Zoomd Technologies (ZOMD) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with $61.3M in revenue, 13% year-over-year growth, and strong profitability, ending with $22M in cash and no long-term debt.

• Net income for 2025 reached $14.8M, up 67% year-over-year, with cash from operations totaling $17.9M.

• Revenue base became more diversified, with over 30% year-over-year growth from customers outside the top two and one-third of annual growth from new clients.

• Expanded presence in North America and Europe, adding over 20 new clients across iGaming, fintech, and e-commerce.

• Strategic partnership with E2-Quadrat contributed to client acquisition and revenue growth, expanding sports and betting digital marketing.

Financial highlights

• Full year 2025 revenue was $61.3M, up 13% from $54.5M in 2024; Q4 2025 revenue was $7.5M, down 50% from Q4 2024 due to changes with two major customers.

• Gross margin for 2025 was 42.1% (vs. 39.5% in 2024); Q4 2025 gross margin was 33.7% (vs. 41% in Q4 2024).

• Adjusted EBITDA for 2025 was $14.8M, up 31% year-over-year; Q4 2025 adjusted EBITDA was $0.1M (vs. $3.2M in Q4 2024).

• Net income for 2025 was $14.8M (up 66%–67% year-over-year); Q4 2025 net income was $0.2M (vs. $3.1M in Q4 2024).

• Cash flow from operations was $17.9M in 2025 (vs. $7.7M in 2024); Q4 2025 cash flow from operations was $3.7M (vs. $2.6M in Q4 2024).

Outlook and guidance

• Recovery from major customer changes is expected to be gradual, with one customer showing improvement and the other still uncertain.

• Future growth expected from new clients, partnerships, and events like the 2026 FIFA World Cup; new clients typically take 3-6 months to reach full revenue contribution.

• Gross margin expected to remain within historical range, with fluctuations driven by customer and campaign mix.

• Actively evaluating selective M&A opportunities and considering a Normal Course Issuer Bid (NCIB) program, with updates expected after Q1 2026 results.

• Focus remains on scaling diversified growth and maintaining strict financial discipline.