POSaBIT Systems (PBIT) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted EBITDA of $2.5 million for 2025, up over 400% from 2024, marking the highest in company history and achieving profitability.

• Cash on hand increased by 76% to $1.8 million, reflecting disciplined execution and operational efficiency.

• Transitioned to an agent model for payment processing, resulting in lower reported revenue but improved profitability and cash flow.

• Launched POSaBIT Brands, an AI-driven platform expanding the addressable market to cannabis producers and processors, expected to drive future growth.

• Maintained a focus on operational leverage and cost discipline, positioning for continued growth.

Financial highlights

• Total revenue for 2025 was $10 million, down from $15.3 million in 2024 due to the payment processing model shift; Adjusted Revenue was $14.1 million.

• Gross profit increased to $7.2 million, with Adjusted Gross Profit at $11.4 million and Adjusted Gross Profit Margin of 80.4%.

• Operating expenses reduced by 24% to $9.3 million, and operating loss reported at $1.99 million.

• Net loss improved to $2 million from $5.7 million in 2024.

• Adjusted EBITDA turned positive at $2.5 million, compared to a loss of $761,000 last year.

Outlook and guidance

• Management expects double-digit growth in gross profit dollars for 2026, driven by recurring SaaS and new product launches.

• POSaBIT Brands anticipated to be a major revenue source as it targets the other half of the cannabis market and doubles addressable market.

• No plans to increase team size, with growth expected to come from operational leverage.

• Entering 2026 with strong momentum, a healthy balance sheet, and confidence in long-term opportunities.