Customer and Service Provider Network - As of September 30, 2025, the company has 59 Customer Partners and over 74,000 participating Service Provider vehicle drivers in its network[103]. Dispatch and Revenue Performance - For the three months ended September 30, 2025, the company completed approximately 194,000 dispatches, a decrease from 219,000 dispatches in the same period of 2024[119]. - For the nine months ended September 30, 2025, the company completed approximately 574,000 dispatches, down from 656,000 dispatches in the same period of 2024[119]. - Total revenue decreased by $3.3 million, or 9%, to $32.9 million for the three months ended September 30, 2025, compared to $36.2 million for the same period in 2024[141]. - Revenue decreased by $15.0 million, or 14%, to $95.9 million for the nine months ended September 30, 2025, compared to $110.9 million for the same period in 2024[156]. Cost and Profit Analysis - Cost of revenue decreased by $3.6 million, or 13%, to $24.8 million for the three months ended September 30, 2025, primarily due to a decline in dispatch volume[143]. - Cost of revenue decreased by $14.6 million, or 17%, to $71.9 million for the nine months ended September 30, 2025, primarily due to a decline in dispatch volume[157]. - Gross profit increased by $0.3 million to $8.1 million for the three months ended September 30, 2025, driven by improved unit economics per dispatch[144]. - Gross profit for the nine months ended September 30, 2025 was $24.0 million, a slight decrease from $24.4 million in the same period of 2024[158]. Operating Expenses - Non-GAAP operating expenses for the three months ended September 30, 2025, were $7.988 million, compared to $10.710 million for the same period in 2024, reflecting a decrease of approximately 25.5%[122]. - Total operating expenses decreased by $3.8 million, or 28%, to $9.9 million for the three months ended September 30, 2025[140]. - Research and development expenses decreased by $1.3 million, or 42%, to $1.8 million for the three months ended September 30, 2025[145]. - Sales and marketing expenses decreased by $0.8 million, or 53%, to $0.7 million for the three months ended September 30, 2025[147]. - General and administrative expenses decreased by $1.3 million, or 26%, to $3.7 million for the three months ended September 30, 2025[151]. - Research and development expenses decreased by $5.7 million, or 51%, to $5.4 million, representing 6% of total revenue, down from 10%[160][161]. - Sales and marketing expenses decreased by $3.0 million, or 59%, to $2.1 million, representing 2% of total revenue, down from 5%[162][163]. - Operations and support expenses decreased by $3.6 million, or 33%, to $7.3 million, representing 8% of total revenue, down from 10%[164][165]. - General and administrative expenses decreased by $4.2 million, or 25%, to $12.3 million, representing 13% of total revenue, down from 15%[166][167]. Net Loss and Cash Flow - Net loss for the three months ended September 30, 2025, was $5.2 million, compared to a net loss of $10.6 million for the same period in 2024[140]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $5.6 million, an improvement from $28.8 million in the same period of 2024[182][183]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $4.0 million, compared to a net cash provided of $26.0 million in 2024[184][185]. - Net cash used in financing activities for the nine months ended September 30, 2025 was $0.6 million, a decrease from $18.1 million in 2024[187][188]. Debt and Cash Position - As of September 30, 2025, the principal debt balance totaled $61.0 million, with maturity dates through July 31, 2026[171]. - The company had $4.0 million in cash, cash equivalents, and restricted cash as of September 30, 2025[171]. Strategic Focus and Future Outlook - The company capitalized $4.1 million in costs associated with internal development of its technology platform for the nine months ended September 30, 2025, and expects to invest an additional $1.0 to $1.5 million in Q4 2025[112]. - The company's gross profit is expected to increase modestly over the long term due to platform enhancements leading to more cost-effective Service Provider costs[129]. - The company aims for 100% Consumer satisfaction, with a consumer satisfaction score of 4.6 out of 5 for both the three and nine months ended September 30, 2025[116]. - The company is focused on investing in proprietary technology, machine learning, and data analytics to streamline operations and improve Consumer experience[111]. - The company anticipates that its platform capabilities will grow to meet the demands of new Customer Partners as its Service Provider network expands[107]. Regulatory and Reporting Status - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards until they apply to private companies[190]. - Management believes there are no material changes to critical accounting estimates that impact the portrayal of financial condition and results of operations[192]. - The company is a smaller reporting company and is not required to provide certain market risk disclosures[194].
Urgent.ly (ULY) - 2025 Q3 - Quarterly Report