Siyata Mobile (SYTA) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was $2.47M, up 4.7% year-over-year, driven by a 66% increase in North American sales, offset by a 163% decrease in EMEA sales.

• Gross margin declined to 21.5% from 36.6% year-over-year due to lower-margin product mix and inventory liquidation.

• Net loss widened to $3.79M from $2.80M in Q1 2024, reflecting higher operating and finance expenses.

• Adjusted EBITDA was negative $2.58M, down from negative $1.53M year-over-year.

• A merger agreement was signed with Core Gaming, Inc., a mobile gaming developer, in a reverse takeover transaction.

Financial highlights

• Revenue: $2.47M (Q1 2025) vs $2.36M (Q1 2024), a 4.7% increase.

• Gross profit: $530K (21.5% margin) vs $863K (36.6% margin) year-over-year.

• Net loss: $3.79M vs $2.80M year-over-year.

• Cash balance: $547K as of March 31, 2025, up from $182K at year-end 2024.

• Working capital: negative $3.18M as of March 31, 2025.

Outlook and guidance

• The company’s future depends on continued success of its vehicle-mounted communications, rugged phones, and booster products, and its ability to secure working capital.

• Ongoing merger with Core Gaming, Inc. is expected to transform the business, with Core Gaming shareholders to own ~90% of the combined entity.

• New equity line of credit and registered offering up to $12.2M to support liquidity.