Core Insights - illumin Holdings Inc. reported a revenue of $38.2 million for Q3 2025, reflecting a 5% year-over-year increase, driven by a significant growth in Exchange service revenue, which more than doubled [1][5] - The company is transitioning to an outcomes-based platform approach, appointing a new Chief Revenue Officer to support this strategic shift [1][3] Financial Performance - Exchange service revenue increased to $20.5 million, showing a year-over-year growth of 103%, while Self service revenue was stable at $8.3 million, with a 15% increase for the quarter when adjusted for a client exit [5][8] - Managed service revenue decreased to $9.4 million due to broader market uncertainty affecting customer marketing spend [5][8] - Gross margin decreased to 38% from 47% in the previous year, attributed to a higher proportion of revenue from lower-margin service lines [5][8] - Net loss for the quarter was $2.1 million, compared to a loss of $1.1 million in Q3 2024, primarily due to lower Adjusted EBITDA and increased expenses [5][8] Strategic Initiatives - The company is focusing on scaling its Exchange and Self service offerings through innovation and sales execution, while also investing in product development to differentiate in a competitive market [7][8] - A new generative AI-powered Self service edition is expected to enhance customer adoption and spending, creating new opportunities for platform leverage [6][7] - Cost containment measures are being implemented to streamline operations and improve profitability as the company prepares for 2026 [6][8] Market Trends - The digital advertising market is shifting away from traditional demand-side platforms, with increasing demand for integrated outcomes-based solutions [4][6] - illumin is attracting new customers to its Exchange service as publishers seek alternatives to older supply-side platforms [4][6]

Core Insights - illumin Holdings Inc. reported a solid revenue growth of 13% year-over-year for Q2 2025, reaching $33.1 million, driven by strong performance in Exchange service revenue and steady growth in Self service revenue [3][4] Financial Performance - Revenue for Q2 2025 was $33.1 million, a 13% increase from $29.2 million in Q2 2024, with Exchange service revenue increasing by 114% to $13.0 million [4][19] - Self service revenue was $9.2 million, accounting for 28% of total revenue, reflecting a 5% increase compared to the previous year [4][19] - Managed service revenue decreased by 24% year-over-year to $10.9 million, attributed to challenges in new client acquisition and reduced spending from existing clients [4][19] - Gross margin stood at 43%, with net revenue (Gross Profit) of $14.4 million, up 3% from $14.0 million in the prior year [4][19] - Adjusted EBITDA showed a loss of $1.0 million, compared to a profit of $0.5 million in Q2 2024, primarily due to higher operating costs [4][19] - The net loss for the quarter was $5.8 million, compared to a loss of $1.0 million in Q2 2024, influenced by lower Adjusted EBITDA and a net foreign exchange loss [4][19] Strategic Initiatives - The company onboarded 31 new Self service clients during the quarter, indicating successful sales initiatives targeting higher-spend clients [3][4] - A new AI forecasting tool was launched for Self service customers, generating strong interest with over 60% of existing users testing it [4] - The company is implementing cost reduction and restructuring initiatives, including a 10% reduction in the North American workforce and a decrease in real estate footprint [5] Market Positioning - The company is focused on a clear product differentiation strategy and client acquisition, aiming to enhance profitability while navigating a shifting market [3][5] - The strong growth in Exchange service revenue is attributed to targeted investments in technology and sales, which have strengthened the company's competitive position [3][5]