Paltalk(PALT) - 2025 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2025 reached $6.1 million, a significant increase of 2091.6% compared to $279,879 in Q4 2024[3] - For the full year 2025, total revenues were $23.6 million, up 2049.9% from $1,098,280 in 2024[3] - Total revenue for the year ended December 31, 2025, was $23,612,459, a significant increase from $1,098,280 in 2024[17] - Managed information technology revenue reached $14,813,411, including $7,309,250 from related party revenue, compared to $0 in 2024[17] Net Loss and EBITDA - Net loss improved by 88.5% in Q4 2025, totaling $631,968 compared to a net loss of $5,490,501 in the same period last year[3] - The company reported a net loss of $1,956,536 for the full year 2025, a 76.8% improvement from a net loss of $8,426,209 in 2024[3] - Net loss from continuing operations for 2025 was $1,956,536, an improvement from a loss of $4,268,675 in 2024[19] - Adjusted EBITDA for Q4 2025 was positive at $4,630, a turnaround from a loss of $1,548,947 in Q4 2024[3] - Adjusted EBITDA for the year ended December 31, 2025, was $(1,116,037), an improvement from $(4,431,852) in 2024[22] Cash Flow and Assets - Cash flow from operations was positive at $1.1 million for the full year 2025, compared to a cash outflow of $2.7 million in 2024[3] - As of December 31, 2025, the company had cash and cash equivalents of $8.4 million and no long-term debt[3] - Total assets increased to $26,040,517 in 2025, up from $15,872,530 in 2024, reflecting a growth of approximately 64%[15] - Cash and cash equivalents decreased to $5,597,014 in 2025 from $10,588,534 in 2024, a decline of approximately 47%[19] Liabilities and Equity - Total liabilities rose to $7,854,589 in 2025, compared to $3,972,868 in 2024, marking an increase of about 97%[15] - The balance of stockholders' equity increased to $18,185,928 in 2025, up from $11,899,662 in 2024, reflecting a growth of approximately 53%[15] Strategic Initiatives - The acquisition of Newtek Technology Solutions was completed on January 2, 2025, marking a strategic shift towards cybersecurity and cloud infrastructure[4] - The company aims to grow revenue both organically and through potential acquisitions in 2026, while optimizing expenses[2] - The company acquired NTS for $4,000,000 during the year, impacting cash flows from investing activities[19] Operational Growth - The company managed over 10,000 devices under management as of December 31, 2025, indicating growth in its managed services[6] - The company incurred litigation expenses of $717,780 related to the Cisco ManyCam Litigation in 2025[22]