Boardwalktech Software (BWLK) Q2 2025 earnings summary

Executive summary

• Focused on a land and expand strategy, driving high-margin recurring SaaS revenue and deepening customer relationships, especially with Fortune 500 clients.

• Transitioning sales model to emphasize partner teaming, reducing acquisition costs and accelerating sales cycles.

• Significant momentum in the financial services sector, with major deployments at a top five U.S. bank and expanding partner ecosystem.

• Ongoing cost-saving measures and realignment are supporting progress toward cash break-even and improved Adjusted EBITDA.

• Q2 FY25 revenue reached $1.28 million, up 2% sequentially but down 16% year-over-year.

Financial highlights

• Q2 2025 revenue was $1.3M, down 16% year-over-year but up 2% sequentially from Q1.

• Annualized recurring revenue (ARR) at quarter-end was $4.6M.

• Gross margin for Q2 was 88.6%, up from Q1 but slightly down from 90.1% in Q2 last year.

• Adjusted EBITDA loss was $366K, a 10% sequential improvement and nearly flat year-over-year.

• Net IFRS loss for Q2 was $0.7M ($0.01 per share), a 10% sequential and 1% year-over-year improvement.

• Cash flows from operations were a positive $219K, up 24% year-over-year.

• Ended Q2 with $0.2M cash, $0.6M receivables, $2.2M net debt, $0.1M working capital, and $0.9M available credit facility.

Outlook and guidance

• Anticipates higher recurring revenue growth rates and similar margins in coming quarters, supported by a robust sales pipeline.

• Expects to achieve cash break-even and improved Adjusted EBITDA with modest revenue growth and continued cost discipline.

• Predicts increased revenue and business improvement in 2025, driven by technology validation and expanding client base.

• Ongoing multi-year engagement with a top 5 US bank is expected to drive further growth.