Pivotree (PVT) Q3 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of positive EBITDA and third straight quarter of positive net income, with adjusted EBITDA at $1.8 million (12% margin) and net income just under $1 million for Q3 2025.

• Trailing twelve months (TTM) adjusted EBITDA totaled $7.2 million, reflecting sustained profitability.

• Focus remains on expanding new customer logos and leveraging AI and machine learning across all service layers, with increasing importance in client conversations and solution development.

• Business transformation centers on data-driven, AI-powered solutions in commerce, with operational discipline and cost restructuring supporting profitability.

Financial highlights

• Q3 2025 total revenue was $15.5 million, down 10% sequentially and 17.7%-18% year-over-year, mainly due to legacy business runoff.

• MIPS revenue reached $3.9 million, up 5% sequentially and 2.3% year-over-year, with double-digit growth in SKU Build offerings.

• Professional services revenue was $9.5 million, down 10% sequentially and 6.5%-7% year-over-year, mainly due to project completions and ramp-downs.

• Gross margin improved to 46.8% from 38.7% a year ago, supporting profitability.

• Cash balance at quarter-end was $11.8 million, up from $5.5 million a year ago, with strong AR collections and positive operating cash flow.

Outlook and guidance

• Priorities for 2025 include closing new logo pipeline initiatives, investing in MIPS revenue growth, accelerating agentic AI proof-of-concepts for 2026, and maintaining 7-10% EBITDA margins with positive cash flow.

• Professional services bookings and new logo wins expected to support revenue trajectory into 2026.

• Legacy managed services revenue expected to decline by about half year-over-year into 2026.

• Ongoing investment in automation and AI orchestration layers to support frictionless commerce strategy.