NowVertical Group (NOW) Q3 2025 earnings summary

Executive summary

• Year-to-date revenue reached $27.7 million, with Q3 2025 revenue at $9.1 million; strategic accounts now contribute 69% of total revenue, growing 23% year-over-year.

• EBITDA for the year was $5.4 million, up 17% year-over-year, with Q3 EBITDA at $1.8 million (20% margin); operating income was $2.5 million YTD, up 55% year-over-year.

• Integration and Google Cloud partnerships drove high-margin, recurring revenue and industry-leading margins.

• Completed integration to a unified brand and business model, focusing on enterprise and strategic accounts.

• Administrative expenses rose 9% in Q3 2025 to $4.3 million, but fell 16% YTD to $11.1 million.

Financial highlights

• Q3 gross margin was 51%, exceeding the 50% target, with gross profit of $4.7 million.

• Top 30 strategic accounts contributed $19 million YTD, up 23% year-over-year, representing 69% of total revenue.

• Google Cloud partnership revenue grew 42% year-over-year, reaching $3.9 million YTD and creating 19–20 new opportunities.

• Integration revenue increased 82% year-over-year to $3.4 million YTD, now 12% of total revenue.

• Q3 revenue was impacted by a $1 million FX deflation due to Argentine peso devaluation; local currency revenue in Argentina grew 18% quarter-over-quarter.

Outlook and guidance

• Management expects continued growth from enterprise accounts and recurring revenue, leveraging a stronger balance sheet and expanded Google Cloud partnership.

• Strong pipeline for 2026, with robust renewal and transformation program opportunities and a focus on AI-driven offerings.

• Expectation to generate positive free cash flow in 2026, with no anticipated risk of dilution.

• Focused investments planned in commercial engine and go-to-market capabilities, especially in North America and EMEA.

• Strategic account program targets 25% growth rate and expansion to new strategic accounts.