Quorum Announces Q3 2025 Results

Core Insights - Quorum Information Technologies Inc. reported its second consecutive quarter of Cash EBITDA growth, with Cash EBITDA increasing from $1.0 million in Q1 to $1.5 million in Q3 2025, reflecting the success of its profitability improvement plan initiated in late Q1 2025 [3][10] - The company achieved 2% organic growth in recurring revenue during Q3 2025 and paid down an additional $0.4 million on its BDC Capital Mezzanine Loan Facility [3] - Quorum announced its acquisition by an affiliate of Valsoft Corporation Inc., with the Purchaser set to acquire all common shares for $0.80 per share, subject to shareholder and court approvals [3][4] Financial Performance - Total revenue for Q3 2025 was $10.0 million, a 1% increase compared to Q3 2024, while SaaS revenue decreased by 1% to $7.2 million [4][10] - BDC revenue increased by 10% to $2.7 million in Q3 2025 compared to the same period last year [4][10] - Gross margin for Q3 2025 was $5.0 million, a 1% increase from Q3 2024, maintaining a gross margin percentage of 50% [4][10] - Net income for Q3 2025 was $313,859, a 60% decrease compared to $788,309 in Q3 2024, while Adjusted EBITDA was $1.9 million, down 14% from the previous year [4][10] - Cash EBITDA for Q3 2025 was $1.5 million, a 1% increase from Q3 2024, with a Cash EBITDA margin of 15% [6][10] Strategic Developments - The acquisition by Valsoft Corporation is expected to provide long-term investment and a collaborative approach, enhancing Quorum's ability to deliver exceptional service [3] - The transaction is anticipated to close in Q4 2025, with Quorum planning to apply for delisting from the TSX-V and cease being a reporting issuer under Canadian securities laws [3][4]