BuildDirect Reports Third Quarter 2025 Financial Results

Core Insights - BuildDirect reported a 6.5% increase in revenue for Q3 2025, reaching $18.1 million, and a 23% increase in adjusted EBITDA, marking the 15th consecutive quarter of positive performance [2][7][15] - The company strengthened its financial position with working capital rising to $8.6 million, supported by a successful capital raise of C$7.0 million [2][7][15] - BuildDirect plans to accelerate growth by adding new Pro Centers, enhancing its e-commerce platform, and integrating recent acquisitions [2][15][18] Financial Position - As of September 30, 2025, cash and cash equivalents were $8.8 million, up from $2.3 million at the end of 2024, an increase of $6.5 million [6][27] - Total assets increased to $36.8 million from $27.8 million, a change of $9.1 million [6][27] - Total liabilities rose to $30.1 million from $24.6 million, an increase of $5.5 million [6][27] - Shareholders' equity improved to $6.7 million from $3.2 million, an increase of $3.6 million [6][27] Financial Results - Revenue for Q3 2025 was $18.1 million, up from $17.0 million in Q3 2024 [7][28] - Gross margin improved to 38.9%, up 60 basis points from 38.3% in Q3 2024 [7][28] - Adjusted EBITDA for Q3 2025 was $0.97 million, an increase of 23.2% from $0.79 million in Q3 2024 [7][28] - The company reported a net loss of $946,437 for Q3 2025, compared to a loss of $384,414 in Q3 2024 [28][29] Revenue and Segment Performance - E-Commerce and Pro Center segments contributed 20% and 80% of sales respectively in Q3 2025, compared to 23% and 77% in Q3 2024 [12][11] - Revenue from the E-Commerce segment was $3.7 million, while Pro Centers generated $14.4 million in revenue for Q3 2025 [12][11] Future Outlook - BuildDirect aims to enhance revenue, margins, and cash flow by expanding its Pro Center network and improving operational efficiency [15][18] - The company plans to invest in digital capabilities and fully integrate recent acquisitions to capture synergies [15][18]