Core Insights - Vaso Corporation's shares have declined 4.3% since the earnings report for Q2 2025, underperforming the S&P 500 Index, which lost 1.1% during the same period [1] - The company reported a revenue decrease of 1.3% year-over-year, resulting in a net loss of $0.2 million compared to a net income of $1.2 million in the previous year [2] Revenue Breakdown - Professional sales services revenue fell 4% to $8.7 million, primarily due to lower diagnostic imaging equipment deliveries from GE HealthCare [3] - The IT segment saw a slight increase of 0.9% to $10.7 million, driven by stronger network services, while the equipment segment remained nearly flat at $0.5 million, up 0.8% [3] Profitability Metrics - Gross profit decreased by 2.9% to $11.8 million, with a margin of 59%, down from 60% a year ago [4] - Selling, general and administrative (SG&A) expenses surged 11.2% to $12.1 million, contributing to an operating loss of $0.4 million compared to an operating income of $0.9 million in the prior year [5] Cash Flow and EBITDA - Adjusted EBITDA fell to a loss of $0.3 million from a positive $1.2 million in the previous year, while cash flow from operations improved to $6.2 million from $1.7 million [6] Management Commentary - Management attributed revenue decline to fewer GE HealthCare imaging equipment deliveries, with deferred commission revenue increasing to $38.1 million from $31.7 million [7] - Monthly recurring revenue in the IT segment represented 89% of segment revenues, up from 83% in the prior year [7] Operating Expenses - Operating expenses rose 9.5% to $12.2 million, mainly due to higher salesforce compensation and investor relations costs [8] Factors Influencing Performance - The quarterly loss was driven by contracting gross profit and rising SG&A expenses, with IT division margins narrowing due to a shift towards lower-margin network services [9] - Interest income decreased due to lower interest rates, although tax expenses declined, partially offsetting losses [10] Future Outlook - Vaso did not provide formal guidance for the remainder of 2025 but expressed confidence in ongoing IT recurring revenues and a strong deferred revenue balance [11] - The company remains bound by its sales representation agreement with GE HealthCare through 2026 and drew a short-term loan in China to support working capital needs [12]