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Quorum Information (QIS) investor relations material

Quorum Information Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary28 Aug, 2025

Executive summary

  • Achieved 3% year-over-year revenue growth to $10.3 million in Q2 2025, with SaaS revenue up 1% to $7.3 million and BDC revenue up 11% to $2.7 million, driven by strong demand from new dealership customers.

  • Adjusted EBITDA improved sequentially to $1.8 million (18% of revenue), though down from 20% year-over-year, supported by an improvement plan implemented in Q1 2025.

  • Fully repaid the $0.8 million Cash Flow Loan component of the BDC Capital loan, reducing total debt and improving the balance sheet.

  • Annual recurring revenue reached $40 million, up from $38.8 million in Q2 2024.

  • Over 1,400 dealership customers in North America use at least one of 13 integrated software solutions.

Financial highlights

  • Gross margin was $5.0 million (49% of revenue), with SaaS gross margin at 65% (down from 67%) and BDC gross margin improving to 20% from 15% in Q1 2025.

  • Adjusted EBITDA was $1.8 million (18% margin), down from $2.0 million (20% margin) year-over-year, due to higher software development costs.

  • Cash EBITDA increased to $1.4 million (13% margin), up from $1.3 million year-over-year.

  • Net income for Q2 2025 was $395,377, up 2% from Q2 2024, with net income per share at $0.005.

  • Net working capital at $4.2 million and cash/cash equivalents at $3.6 million as of Q2 2025.

Outlook and guidance

  • Management remains focused on cross-selling, cost efficiency, and leveraging AI to drive profitability and efficiency gains, especially in BDC and service CRM.

  • Improved balance sheet positions the company for future growth investments and M&A, with a focus on Canadian opportunities.

  • Plans to continue annual prepayments of 15% on the BDC Capital Mezzanine Loan until maturity in August 2027.

  • Cautious outlook for the second half of the year due to automotive tariffs impacting dealership inventories and sales.

  • No specific BDC gross margin target provided, but further AI-driven improvements are anticipated over the next 2-3 years.

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Frequently asked questions

Quorum Information Technologies Inc develops, markets, and supports software solutions for automotive dealerships. Its platform includes dealership management systems, service lane technology, and customer relationship management tools. The company is headquartered in Calgary, Canada, and its shares are listed on the TSX Venture Exchange.

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