Earnings release
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TM NEWS RELEASE Pivotree Announces Second Quarter 2025 Results 2025-08-13 Strong gross margins and operational discipline delivers $1.7M of Adjusted EBITDA in Q2 2025, marking a third consecutive quarter of positive Adjusted EBITDA and second quarter of positive Net Income TORONTO, ONTARIO / ACCESS Newswire / August 13, 2025 / Pivotree Inc. (TSXV:PVT) ("Pivotree" or the "Company"), a leader in frictionless commerce solutions, today reported nancial results for the three and six month period ended June 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated. "E ective operating controls and cost containment has Pivotree on a healthy and consistent EBITDA track," said Bill Di Nardo, CEO of Pivotree. "We achieved our third consecutive quarter of positive adjusted EBITDA and second quarter of positive net income, demonstrating sustained operating discipline and a signi cant step up in PS gross margins to 42%, their highest in over three years." Pivotree also announced today that it has released a letter to shareholders from Bill Di Nardo, CEO. The letter can be accessed from the Company's website at investor.pivotree.com and led on SEDAR at www.sedar.com. Second Quarter 2025 Financial Highlights (All gures are in Canadian dollars and all comparisons are relative to the three-month period ended June 30, 2024 unless otherwise stated): Net income of $2.5 million compared to a net loss of $4.4 million for the prior year period, primarily due to reduced operating expenses as a result of restructure e orts, as well as the gain on sale of intangible assets. Adjusted EBITDA1 of $1.7 million compared to an adjusted EBITDA1 of $0.3 million for the prior year period. The continued strength in EBITDA is the result of the improved gross margins and operational expense restructuring that took place during 2024. 1
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The business realized sequential quarter growth within Managed and IP Solutions (MIPS) which was o set by unfavourable foreign exchange movement and declines in Legacy Managed Services (LMS) as described below, leading to total revenue of $17.3 million and a 14.7% decline from Q2 2024 a. Managed and IP Solutions (MIPS) Revenue declined 7.3% to $3.7M in Q2 2025, from $4.0M in Q2 2024, related to a peak in SKU transaction volume in the prior year and returning to more normal levels. b. Legacy Managed Services (LMS) Revenue declined 41.3% to $3.0M in Q2 2025, from $5.2M in Q2 2024, related to churn and melt of Legacy Oracle customers. c. Professional Services Revenue of $10.5 million, a decrease of 5.0%. These three month ended results contain new customer projects, which helped partially o set completed projects from the prior year. Gross margin improved to 46.2% of total revenue yielding gross pro t of $8.0 million, compared to $9.0 million or 44.2% of revenue for the prior year period. Professional service margins were particularly strong, contributing to the overall gross margin improvement. Second Quarter 2025 Business Highlights Commerce Total Contract Value (TCV) bookings were primarily driven by the extension of existing Professional Services engagements, including signi cant contracts for Micro Services and Shopify projects. Additionally, Commerce successfully secured several Managed Services support contract extensions during the quarter. Demand in Data remained strong for SKU Build, as well as taxonomy, and schema engagements. The Data team secured four new logos, with potential for future expanded bookings. These new wins include a SKU Build proof of concept, a Data Cleansing engagement, a Data Assessment, and a Control Tower Beta. The Data team also extended existing Professional Service engagements and renewed Managed Hosting, MAS, and FAS contracts. During Q2, the Supply Chain business divested its Warehouse Management operations, allowing for a more focused approach on the Order Management practice. TCV bookings in Q2 bene ted from extensions and renewals for both Sterling OMS and Fluent platforms. Second Quarter 2025 Results Selected Financial Measures Three months ended June 30,Six months ended June 30, 2
