Adcore (ADCO) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered higher gross profit, improved margins, positive adjusted EBITDA, and 35% APAC revenue growth, driven by Media Blast adoption, client growth, and AI-driven innovations.

• Net loss reduced to CAD $226K, down from CAD $425K in Q2 2024, and operating loss decreased by 40%.

• Management remains optimistic for H2 2025, expecting stronger Q3 and Q4 performance with expanding budgets and elevated activity.

• Launch of Proposaly app in BETA, expanding sales workflow solutions and AI-powered features.

Financial highlights

• Q2 2025 revenue was CAD $6.5M, a 1% decrease year-over-year from CAD $6.6M.

• Gross profit increased 6% to CAD $3.1M; gross margin rose to 47% from 44% year-over-year.

• Adjusted EBITDA turned positive at CAD $156K, up from a loss of CAD $173K last year.

• Cash and cash equivalents grew 23% year-over-year to CAD $9.0M as of June 30, 2025.

• Net loss for Q2 2025 was CAD $226K, compared to CAD $425K in Q2 2024.

Outlook and guidance

• Targeting CAD $40M revenue for 2025, with expectations for stronger H2 due to seasonality and expanding budgets.

• Management expects continued positive trends in APAC, further AI-driven efficiency gains, and SaaS ARR of $4M–$5M.

• Focus remains on achieving consecutive quarters of positive adjusted EBITDA.