Quorum Information Technologies (QIS) Q2 2025 earnings summary

Executive summary

• Achieved 3% year-over-year total revenue growth to $10.3 million in Q2 2025, with SaaS revenue up 1% to $7.3 million and BDC revenue up 11% to $2.7 million.

• Adjusted EBITDA improved sequentially to $1.8 million (18% margin), though down from 20% margin year-over-year, driven by cost-saving initiatives.

• Cash EBITDA reached $1.4 million, up from $1.3 million year-over-year.

• Annual recurring revenue reached $40 million, up from $38.8 million in Q2 2024.

• Over 1,400 dealership customers in North America use at least one of 13 integrated software solutions.

Financial highlights

• Gross margin was $5 million (49% of revenue), compared to $4.9 million (50%) a year ago; SaaS gross margin declined to 65% due to higher third-party costs.

• Adjusted EBITDA margin was 18% in Q2 2025, down from 20% in Q2 2024.

• Cash EBITDA margin was 13% in Q2 2025.

• Net income for Q2 2025 was $395,377, up 2% from Q2 2024; net income per share was $0.005.

• Net working capital stood at $4.2 million; cash and cash equivalents at $3.6 million as of June 30, 2025.

Outlook and guidance

• Management remains bullish on BDC and service CRM demand, focusing on cross-selling, cost efficiency, and leveraging AI to drive profitability.

• Ongoing investment in AI-driven efficiency improvements and new UI/UX for the Dealership Management System.

• Improved balance sheet positions the company for future growth investments and continued annual prepayments of 15% on the BDC Capital Mezzanine Loan until maturity in August 2027.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties.