Water Intelligence (WATR) Q1 2025 TU earnings summary

Financial performance

• Q1 2025 revenue rose 4% to $21.3M, with EBITDA up 8.3% to $3.8M; April saw 20% revenue growth, bringing YTD revenue up 8% to $29.1M and EBITDA up 13% to $4.8M.

• EBITDA margins improved to 16.3% YTD (from 15.6%), with cash at $7.4M and Net Total Debt to EBITDA Adjusted ratio at 1.50.

• US corporate locations grew 5% to $14.3M, international corporate locations surged 47% to $3.1M, driven by Ireland.

• Franchise royalty and related activities declined due to reacquisitions, but overall group growth remained strong.

• Profit before tax adjusted slightly down 2% YTD to $2.17M, but adjusted EBITDA margin increased to 17.7%.

Strategic and operational developments

• Launched a competitive strategy focused on preventive maintenance, leveraging a new partnership with StreamLabs Water (Chubb Insurance).

• Integrated platform now offers end-to-end solutions: monitoring, analytics, minimally invasive leak detection, and aftercare.

• Solutions delivered through American Leak Detection (ALD) in 46 US states, serving 200,000+ households annually.

• Opened Dallas headquarters for ALD in May to support US operations.

• Platform and solutions are being expanded internationally to the UK, Ireland, Canada, and Australia.

Capital allocation and market initiatives

• Resources allocated for organic growth, acquisitions (franchisees, plumbing, product companies), and share buybacks.

• Exploring US listing options; shares now purchasable in the US via Interactive Brokers.

• Focus remains on maintaining a strong balance sheet to support strategic execution.