VIQ Solutions (VQS) Q2 2025 earnings summary

Executive summary

• Achieved fifth consecutive quarter of positive adjusted EBITDA, reaching $1 million in Q2 2025, up 24% year over year, with margin expansion and the largest SaaS deployment to date supporting a shift to a higher-margin, subscription-based model.

• Gross margin expanded to 48% in Q2 2025, up from 45.5% in Q2 2024, and nearly 50% for H1 2025, up from 44.9% year over year, driven by automation and productivity gains.

• Signed the largest SaaS contract to date, deploying NetScribe across nine judicial districts and 22 counties in the U.S. Midwest, accelerating the shift to subscription revenue.

• AI-driven workflow automation and $1.9 million in new bookings in H1 2025 underpin long-term growth and improved free cash flow prospects.

• Operational efficiencies and cost optimization initiatives are driving sustained margin improvements and productivity.

Financial highlights

• Q2 2025 revenue was $10.4 million, a 10% year-over-year decline due to decreased volumes and negative FX impact; H1 2025 revenue was $20 million, down 7% year-over-year.

• Q2 2025 adjusted EBITDA was $1 million, up from $800,000 in Q2 2024; H1 2025 adjusted EBITDA was $1.8 million, up from $700,000.

• Net loss for Q2 2025 was $0.9 million; H1 2025 net loss was $2.8 million, impacted by $2 million in non-cash expenses.

• Q2 2025 adjusted operating loss was $0.8 million, compared to $0.6 million year-over-year; H1 2025 adjusted operating loss improved to $1.5 million from $2.4 million year-over-year.

• Ended Q2 2025 with $1.1 million in cash and $0.2 million positive cash flow from operations.

Outlook and guidance

• Focused on expanding gross margins to achieve sustainable operations and free cash flow in fiscal 2025 and beyond, with continued investment in automation and AI-driven SaaS solutions.

• Management expects continued margin improvement and financial flexibility to reinvest in growth, supported by automation and SaaS transition.

• Material uncertainty exists regarding the ability to continue as a going concern due to recurring losses, negative working capital, and covenant breaches.

• Management is pursuing cost-saving measures, refinancing, and additional financing to improve liquidity.

• Forward-looking statements highlight focus on cost optimization, scalability, and long-term value creation, but caution on risks and uncertainties.