Verimatrix (VMX) H1 2025 earnings summary

Executive summary

• H1 2025 revenue was $26.5 million, down 14% year-over-year, with recurring revenue at 65% of total and a 49% improvement in adjusted EBITDA to $2.5 million.

• Q2 2025 revenue reached $15.0 million, down 10% year-over-year but up 30.5% from Q1 2025.

• Adjusted net loss was $3.3 million for H1 2025, unchanged from H1 2024.

• A $60 million goodwill/asset impairment led to a reported net loss of $65 million.

• Cash and cash equivalents declined to $5.3 million due to deferred customer payments, mainly in Latin America.

Financial highlights

• H1 2025 recurring revenue totaled $17.3 million (+1% year-over-year), with subscriptions up 9% and maintenance down 7%.

• Q2 2025 recurring revenue was $8.7 million (+1% year-over-year); subscription revenue grew 8% to $4.7 million.

• Non-recurring revenue in Q2 2025 was $6.3 million, down 21% year-over-year but improved from Q1.

• Gross profit margin for H1 2025 was 66.6%, down from 69.7% in H1 2024.

• Free cash flow at end-June 2025 was $5 million, impacted by late payments in Latin America.

Outlook and guidance

• ARR from subscriptions is expected to achieve double-digit growth for the full year, with recurring revenue targeted at 70% of total revenue.

• Full-year EBITDA margin is now expected to be slightly above 2024's 4.9%, below the initial 10% target.

• Focus remains on expanding in media, telecoms, entertainment, and banking, with new strategic partnerships and verticals.

• Economic uncertainties and extended sales cycles are expected to persist, affecting business momentum.