Pivotree (PVT) Q4 2025 earnings summary

Executive summary

• Achieved CAD 9.1 million ($9.1M) in cash flow from operations and adjusted EBITDA of CAD 6.7 million ($6.7M) for 2025, reflecting consistent cash generation and operational discipline.

• Achieved full-year profitability in 2025 with net income of $4.2M and Q4 net income of $0.5M, reversing prior year losses.

• Doubled new logo acquisition in 2025 to 18, up from 9 in 2024, amid strong demand for AI-driven, outcome-oriented solutions.

• Continued transformation of service delivery and product offerings through AI, notably in SKU Build, Control Tower, and Tower Talk solutions.

• Ended 2025 with a cash balance of $12.8M and no debt, supporting future growth initiatives.

Financial highlights

• Q4 2025 total revenue was $14.9M, down 4% sequentially and 18.4% year-over-year, mainly due to legacy managed services and professional services declines.

• MIPS revenue in Q4 was $4.1M, up 6% sequentially and 22.2% year-over-year, now outpacing legacy managed services.

• Q4 adjusted EBITDA was 8% of revenue ($1.2M); full-year adjusted EBITDA was 10% of revenue ($6.7M).

• Gross margin improved to 46% in Q4, up from 44% the prior year, with full-year gross margin at 45.7%.

• Operating expenses declined significantly, supporting the return to profitability.

Outlook and guidance

• 2026 is expected to be a year of transformation, with continued aggregate revenue declines before growth resumes.

• Focus on protecting and differentiating the core business, accelerating AI-enabled service delivery, and transforming revenue mix toward higher-margin MIPS offerings.

• EBITDA margin guidance reaffirmed at 7–10%, with expectations for further gross margin improvement due to automation and mix shift.

• Strategic focus shifts from stabilization to accelerating growth through AI-enabled automation and outcome-oriented pricing.

• Management expects continued evolution of the revenue mix and long-term value creation for shareholders.