Pivotree (PVT) Q1 2025 earnings summary

Executive summary

• Achieved Adjusted EBITDA of $2.0 million (10% margin), up 15% sequentially and over $1.7 million year-over-year, marking a record since IPO and reflecting improved operational efficiency and profitability focus.

• Revenue reached $19.2 million, up 5% sequentially but down 8.5% year-over-year, primarily due to expected declines in legacy managed services.

• Net income for Q1 was $2.0 million, marking a return to profitability and the first positive net income since IPO.

• Strategic divestiture of the WMS business for $2.7 million, streamlining focus on core supply chain and data solutions.

• Total TCV bookings were $17.6 million, down 15% year-over-year but within expected range.

Financial highlights

• MIPS revenue was $3.7 million, up 8% sequentially but down 8% year-over-year; professional services revenue was $11.2 million, up 8% sequentially and down 3% year-over-year.

• Gross margin was 44.1% in Q1, slightly down from 45.7% last year but stable sequentially, with gross profit of $8.4 million.

• Cash at quarter-end was $6.5 million, increasing to $8.4 million after the WMS divestiture; net cash flow of $2.6 million was driven by core operations and working capital recovery.

• Adjusted EBITDA rose to $2.0 million from $0.2 million in the prior year period.

Outlook and guidance

• Focus remains on generating positive Adjusted EBITDA and operating cash flow, with continued investment in managed and IP solutions and new logo pipeline initiatives.

• Revenue guidance remains in the $17–19 million quarterly range, with low expected impact from recent tariff changes.

• Management expects continued focus on core products and R&D following the WMS divestiture, with growth strategies and profitability targets highlighted.