NowVertical Group (NOW) Q1 2025 earnings summary

Executive summary

• Achieved $10.4 million in Q1 2025 revenue, a 23% year-over-year increase, driven by organic growth and excluding divested businesses, marking the fifth consecutive quarter of growth.

• EBITDA reached $2.5 million, up 119% year-over-year, with a 24% margin, aligning with the $10 million annual run-rate target.

• Income from operations turned positive for the fourth consecutive quarter, reaching $1.5 million, a 1,253% year-over-year improvement.

• Net loss narrowed to $0.7 million, a 63% year-over-year decrease excluding divestitures, reflecting improved operational efficiency.

• Management team now holds 27% equity, aligning interests with shareholders.

Financial highlights

• Revenue increased from $8.4 million in Q1 2024 to $10.4 million in Q1 2025, reflecting 23% organic growth and excluding divestitures.

• EBITDA rose from $1.2 million to $2.5 million, a 119% year-over-year increase, with a 24% margin.

• Gross profit reached $5.1 million, up 15% year-over-year, maintaining a 50% margin.

• Income from operations improved from a $0.1 million loss to a $1.5 million gain.

• Debt reduced from $28.8 million at end of 2023 to $15.6 million at end of Q1 2025, with a debt/EBITDA ratio now at 1.5x.

Outlook and guidance

• Near-term goal is a $50 million revenue run rate and $10 million EBITDA run rate, with a focus on integration revenue and scaling enterprise clients across North America, EMEA, and LATAM.

• Management expects sustained organic revenue growth and strong margins, supported by operational discipline and improved payment schedules.

• Plans to reignite inorganic growth once organic transformation stabilizes.

• Deepening technology partnerships and expanding global capabilities.

• Continued investment in commercial capabilities, especially in North America and EMEA.