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2025 2024$ Change% Change2025 2024$ Change%Change $ $ $ %$ $ $ % MIPS 3,737,3824,032,745(295,363) -7.3% 7,403,0998,016,988(613,889) -7.7% LMS 3,037,1655,173,122(2,135,957) -41.3% 7,356,11110,576,997(3,220,886) -30.5% Total MIPS & LMS6,774,5479,205,867(2,431,320) -26.4% 14,759,21018,593,985(3,834,775) -20.6% Professional Services10,497,82711,052,721(554,894) -5.0% 21,677,17122,597,681(920,510) -4.1% Total Revenue17,272,37420,258,588(2,986,214) -14.7% 36,436,38141,191,666(4,755,285) -11.5% Results of Operations The following table outlines our consolidated statements of income (loss) and comprehensive income (loss) for the three months ended June 30, 2025 and 2024. Three months ended June 30,Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Revenue 17,272,37420,258,58836,436,38141,191,666 Cost of revenue 9,299,82811,303,00320,014,70522,678,685 Gross pro t 7,972,5468,955,58516,421,67618,512,981 Operating expenses General and administrative 1,621,4792,758,4443,799,8395,684,846 Sales and marketing 1,982,0072,475,0183,884,9425,314,399 Research and development 332,795472,827825,042886,318 3
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IT and Operations 1,678,1853,080,3433,465,7446,432,521 Loss (gain) on foreign exchange613,665(121,909) 732,333(310,853) Amortization and Depreciation1,265,3022,695,1142,588,6084,184,892 Stock based compensation 204,014239,523429,891474,051 Restructuring and Other - 1,512,648 - 2,072,963 Interest 17,336 27,703 54,107 78,905 7,714,78313,139,71115,780,50624,818,042 Income (loss) before other items257,763(4,184,126) 641,170(6,305,061) Interest income 11,177 36,933 16,104 115,464 Gain on sale of intangible assets2,373,197 - 2,373,197 - Operating income (loss) 2,642,137(4,147,193) 3,030,471(6,189,597) Current taxes (101,003) (254,739) (257,350) (399,461) Net income (loss) 2,541,134(4,401,932) 2,773,121(6,589,058) Other comprehensive income (loss) Foreign translation adjustment(951,104) 161,979(1,339,974) 602,882 Comprehensive income (loss)1,590,030(4,239,953) 1,433,147(5,986,176) Loss per share - basic 0.10 (0.17) 0.11 (0.25) Weighted average number of common shares outstanding - basic26,380,13526,309,81626,394,24726,337,194 Cash Flows 4
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Three months ended June 30,Six months ended June 30, 2025 2024 2025 2024 $ $ $ $ Cash and cash equivalents, beginning of period 6,511,1937,879,1613,877,6878,619,161 Net cash provided by (used in): Operating activities 724,448(1,095,676) 3,765,180(2,362,429) Investing activities 1,640,480(374,682) 1,359,369559,855 Financing activities (209,357) (184,879) (325,572) (611,463) E ect of foreign exchange on cash and cash equivalents (87,420) 12,161 (97,320) 30,961 Net increase (decrease) in cash and cash equivalents 2,068,151(1,643,076) 4,701,657(2,383,076) Cash and cash equivalents, end of period 8,579,3446,236,0858,579,3446,236,085 Conference Call Management will host a live Zoom Video Webinar on Wednesday, August 13, 2025 at 8:30 am ET to discuss these second quarter 2025 results. The webinar can be accessed through the following registration link: https://pivotree.zoom.us/webinar/register/WN_4d1GaPdSRf6SJO9mh64edQ. A replay will be available approximately two hours after the conclusion of the live event and posted on https://investor.pivotree.com/. Non-IFRS Measures and Reconciliation of Non-IFRS Measures This press release makes reference to certain non-IFRS measures including key performance indicators used by management and typically used by our competitors in the technology industry. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our nancial information reported under IFRS. These non-IFRS measures and technology metrics are used to provide investors with supplemental measures of our operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including technology industry metrics, in the evaluation of companies in the technology industry. Management also uses non-IFRS measures and technology industry metrics in order to facilitate operating performance comparisons 5
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from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. The non-IFRS measures and technology industry metrics referred to in this press release include "Total Contract Value Booking", "EBITDA" and "Adjusted EBITDA". Additional details for these non-IFRS and other nancial measures can be found under the heading "Key Performance Indicators" in our MD&A for the quarter ended June 30, 2025, led on SEDAR+ at www.sedarplus.com, which includes explanations of the composition and usefulness of these non-IFRS nancial measures and is incorporated by reference in this press release. Forward-looking Information This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward- looking information") within the meaning of applicable securities laws. Forward-looking information may relate to the Company's future nancial outlook and anticipated events or results and may include information regarding the Company's nancial position, business strategy, growth strategies, addressable markets, budgets, operations, nancial results, taxes, dividend policy, plans and objectives. Particularly, information regarding the Company's expectations of future results, performance, achievements, prospects or opportunities or the markets in which the Company operates is forward-looking information. In some cases, forward-looking information can be identi ed by the use of forward-looking terminology such as "plans", "targets", "expects", "budgets", "scheduled", "estimates", "outlook", "forecasts", "projects", "prospects", "strategy", "intends", "anticipates", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" occur. