VerticalScope (FORA) Q4 2025 earnings summary

Executive summary

• 2025 marked a year of structural change, with AI reshaping user discovery and engagement, prompting a strategic focus on direct connections, revenue diversification, AI-driven product growth, and disciplined investment leveraging strong liquidity.

• Achieved FY 2025 Adjusted EBITDA of $21.1M, meeting full-year guidance, with a 36% margin.

• Sequential improvements were seen in all key performance indicators in Q4, including MAU, ARPU, revenue, adjusted EBITDA, and free cash flow.

• Q4 Adjusted EBITDA margin expanded to 45%, up 300 bps sequentially, with $6.9M Adjusted EBITDA.

• The company maintained resilience despite industry-wide softness in programmatic advertising and continued to prioritize high-intent direct user growth.

Financial highlights

• Q4 revenue was $15.4 million, up 5% sequentially but down 23% year-over-year due to lower programmatic advertising.

• Full-year 2025 revenue was $58.1 million, down from $69.1 million in FY 2024.

• Adjusted EBITDA for 2025 was $21.1 million, with a 94% conversion to free cash flow; Q4 adjusted EBITDA margin reached 45%.

• Net loss for 2025 was $8 million, primarily due to $21.2 million in non-cash depreciation and amortization.

• Year-end unrestricted cash was $16.4 million, the highest since 2021, and total liquidity reached $72 million.

Outlook and guidance

• Expectation of continued MAU stability and sequential growth, with organic growth anticipated in the second half of 2026 as legacy traffic headwinds subside.

• Bookings up double-digits to start 2026, with continued expansion of direct offerings.

• AI-driven AudienceEngine product expected to scale, currently at a $1.4M EBITDA annualized run rate.

• Revenue growth to be driven by MAU stability, yield expansion, and new monetization channels, including AI-driven initiatives.

• Ongoing focus on operational efficiency and cost optimization through AI, aiming for further margin expansion.