Tiny (TINY) Q3 2025 earnings summary

Executive summary

• Achieved record quarter with revenue up 16% year-over-year to $54.0 million, recurring revenue up 72% to $16.9 million (31% of total), and Adjusted EBITDA up 39% to $10.1 million, driven by the Serato acquisition and Digital Services.

• Free Cash Flow surged to $15.1 million, with per share rising to $0.51, and net income reached $0.1 million, reversing a prior loss.

• Completed the sale of We Work Remotely for $9.8 million, generating a 53% IRR and 13x multiple on invested capital.

• Letterboxd user base grew 49% year-over-year to 23.4 million, and all five Mateína zero sugar flavors launched nationally at Whole Foods USA.

• Increased LP stake in Tiny Fund I to 21.6% via discounted purchases, with ongoing opportunities for further investment.

Financial highlights

• Total revenue reached $54.0 million, up 16% year-over-year and 8% sequentially, with 27% growth excluding disposed entities.

• Recurring revenue was $16.9 million, a 72% increase year-over-year, now 31% of total revenue, supported by Serato, Media.net, and WooCommerce.

• Adjusted EBITDA was $10.1 million, up 39% year-over-year, with margin at 19%, approaching the 20% target.

• Free Cash Flow was $15.1 million, up $13.7 million from the previous quarter, with per share at $0.51.

• Net income was $0.1 million, reversing a $9.6 million loss in Q3 2024.

Outlook and guidance

• Serato expected to continue driving growth in Q4, supported by pricing initiatives and product roadmap.

• Management expects continued growth from integrations and feature releases, focusing on organic growth and disciplined capital deployment.

• Active pipeline of tuck-in and acquisition opportunities, with ongoing share repurchase program via NCIB.

• Anticipates future growth in transaction fees, subscriptions, and advertising from Dribbble Services Marketplace.

• Enterprise deal pipeline in Creative Platform remains strong, with potential for large deals to close in Q4 or early 2026.