Boxlight(BOXL) - 2025 Q2 - Quarterly Results

Executive Summary Boxlight's Q2 2025 revenue increased 38% sequentially to $30.9 million, but declined 19.9% YoY, reporting a $4.7 million net loss and positive Adjusted EBITDA Management Commentary CEO Dale Strang is optimistic for 2026 growth, noting a 38% sequential Q2 revenue increase and stable gross margins from cost streamlining - Revenue increased by nearly 38% in Q2 vs Q1, suggesting an improvement in industry demand and giving management optimism for the future[3] - Boxlight's market outlook supports a return to overall growth in 2026, despite headwinds created by external factors such as evolving trade dynamics and disruption in government funding[3] - Boxlight maintained positive Adjusted EBITDA and relatively stable gross margins despite revenue headwinds, demonstrating progress in streamlining cost structure and enabling a sustainable business model[3] Q2 2025 Financial and Operational Highlights Q2 2025 revenue was $30.9 million (down 19.9% YoY, up 37.6% sequentially), with a $4.7 million net loss and $1.3 million Adjusted EBITDA Q2 2025 Key Financial Highlights | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | Sequential Change (vs Q1 2025) | | :----- | :-------------------- | :-------------------- | :--------- | :------------------------------ | | Revenue | $30.9 | $38.5 | -19.9% | +37.6% | | Gross Profit Margin | 35.0% | 37.7% | -2.7 pp | N/A | | Net Loss | $(4.7) | $(1.5) | +213.3% | N/A | | Net Loss per Share (Basic & Diluted) | $(1.53) | $(0.92) | +66.3% | N/A | | Adjusted EBITDA | $1.3 | $3.7 | -64.9% | N/A | - Boxlight launched CL Totem in North America, providing modern, freestanding digital signage built for high-traffic environments[7] - The company ended the quarter with $7.6 million in cash and a $0.5 million working capital deficit[7][14] Financial Results - Three Months Ended June 30, 2025 (Q2 2025) This section details Boxlight's Q2 2025 financial performance, including revenue, gross profit, operating expenses, net loss, and EBITDA Revenue and Gross Profit Q2 2025 total revenues decreased 19.9% YoY to $30.9 million, with gross profit falling 25.7% to $10.8 million due to product mix and pricing Q2 2025 Revenue and Gross Profit | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Total Revenues | $30.9 | $38.5 | -19.9% | | Cost of Revenues | $20.1 | $24.0 | -16.4% | | Gross Profit | $10.8 | $14.5 | -25.7% | | Gross Profit Margin | 35.0% | 37.7% | -2.7 pp | - The decrease in revenues was primarily due to lower sales volume across all markets[4] - The decrease in gross profit margin was primarily related to the difference in product mix offset by increases in pricing pressure within the industry compared to the prior year quarter[6] Operating Expenses and Other Income/Expense Q2 2025 total operating expenses increased to $14.7 million (47.7% of revenues), while other expense, net, significantly decreased to $0.5 million Q2 2025 Operating Expenses and Other Expense, Net | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Total Operating Expenses | $14.7 | $13.3 | +10.5% | | % of Revenues | 47.7% | 34.5% | +13.2 pp | | Other Expense, Net | $0.5 | $2.8 | -82.1% | - The increase in general and administrative expenses for Q2 2025 was primarily due to increase in professional fees of $0.7 million, depreciation and amortization of $0.6 million and other costs of $1.1 million, partially offset by a decrease in employee-related expenses of $1.4 million[8] - The decrease in other expense in the current period relates primarily to the positive impacts of foreign currency translation[9] Net Loss and Earnings Per Share (EPS) Boxlight reported a Q2 2025 net loss of $4.7 million, a significant increase from $1.5 million in Q2 2024, with EPS worsening to $(1.53) Q2 2025 Net Loss and EPS | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Net Loss | $(4.7) | $(1.5) | +213.3% | | Net Loss Attributable to Common Shareholders | $(5.0) | $(1.8) | +177.8% | | Basic and Diluted EPS | $(1.53) | $(0.92) | +66.3% | | Total Comprehensive Loss | $(4.6) | $(1.5) | +206.7% | EBITDA and Adjusted EBITDA Q2 2025 EBITDA decreased to $0.7 million from $3.0 million, and Adjusted EBITDA fell to $1.3 million from $3.7 million YoY Q2 2025 EBITDA and Adjusted EBITDA | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | EBITDA | $0.7 | $3.0 | -76.7% | | Adjusted EBITDA | $1.3 | $3.7 | -64.9% | Financial Results - Six Months Ended June 30, 2025 (H1 2025) This section presents Boxlight's financial performance for the first half of 2025, covering revenue, expenses, net loss, and EBITDA Revenue and Gross Profit H1 2025 total revenues decreased 29.5% YoY to $53.3 million, with gross profit declining 31.1% to $18.8 million due to lower demand and pricing pressure H1 2025 Revenue and Gross Profit | Metric | H1 2025 (in millions) | H1 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Total Revenues | $53.3 | $75.6 | -29.5% | | Cost of Revenues | $34.4 | $48.3 | -28.6% | | Gross Profit | $18.8 | $27.3 | -31.1% | | Gross Profit Margin | 35.4% | 36.2% | -0.8 pp | - The decrease in revenues was primarily due to lower sales volume across all markets primarily resulting from lower global demand for interactive flat panel displays as well as competitive industry pricing[15] - The decrease in gross profit margin is primarily related to the difference in product mix, partially offset by increases in pricing pressure within the Interactive Flat Panel Display market compared to the prior year quarter[17] Operating Expenses and Other Income/Expense H1 2025 total operating expenses decreased by $4.0 million to $25.7 million, while other expense, net, significantly decreased to $1.0 million due to fair value changes and currency gains H1 2025 Operating Expenses and Other Expense, Net | Metric | H1 2025 (in millions) | H1 2024 (in millions) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Total Operating Expenses | $25.7 | $29.7 | -13.5% | | % of Revenues | 48.2% | 39.3% | +8.9 pp | | Other Expense, Net | $1.0 | $5.4 | -81.5% | - The decrease in total operating expenses for the current year period was due to ongoing initiatives to reduce operating expenses across all cost groups, with the largest declines in employee-related expenses of $3.9 million[18] - The decrease in other expense in the current period was due to positive changes in the fair value of common warrants and foreign currency gains[20] [Net Loss and Earnings Per Share (EPS)](index=3&type=section&id=3_3_Net_Loss_