Pivotree (PVT) Q2 2025 earnings summary

Executive summary

• Achieved strong bottom-line performance in Q2 2025, with adjusted EBITDA of $1.7 million (10% margin) and net income of $2.5 million, reflecting operational efficiency and cost containment.

• Revenue declined 14.7% year-over-year to $17.3 million, mainly due to legacy managed services decline and foreign exchange headwinds.

• Focused on new logo acquisition and expansion, with over 10 new customers added in the trailing 12 months and one-third of customers expanding annual spend by over 50%.

• Data-driven initiatives and tailored offerings for tech-enabled and tech-light customers are driving deeper engagement.

• Achieved third consecutive quarter of positive Adjusted EBITDA and second quarter of positive Net Income.

Financial highlights

• PS and MIPS revenue totaled $14.2 million, down 4% sequentially (excluding legacy managed services), but flat on a constant currency basis.

• MIPS revenue reached $3.7 million, with a 7.3% year-over-year decline after a prior-year peak.

• Q2 gross margin was 46.2%, up from 44.2% last year, with gross profit of $8.0 million.

• Adjusted EBITDA was $1.7 million (10% of revenue), up nearly $1.5 million year-over-year, despite a $600,000 FX loss.

• Ended the quarter with $8.6 million in cash and $1.5 million in operating cash flow.

Outlook and guidance

• Continued focus on sustainable profitability, operational discipline, and margin improvement, especially in MIPS.

• Priorities for 2025 include closing new logo pipeline initiatives, investing in Managed & IP Solutions, and generating EBITDA and cash flow.

• Expecting net income to benefit from reduced depreciation and amortization in future quarters.

• No specific revenue guidance provided, but legacy managed services revenue expected to continue declining.

• Will consider increasing sales and marketing spend as confidence in LTV/CAC ratios and deal closures grows, maintaining a 7%-10% EBITDA margin target.