Quorum Information Technologies (TSX-V: QIS) Q2 2025 Earnings Call | 5/30/2025
AI Summary
Quorum Information Technologies, a provider of software solutions to over 1,400 North American vehicle dealerships, reported Q1 2025 results. Total revenue grew 1% to $10.2 million, with SaaS revenue up 1% to $7.2 million and BDC revenue up 4% to $2.6 million, driven by price increases, cross-selling, and new customers. Gross margin fell to 48% from 51%, impacted by higher third-party costs and BDC staffing investments. Adjusted EBITDA dropped 29% to $1.5 million (15% margin) due to expensing more software development costs and increased R&D and G&A expenses. Cash EBITDA fell 27% to $1 million (10% margin). Quorum reduced its BDC capital loan to $3.7 million, with a debt-to-cash EBITDA ratio of 1x, down from 2.5x last year. The company implemented $1.3 million in annual cost savings, effective Q3 2025, and is exploring AI-driven BDC efficiency improvements. Despite tariff uncertainties, Quorum’s 13-solution suite positions it to help dealerships boost sales and margins, with a $54 million SaaS cross-selling opportunity within its existing customer base. The company is evaluating capital allocation options, including organic growth, acquisitions, share repurchasing, or dividends, while maintaining a strong balance sheet.
About this video
Quorum Information Technologies Inc. (TSX-V: QIS), a leading North American SaaS provider for automotive dealerships and OEMs, reported steady results for Q2 2025 on May 30, 2025. Total revenue increased 1% year-over-year to $10.2 million, with SaaS revenue up 1% to $7.2 million and BDC revenue rising 4% to $2.6 million. Recurring revenue grew to $9.84 million, highlighting the stability of Quorum’s business model. Despite these gains, gross margin declined to 48% from 51% last year, and adjusted EBITDA fell 29% to $1.5 million, reflecting inflationary pressures and increased investment in staffing and technology. Quorum is proactively implementing $1.3 million in annual cost savings—including gross margin improvement plans, office lease reductions, and third-party service provider efficiencies—that are expected to be fully realized by Q3 2025. The company’s balance sheet continues to strengthen, with debt-to-cash EBITDA improving to 1x, providing flexibility for future strategic initiatives. Leadership remains focused on cross-selling its integrated suite of 13 essential software solutions, driving long-term value for both dealerships and shareholders. About Inside Ticker: For more expert analysis and real-time updates on Quorum Information Technologies (TSX-V: QIS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Quorum #QIS #EarningsCall #Q22025 #SaaS #AutomotiveTech #Software #StockMarket #Investing #InsideTicker
Video Stats
More from this category
Dell Technologies Inc. (NYSE: DELL) Q1 2026 Earnings Call | AI Server Demand | 5/30/2025
Inside Ticker
Mama's Creations, Inc. (NASDAQ: MAMA) Q1 2026 Earnings Call | 6/3/2025
Inside Ticker
Sportsman’s Warehouse Holdings, Inc. (NASDAQ: SPWH) Q1 2025 Earnings Call | 6/3/2025
Inside Ticker
Hewlett Packard Enterprise Company (NYSE: HPE) Q2 2025 Earnings Call | 6/3/2025
Inside Ticker
Yext, Inc. (NYSE: YEXT) Q1 2026 Earnings Call | 6/3/2025
Inside Ticker
Elastic N.V. (NYSE: ESTC) Q4 2025 Earnings Call | Cloud Revenue Surges & AI Platform | 5/30/2025
Inside Ticker
CrowdStrike Holdings, Inc. (NASDAQ: CRWD) Q1 2026 Earnings Call | 6/3/2025
Inside Ticker
Zscaler (ZS) Q3 2025 Earnings Call | Revenue Beats & AI Security Highlights | May 2025
Inside Ticker
BARK, Inc. (NYSE: BARK) Q4 2025 Earnings Call | 6/4/2025
Inside Ticker
lululemon athletica inc. (NASDAQ: LULU) Q1 2025 Earnings Call | 6/5/2025
Inside Ticker
Sprinklr, Inc. (NYSE: CXM) Q1 2026 Earnings Call | 6/4/2025
Inside Ticker
Braze, Inc. (NASDAQ: BRZE) Q1 2026 Earnings Call | 6/5/2025
Inside Ticker