illumin Holdings (ILLM) investor relations material

Executive summary

• Revenue grew 13% year-over-year in Q2 2025 to $33.1M, led by a 114% increase in Exchange service revenue and 5% growth in self-service revenue, offset by a 24% decline in managed service revenue.

• Net loss for Q2 2025 was $5.8M, up from $1M in Q2 2024, mainly due to higher operating costs, severance, and foreign exchange losses.

• Cost reduction and restructuring initiatives, including a 10% North American workforce reduction and real estate footprint decrease, were implemented to enhance profitability and improve cash flow.

• Investments in AI and platform enhancements, such as a new AI forecasting tool, drove customer adoption and higher average revenue per user.

• The company remains focused on balancing cost management with continued investment in growth initiatives.

Financial highlights

• Q2 2025 revenue was $33.1M, up from $29.2M in Q2 2024.

• Gross profit was $14.4M, a 3% increase year-over-year; gross margin declined to 43% from 48% due to product mix.

• Adjusted EBITDA loss was $1M, compared to a positive $0.5M in the prior year period.

• Cash at quarter-end was $48.3M, down from $54M at the end of March and $56M at year-end 2024, mainly due to platform investments, lease payments, and share repurchases.

• Operating cash flow for the first half of 2025 was $10K, down from $6.2M in the prior year period.

Outlook and guidance

• Cost reduction and restructuring actions are expected to be completed by year-end, with benefits to margins and cash flow anticipated in the second half.

• Managed service is expected to improve in the second half, supporting a modest recovery in gross margin.

• Management expects continued revenue and results fluctuation due to macroeconomic uncertainty, high inflation, and U.S. trade policy impacts.

• Continued focus on expense management and targeted investments to drive profitable growth.