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. The forward-looking information contained herein includes, but is not limited to, proposed expansion of the Company's market position, potential acquisitions, the conversion of sales pipelines to con rmed bookings, and the achievement and maintenance of pro tability metrics, such as Gross Pro t, Gross Margin, EBITDA, Adjusted EBITDA, Net Income (loss), and Comprehensive Income (loss). Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this letter, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially di erent from those expressed or implied by such forward-looking information, including but not limited to: risks and uncertainties associated with market conditions; our ability to execute on our growth strategies; our ability to create and protect unique intellectual property and enter new markets; the impact of changing conditions in the global e-commerce market, including increasing competition and changes in approach in the e-commerce software as a service solution or infrastructure market; our inability to achieve con rmed bookings from our sales pipeline and the risk that customers in our sales pipeline move their business to one of our competitors; changes in the expectations, nancial condition and demand of our target markets; changes or increases in the di culty of avoiding cyber or data security threats, or compliance with data 6
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security regulators that may impact our business; our ability to continue to execute accretive acquisitions; our ability to maintain and build our reputation with clients; uctuations in currency exchange rates and volatility in nancial markets; developments and changes in applicable laws and regulations; and such other factors discussed in greater detail under the "Risk Factors" section of the prospectus of the Company dated October 23, 2020 (the "Prospectus"). If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying forward- looking information prove incorrect, actual results or future events might vary materially from those anticipated in forward-looking information. The opinions, estimates or assumptions referred to above and the risk factors described in the "Risk Factors" section of the prospectus of the Company dated October 23, 2020 should be considered carefully. Although the Company has attempted to identify important risk factors that could cause actual results to di er materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes is not material that could also cause actual results or future events to di er materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could di er materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward- looking information, which speaks only as of the date made. Forward-looking information contained in this press release represents the Company's expectations as of the date of this press release (or as of the date they are otherwise stated to be made), and are subject to change after such date. The Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. About Pivotree Pivotree, a leader in frictionless commerce, strategizes, designs, builds, and manages digital Commerce, Data Management, and Supply Chain solutions for over 150 major retailers and branded manufacturers globally. With a portfolio of digital products as well as managed and professional services, Pivotree provides businesses of all sizes with true end-to-end solutions. Headquartered in Toronto, Canada, with o ces and customers in the Americas, EMEA, and APAC, Pivotree is widely recognized for its partnership with top brands across industries. For more information, visit www.pivotree.com or follow us on LinkedIn. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is de ned in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information, please contact: Mo Ashoor, Chief Financial O cer 7
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investor@pivotree.com 613-714-4702 SOURCE: Pivotree View the original press release on ACCESS Newswire 8