SSC Security Services (SECU) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw improved gross margins and consistent adjusted EBITDA despite an 8.9% year-over-year revenue decline due to fewer temporary contracts.

• Recurring revenue base continues to grow profitably, with a focus on operational management and cost control.

• Company remains debt-free, well-capitalized, and continues disciplined share buybacks and dividend payments.

Financial highlights

• Revenue for Q2 2025 was $27.7M, down from $30.4M in Q2 2024, reflecting seasonality and fewer short-term contracts.

• Gross profit margin improved to 16.1% from 15.2% year-over-year; six-month margin at 16.3% vs. 15.5%.

• Adjusted EBITDA was $1.0M ($0.06/share), consistent with $1.1M ($0.06/share) in Q2 2024.

• Comprehensive net income was $0.0M ($0.00/share) vs. $0.7M ($0.03/share) last year; adjusted net income was $0.4M ($0.02/share) vs. $0.01M ($0.00/share).

Outlook and guidance

• Anticipates continued demand for integrated security services and potential growth via disciplined acquisitions.

• Plans to convert legacy assets to cash over the next year to fund business expansion.

• Will maintain minimal to no debt, focus on strong margins, and continue dividends and share buybacks.