Airthings (AIRX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached USD 9.2 million, a 3% year-over-year decline, with a 13% drop in the Consumer segment and strong growth in Business and Pro segments.

• Gross margin improved to 61%, stable year-over-year and up from 45% in Q4 2024.

• Strategic review initiated, including a signed Letter of Intent for potential sale of Business segment assets; process ongoing with multiple interested parties.

• Net loss widened to USD 3.4 million from USD 1.0 million in Q1 2024, mainly due to negative net financial items.

• Collaboration with Harvard on air quality impact from LA wildfires, leveraging proprietary data.

Financial highlights

• Consumer segment revenues declined 13% year-over-year due to lower realized prices and cautious distributor purchasing; 71,000 devices shipped.

• Business segment revenues grew 56% year-over-year to USD 1.8 million, with high gross margin at 78% and low churn rates.

• Pro segment revenues increased to USD 0.68 million, with gross margin at 89%.

• Annual recurring revenue (ARR) reached USD 4.4 million, up 4%, with Business segment ARR at USD 3.3 million and Pro segment at USD 1.1 million.

• EBITDA was negative USD 2.1 million, mainly due to revenue decline.

Outlook and guidance

• Q2 2025 revenue guidance is USD 7.0–9.0 million, reflecting continued uncertainty, especially in the Consumer segment.

• No reiteration of previous EBITDA break-even targets for 2025/2026 due to increased uncertainty; additional capital may be required.

• Strategic review and potential asset sale expected to strengthen the foundation for long-term growth.