AvidXchange (AVDX) investor relations material

Executive summary

• Revenue for Q2 2025 increased 5.2% year-over-year to $110.6 million, driven by higher software and payment transaction volumes from new and existing customers.

• Net loss for Q2 2025 was $9.5 million, compared to net income of $0.4 million in Q2 2024, primarily due to increased operating expenses and merger-related costs.

• Non-GAAP net income remained flat at $10.7 million, and adjusted EBITDA was $17.4 million, nearly unchanged year-over-year.

• Pending acquisition led to suspension of 2025 financial outlook and cancellation of earnings call.

• Cash flow from operations improved to $30.6 million for the first half of 2025, up from $18.9 million in the prior year period.

Financial highlights

• Q2 2025 revenue: $110.6 million, up 5.2% year-over-year; six-month revenue: $218.5 million, up 3.7%.

• GAAP gross profit was $73.6 million (66.6% margin), up from $68.7 million (65.3%) year-over-year.

• Non-GAAP gross profit was $81.6 million (73.8% margin), up from $76.3 million (72.6%) year-over-year.

• Interest income declined due to lower cash balances and interest rates, falling to $10.6 million from $11.8 million year-over-year.

• General and administrative expenses included $6.4 million in transaction costs related to the proposed merger.

Outlook and guidance

• Management expects total revenue to continue increasing year-over-year, with payment revenue comprising a greater share as transaction volumes grow.

• Anticipates continued operational efficiency gains and a shift toward electronic payments, reducing cost of revenues as a percentage of revenue.

• Interest income may decline if the Federal Reserve cuts rates; payment revenue from political advertising expected to decrease in 2025 compared to 2024.

• Financial outlook for fiscal 2025 suspended due to pending acquisition.

• No earnings teleconference held for Q2 2025.