Boardwalktech Software (BWLK) Q3 2025 earnings summary

Executive summary

• Achieved significant milestones in 2024, including a repositioned go-to-market strategy, expansion of the channel partner program to 10 partners and advisors, and new client wins such as TCS and ServiceNow.

• Launched the Boardwalk Intelligent Information Platform, saw early adoption of Unity Central, and delivered the Velocity product to a top five U.S. bank.

• Adjusted EBITDA loss improved 26% year-over-year and 21% sequentially in Q3 FY25, reflecting operational progress.

• Closed a $4 million line of credit facility, enhancing working capital flexibility.

• Management highlighted a pivotal year with strategic repositioning, new client wins, and cost savings at the high end of guidance.

Financial highlights

• Q3 Fiscal 2025 revenue was $1.29 million, up 1% sequentially but down 12% year-over-year from $1.47 million, impacted by two non-renewals due to customer reorganizations.

• Professional services revenue rose 61% sequentially, representing 22% of total revenue.

• Gross margin for Q3 was 88.4%, slightly down from 88.6% in Q2 and 89.1% a year ago.

• Net loss for Q3 was $0.59 million (1 cent per share), improved from $0.72 million in Q2 and $0.78 million a year ago.

• Adjusted EBITDA loss was under $290,000, a 21% sequential and 26% year-over-year improvement.

Outlook and guidance

• Recurring revenue from new SaaS licenses grew at a 39% CAGR over the trailing 12 months.

• Pipeline is stronger than ever, with several late-stage engagements and anticipated higher growth rates.

• Expectation of sustainable EBITDA-positive quarters ahead, with continued focus on margin improvement and operating leverage.

• Over $0.9 million in year-to-date cost savings achieved, exceeding prior guidance.