NowVertical Group Reports Third Quarter 2025 Financial Results

Core Insights - NowVertical Group Inc. reported a transition towards higher-margin strategic accounts, with revenue from the top 30 clients representing 69% of total revenue, growing over 23% year-to-date compared to the same period in 2024 [2][6] - The company maintained industry-leading margins and positive operating income while achieving year-to-date adjusted EBITDA growth, positioning itself for significant expansion [2][6] - A strengthened partnership with Google Cloud has generated over $3.4 million in revenue and created twenty new enterprise opportunities [2][6] Financial Performance - Revenue for Q3 2025 was $9.1 million, a 15% decrease from $10.7 million in Q3 2024, primarily due to a $1.0 million revenue deflation from the Argentine peso devaluation [6] - Year-to-date revenue for 2025 was $27.7 million, a 3% decrease from $28.6 million in 2024 [6] - Gross profit margin was 51% in Q3 2025, with gross profit at $4.7 million, an 11% decrease from $5.3 million in Q3 2024 [6] - Administrative expenses increased by 9% to $4.3 million in Q3 2025, while year-to-date administrative expenses decreased by 16% to $11.1 million [6] - Income from operations was $0.4 million in Q3 2025, a 72% decrease from $1.3 million in Q3 2024, but year-to-date income from operations increased by 55% to $2.5 million [6] - Adjusted EBITDA was $1.8 million in Q3 2025, representing 20% of revenue, a 9% decrease from $2.0 million in Q3 2024, while year-to-date adjusted EBITDA increased by 17% to $5.4 million [6] Business Highlights - The company was awarded the Google Cloud Generative AI Specialization, enhancing its global partnership with Google [6] - A record-speed $1M+ account was achieved in the UK market, indicating accelerated momentum in enterprise-level customer expansion [6] - The company participated in a Fireside Chat at the Planet MicroCap Showcase, reinforcing its leadership position [6] - The full retirement of outstanding debentures was announced, strengthening the balance sheet and enhancing financial flexibility [6]