Tiny (TINY) Q2 2025 earnings summary

Executive summary

• Closed the Serato acquisition on May 12, 2025, contributing to consolidated results for half the quarter and boosting recurring revenue, adjusted EBITDA, and free cash flow.

• Adjusted EBITDA rose 22% year-over-year to $8.2 million in Q2 2025, with margin expanding to 16% from 13%.

• Free cash flow improved to $6.0 million in Q2 2025, a $9.7 million increase year-over-year, with LTM free cash flow at $20.9 million, up $18.9 million year-over-year.

• Letterboxd membership grew 47% year-over-year to 21.4 million, driving Tiny Fund I's net asset value to $142 million.

• Net income reached $11.0 million in Q2 2025, compared to a net loss of $1.7 million in Q2 2024.

Financial highlights

• Q2 2025 revenue was $51.0 million, a 4% increase year-over-year when adjusted for divestitures.

• Recurring revenue in Q2 2025 was $13.2 million, up 37% year-over-year, now 26% of total revenue and expected to annualize over $64 million with Serato.

• Adjusted EBITDA for Q2 2025 was $8.2 million, with LTM adjusted EBITDA at $35.3 million.

• Free cash flow per share improved to $0.05 in Q2 2025 from $(0.01) in Q2 2024.

• Debt repayment of $5.2 million in Q2 2025; net debt to pro forma adjusted EBITDA reduced to 2.8x.

Outlook and guidance

• Recurring revenue and adjusted EBITDA expected to continue improving through 2025, driven by cost discipline, revenue growth initiatives, and Serato's product roadmap.

• Ongoing focus on deleveraging and capital allocation flexibility, with leverage ratio targeted below 2.5x.

• Continued evaluation of acquisition opportunities and capital compounding at high rates of return.

• Full financial impact of Serato acquisition expected in Q3 2025, as Q2 included only half a quarter.