Avante (XX) Q1 2025 earnings summary

Executive summary

• Achieved 46% year-over-year revenue growth in Q1 2025, reaching CAD 7.9 million, driven by organic growth, new product launches, and the NSSG acquisition.

• Recurring monthly revenue increased by 23% year-over-year, reflecting both organic growth and acquisition impact, with strong client retention at 98%.

• Positive adjusted EBITDA in 8 of the last 10 quarters, with Q1 2025 adjusted EBITDA at CAD 363,000.

• Company is bank debt-free with CAD 6.2 million in cash and short-term investments and CAD 12 million in undrawn credit facilities.

• Management maintains a positive outlook for FY2025, focusing on organic growth, strategic acquisitions, and international expansion.

Financial highlights

• Q1 2025 revenue: CAD 7.9 million, up from CAD 5.4 million in Q1 2024.

• Gross profit rose 47% to CAD 3 million; gross margin stable at 38%.

• Adjusted EBITDA from continuing operations was CAD 363,000, slightly down from CAD 407,000 in Q1 2024.

• Net loss from continuing operations was $(128)K in Q1 2025, improving from $(2,738)K in Q4 2024.

• Cash and GIC investments totaled $6,236K at June 30, 2024, with no funded debt.

Outlook and guidance

• Expect continued improvement in revenues, cash flow, and EBITDA, driven by organic growth, new products, and increased NSSG revenues.

• International revenue expected to rise as NSSG enables global client service.

• Positive outlook for fiscal 2025, with ongoing M&A activity and new service launches.

• Plans to invest in tuck-in acquisitions and build recurring revenues.

• Targets Adjusted EBITDA margins consistent with industry peers and growth in adjusted net income per share.