NowVertical Group (NOW) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $8.2 million–$8.3 million, a 13% year-over-year decline, mainly due to planned LATAM actions, multi-year license deal adjustments, Chile restructuring, and deferred public sector contracts in Brazil.

• H1 2025 revenue reached $18.6 million, showing a slight year-over-year increase or a 4% rise, with strategic accounts now contributing over 70% of revenue, up from less than 45% in 2023.

• Strategic accounts grew 44%–97% year-over-year and now represent the majority of revenue.

• The company is focused on expanding high-value, recurring, and profitable revenue streams through strategic accounts and technology partnerships.

Financial highlights

• Q2 2025 adjusted EBITDA was $1.0 million, down 29% year-over-year; H1 2025 adjusted EBITDA rose 36% to $3.6 million.

• Q2 2025 operating income was $0.6 million, up 41% year-over-year; H1 2025 operating income surged 622% to $2.1–$2.2 million.

• Q2 2025 gross profit was $3.8 million, a 24% decrease year-over-year; H1 2025 gross profit was $9.0 million, down 6%.

• Administrative expenses fell 31% in Q2 2025 and 22%–26% year-to-date.

Outlook and guidance

• Management is confident in achieving a $50 million revenue run rate and $10 million EBITDA run rate, with a strong pipeline and focus on high-value engagements.

• No formal guidance provided, but strategic account growth and revenue mix shift are expected to enhance predictability and quality.

• Focus on scaling enterprise clients and expanding capabilities across NA, EMEA, and LATAM.