Plurilock Security (PLUR) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw 165% year-over-year growth in Critical Services revenue to CAD 2.7 million, now 21.2% of total revenue, up from 9.9% last year.

• Total Q3 2025 revenue rose 8% year-over-year to CAD 15.4 million, driven by software and services, while hardware sales declined.

• Strategic focus shifted to higher-margin business, cost optimization, and expansion into defense, NATO, and allied markets.

• Operational streamlining and divestiture of non-core assets resulted in CAD 2.7 million annualized cost savings and improved balance sheet flexibility.

• Management expects continued expansion in higher-margin Critical Services and margin improvement as revenue mix shifts toward recurring and services-led work.

Financial highlights

• Q3 2025 revenue: CAD 15.4 million (up from CAD 14.3 million in Q3 2024); nine-month revenue: CAD 50.5 million (up from CAD 40.9 million year-over-year).

• Software license and maintenance revenue: CAD 11.2 million (72.7% of total), up from CAD 10.1 million (70.9%).

• Hardware and system sales: CAD 1.5 million (9.8% of total), down from CAD 3.1 million (22%).

• Professional services revenue: CAD 2.7 million (17.5% of total), up from CAD 1 million (7.1%).

• Gross margin improved to 8.8% from 6.9% year-over-year; nine-month gross margin was 10.7%.

• Adjusted EBITDA loss for Q3 2025 was CAD 1.6 million, an 11.5% improvement year-over-year.

• Net loss for Q3 2025 was CAD 1.02 million, or CAD 0.01 per share, compared to CAD 3.99 million, or CAD 0.08 per share, in Q3 2024.

• Cash and equivalents at September 30, 2025, were CAD 1.5 million; post-quarter CAD 3 million convertible debenture closed.

Outlook and guidance

• Entering Q4 with rising deal activity across commercial, public sector, and defense markets.

• Multi-year growth opportunity expected across commercial and government sectors, with pipeline acceleration in both.

• Operating leverage anticipated to improve as revenue mix shifts further toward higher-margin services.

• No plans to raise equity in the next 12-18 months; focus remains on reaching breakeven through margin expansion.

• OpEx run rate targeted at CAD 10 million for 2026, with most cost savings realized in Q4 and beyond.

• Company anticipates potential breakeven during 2026, supported by a growing pipeline and improved cost structure.