PSQ (US:PSQH)2025-11-06 21:20Financial Performance - For the three months ended September 30, 2025, the company's net loss was $12.0 million, a decrease of $1.1 million compared to a net loss of $13.1 million for the same period in 2024[133]. - For the nine months ended September 30, 2025, the net loss was $24.8 million, down $12.1 million from $36.9 million in the same period in 2024, driven by a $4.3 million increase in revenues[133]. - The net loss for the three months ended September 30, 2025, was $11,982,888, a 9% improvement compared to a net loss of $13,137,549 in the same period in 2024[161]. - The company reported net losses of $24.8 million for the nine months ended September 30, 2025, compared to $36.9 million in 2024[182]. - Non-GAAP operating loss for the nine months ended September 30, 2025, was $7.8 million, compared to $0.5 million in 2024[191]. Revenue and Growth - For the three months ended September 30, 2025, revenues increased to $4,404,861, a 37% increase compared to $3,207,408 in the same period in 2024[161]. - For the nine months ended September 30, 2025, revenues increased to $10,887,521, a 66% increase compared to $6,552,433 in the same period in 2024[162]. - The company expects increased revenues from investments in its FinTech segment in the medium term, despite short-term negative cash flow impacts[183]. Gross Merchandise Volume (GMV) - Gross merchandise volume (GMV) for the Financial Technology segment was $11.0 million for the three months ended September 30, 2025, representing a 29% decrease compared to $15.5 million in 2024[153]. - GMV for the nine months ended September 30, 2025, was $33.2 million, a 27% decrease from $45.7 million in the same period in 2024[154]. - The company's top five merchants represented approximately 58% of total GMV - Credit for the nine months ended September 30, 2025, up from 42% in the same period in 2024[155]. - GMV - Credit declined year-over-year due to a slowdown in the firearm retail industry, with some merchant partners reporting sales down more than 20% year-over-year[156]. - PSQ Payments generated $89.2 million in GMV for the three months ended September 30, 2025, representing a 100% change compared to zero in the same period in 2024[158]. Expenses and Cost Management - Cost of revenue (exclusive of depreciation and amortization) increased by 1284% for the three months ended September 30, 2025, attributed to an increase in transaction fees from the launch of PSQ Payments[166]. - General and administrative expenses decreased by $2.3 million, or 22%, for the three months ended September 30, 2025, due to reductions in share-based compensation and operating costs[168]. - Research and development expenses increased by $0.8 million, or 204%, for the three months ended September 30, 2025, driven by increased employee compensation[172]. - Research and development expenses are anticipated to increase in absolute dollars as the company focuses on developing its PSQ Payments and PSQ Impact ecosystems[144]. - The company expects operating expenses to increase in absolute dollar amounts but decline as a percentage of revenue over time due to cost-saving measures[141]. Cash Flow and Financing - Net cash used in operating activities decreased by $9.8 million to $17.4 million for the nine months ended September 30, 2025, compared to $27.1 million in 2024[186]. - Net cash used in investing activities increased to $7.7 million for the nine months ended September 30, 2025, from $0.9 million in 2024[187]. - Net cash provided by financing activities decreased to $0.8 million for the nine months ended September 30, 2025, compared to $17.3 million in 2024[188]. - The company had aggregate unrestricted cash and cash equivalents of $10.6 million as of September 30, 2025, down from $33.6 million at the end of 2024[182]. - The company may need to pursue additional equity raises and debt financing to support future capital requirements[184]. Strategic Initiatives - A strategic repositioning was announced on August 12, 2025, focusing on accelerating growth in the FinTech segment and monetizing the Brands segment[132]. - The company is expanding into new retail verticals and developing innovative financial products to strengthen future growth[157]. - The company appointed Caitlin Long to its Board of Directors on July 28, 2025, enhancing its expertise in digital assets and financial technology[131]. Market Trends - U.S. firearm sales fell for the fourth consecutive year in 2024, totaling approximately 15.2 million adjusted background checks, a 3.5% decline from 2023[156]. - The company recorded a $0.7 million increase in interest income earned for the nine months ended September 30, 2025[133]. - Interest expense, net increased by $1.2 million for the nine months ended September 30, 2025, compared to the same period in 2024[180].