AvidXchange Reports $107.9 Million Revenue in Q1 2025, Faces Net Loss of $7.3 Million

AvidXchange Holdings, Inc. reported a revenue of $107.9 million for the first quarter of 2025, reflecting a 2.2% increase from $105.6 million in the same period of the previous year. The company's net loss for the quarter was $7.3 million, or $0.04 per share, compared to a net loss of $1.0 million, or $0.00 per share, in the first quarter of 2024. The increase in revenue was primarily driven by a rise in software revenue, which grew by 4.2% to $30.9 million, and a slight increase in payment revenue, which rose by 1.0% to $75.9 million. However, the company experienced a decline in interest income from funds held for customers, which decreased to $11.0 million from $13.1 million year-over-year.

In terms of operational metrics, AvidXchange processed approximately 19.7 million transactions during the quarter, a 1.9% increase from 19.3 million in the prior year. The total payment volume also rose by 3.7% to $20.6 billion. The company’s total assets decreased to $1.99 billion as of March 31, 2025, down from $2.09 billion at the end of 2024, largely due to a reduction in cash and cash equivalents and restricted funds held for customers. The company’s cash and cash equivalents stood at $307.3 million, down from $355.6 million at the end of the previous fiscal year.

AvidXchange has been actively pursuing strategic initiatives, including a proposed merger with Arrow Borrower 2025, Inc., which was announced on May 6, 2025. This merger, expected to close in the fourth quarter of 2025, would result in AvidXchange becoming a privately held company, with its common stock delisted from Nasdaq. The company incurred approximately $2.1 million in transaction-related expenses during the first quarter in connection with the merger. The merger is subject to stockholder approval and various regulatory conditions, including antitrust and money transmitter license approvals.

The company’s workforce has also seen changes, with an increase in employee costs contributing to a rise in general and administrative expenses, which totaled $28.9 million for the quarter, up from $24.3 million in the prior year. AvidXchange's total stockholders' equity increased to $679.2 million as of March 31, 2025, compared to $671.8 million at the end of 2024. The company continues to focus on enhancing its product offerings and expanding its market presence, particularly in the accounts payable automation sector for middle-market businesses.

Looking ahead, AvidXchange anticipates continued revenue growth driven by an increase in transaction volumes and the expansion of its customer base. However, the company acknowledges potential challenges posed by macroeconomic conditions, including inflation and interest rate fluctuations, which could impact customer spending and payment volumes. The management remains optimistic about the long-term prospects of the business, particularly in light of the strategic merger and ongoing investments in technology and customer service.