AvidXchange Reports 5.2% Revenue Growth but $9.5 Million Net Loss in Q2 2025

AvidXchange Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 5.2% to $110.6 million compared to $105.1 million in the same period last year. For the first half of 2025, total revenues reached $218.5 million, up 3.7% from $210.7 million in the prior year. Despite the revenue growth, the company experienced a net loss of $9.5 million for the quarter, compared to a net income of $436,000 in Q2 2024. The loss per share for the quarter was $(0.05), reflecting a significant decline from the previous year.

The company's operating expenses rose to $92.0 million in Q2 2025, up from $76.8 million in Q2 2024, driven primarily by increased costs in sales and marketing, research and development, and general and administrative expenses. Notably, general and administrative expenses surged by 48% to $33.5 million, largely due to transaction costs associated with a proposed merger and increased employee costs. The company also reported a decrease in interest income, which fell to $4.5 million from $6.0 million year-over-year, attributed to lower cash balances and interest rates.

AvidXchange is in the process of a strategic merger with Arrow Borrower 2025, Inc., which was announced on May 6, 2025. The merger is expected to close in the fourth quarter of 2025, pending regulatory approvals and stockholder consent. The company incurred approximately $8.6 million in transaction-related expenses during the first half of 2025, which were included in general and administrative costs. If completed, the merger will result in AvidXchange becoming a privately held company, with its common stock delisted from Nasdaq.

Operationally, AvidXchange processed approximately 20.1 million transactions in Q2 2025, a 1.8% increase from the previous year, with total payment volume rising to $21.5 billion. The company reported a transaction yield of $5.50, up 3.2% year-over-year. As of June 30, 2025, AvidXchange had cash and cash equivalents of $335.8 million, alongside marketable securities valued at $71.5 million, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, AvidXchange anticipates continued revenue growth driven by increased transaction volumes and the expansion of its AvidPay Network. However, the company remains cautious about macroeconomic conditions that may impact customer spending and payment volumes. The management expects to leverage its strong cash position and operational efficiencies to navigate potential challenges while pursuing its growth strategy.