and highlighted cost optimization initiatives for long-term profitability and scalable growth - CEO Asim Akram emphasized a new strategic course, including recruiting industry-leading talent with deep expertise in B2B sales, product and commercial marketing, AI-driven solutions, and advanced capabilities in predictive maintenance[2] - CFO Robert Nadolny reported that upfront payments from subscription renewals strengthened liquidity and helped offset the decline in stand-alone hardware sales, consistent with a strategic shift toward being a solution-focused, hardware-agnostic partner[3] - Strategic cost optimization initiatives were executed to align the expense base with current operations, aiming to enhance long-term profitability, preserve agility, and position MSAI for scalable and efficient growth[3] About MultiSensor AI MultiSensor AI develops and deploys intelligent multi-sensing platforms that integrate edge and cloud software solutions leveraging artificial intelligence. Their integrated solutions use data from various sensors to protect critical assets, providing actionable insights to minimize downtime, reduce maintenance costs, prevent hazards, and extend asset life - MultiSensor AI builds and deploys intelligent multi-sensing platforms incorporating edge and cloud software solutions that leverage artificial intelligence[8] - MSAI's integrated solutions utilize data from an array of sensors and sensor modalities, including high-resolution thermal imagers, visible and acoustic imagers, as well as vibration and laser spectroscopy sensors, to protect customers' most critical assets[8] - The platform combines condition-based monitoring data with proprietary edge and cloud software to generate actionable insights that minimize unplanned downtime, reduce maintenance costs, prevent hazards, and extend asset life[8] Second Quarter 2025 Financial Performance MultiSensor AI reported a 33% revenue decrease to $1.4 million in Q2 2025, driven by lower hardware sales, but saw software revenue growth and improved net loss due to reduced operating expenses Financial Highlights MultiSensor AI reported a 33% decrease in Q2 2025 revenue to $1.4 million, primarily due to an expected reduction in stand-alone hardware sales. However, software revenue grew 37% to $0.4 million, and subscription renewals provided upfront cash, strengthening liquidity Q2 2025 Financial Highlights | Metric | Q2 2025 (USD Million) | Q2 2024 (USD Million) | Change (%) | | :------------------- | :-------------------- | :-------------------- | :--------- | | Total Revenue | $1.4 | $2.1 | -33% | | Software Revenue | $0.4 | $0.3 | +37% | - The decrease in total revenue was primarily due to an expected reduction in stand-alone hardware sales[6] - Subscription renewals for a global distributor commenced in June 2025, with upfront cash received for the 12-month subscription term, strengthening liquidity[6] Condensed Consolidated Statements of Operations The company's condensed consolidated statements of operations show a net loss of $(3.322) million for Q2 2025, an improvement from $(6.393) million in Q2 2024, despite a decrease in net revenue. The operating loss also improved, driven by lower share-based compensation and other expenses Condensed Consolidated Statements of Operations (Q2 2025 vs Q2 2024) | Metric (in thousands USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Revenue, net | $1,419 | $2,125 | | Cost of goods sold | $1,084 | $538 | | Total operating expenses | $3,653 | $6,434 | | Operating loss | $(3,318) | $(4,847) | | Net loss | $(3,322) | $(6,393) | | Net loss per share, basic and diluted | $(0.10) | $(0.47) | Condensed Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs 2024) | Metric (in thousands USD) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Revenue, net | $2,589 | $4,400 | | Cost of goods sold | $1,560 | $1,707 | | Total operating expenses | $8,964 | $9,871 | | Operating loss | $(7,935) | $(7,412) | | Net loss | $(7,758) | $(10,316) | | Net loss per share, basic and diluted | $(0.23) | $(0.80) | - Share-based compensation expense significantly decreased from $3,326 thousand in Q2 2024 to $423 thousand in Q2 2025, contributing to the reduction in total operating expenses[11] Strategic Business Developments MultiSensor AI accelerated talent acquisition, streamlined its portfolio to focus on IoT-enabled, AI-driven solutions, expanded into data centers, and achieved significant automotive sector milestones Strategic Business Highlights MultiSensor AI accelerated talent acquisition across key functions, simplified its portfolio to focus on core industry verticals with IoT-enabled, AI-driven solutions, and expanded target applications to include data centers. The company also achieved significant milestones in the automotive sector with new pilot implementations and launched new applications with a global distributor for various critical infrastructure monitoring - Accelerated the induction of critical talent across Product, Engineering, and Commercial functions to strengthen the foundation for growth, bringing deep industry expertise in AI, IoT, and go-to-market strategy[6] - Simplified the portfolio to enable sharper focus on core industry verticals, concentrating resources on IoT-enabled, AI-driven solutions that directly address challenges within target markets[6] - Strategically expanded target applications to include data centers, with successful pilots validating potential value in cooling management and server load balancing, and prioritizing a focused go-to-market effort in the second half of 2025[6] - Completed the first pilot implementation with a second Big-3 automaker to monitor lithium-ion battery packs for thermal runaway and partnered with a first Big-3 automaker to launch an advanced pilot featuring dual-vision hardware sensors for enhanced early fire detection[6][7] - Launched new applications with a global distributor, including pilot programs focused on monitoring rooftop solar installations, critical power systems within facilities, and last-mile infrastructure[7] Additional Information This section provides a legal disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties, and includes company contact information Forward-Looking Statements This section serves as a legal disclaimer, identifying forward-looking statements within the press release and cautioning readers about inherent risks, uncertainties, and assumptions that could cause actual outcomes to differ materially from projections. The company disclaims any obligation to update these statements - The press release contains "forward-looking statements" as defined by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995[9] - Forward-looking statements are subject to risks, uncertainties, and assumptions, some of which are beyond the company's control, and actual outcomes may differ materially from the information contained in these statements[9] - The Company expressly disclaims any obligations to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, except as required by applicable law[9] Contact Information Provides contact details for MultiSensor AI, including an investor relations email and website - Investor Relations contact information: e-mail: ir@multisensorai.com, website: www.multisensorai.com[10](index=10&type=chunk)