Route1 (ROI) Q1 2025 earnings summary

Executive summary

• Launched a new actionable business intelligence (ABI) software for ALPR clients, with phased releases planned through Fall 2025.

• Q1 2025 was challenging due to minimal PocketVault P-3X sales to the State Department and shipment delays for rugged device orders.

• New contracts secured in April 2025 exceeded CAD $1.4 million, with most shipments completed by May.

Financial highlights

• Q1 2025 revenue was CAD $2.23 million, down from CAD $3.93 million in Q4 2024 and CAD $4.03 million in Q1 2024.

• Gross profit for Q1 2025 was CAD $910,000, compared to CAD $1.39 million in Q4 2024.

• Net loss for Q1 2025 was CAD ($214,000), versus a net loss of CAD ($301,000) in Q4 2024.

• Adjusted EBITDA for Q1 2025 was CAD ($190,000), down from CAD $130,000 in Q4 2024.

• Cash balance at March 31, 2025 was CAD $1, with total current assets of CAD $1.94 million and current liabilities of CAD $6.32 million.

Outlook and guidance

• Revenue in the first two months of Q2 2025 already exceeds total Q1 2025 revenue.

• Management expects a return to operating profitability in Q2 2025.

• Anticipates monetization of Employee Retention Credits (ERCs) in Q2 or Q3 2025.

• Expects new ABI software to drive recurring revenue and client support contracts.