CreditRiskMonitor Reports Modest Revenue Growth and Increased Profitability in Q1 2025

CreditRiskMonitor.com, Inc. reported its financial results for the first quarter of 2025, revealing a modest increase in operating revenues to $4.87 million, up from $4.81 million in the same period last year. The company achieved a net income of $159,062, compared to $127,407 in the first quarter of 2024, marking a 25% increase in profitability. This growth in revenue was primarily driven by an uptick in sales of its Software-as-a-Service (SaaS) subscription products, which benefited from both new customer acquisitions and price increases for existing subscriptions.

In terms of expenses, total operating costs rose slightly to $4.85 million from $4.84 million year-over-year. Data and product costs increased by 4% to $2.28 million, attributed to higher employee expenses and increased costs from third-party content providers. Conversely, selling, general, and administrative expenses decreased by 3% to $2.48 million, reflecting lower customer acquisition costs and a reduction in professional fees compared to the previous year. The company’s operating income improved to $25,367, a turnaround from a loss of $35,841 in the prior year.

CreditRiskMonitor's balance sheet as of March 31, 2025, showed total assets of $24.44 million, a decrease from $24.91 million at the end of 2024. Current liabilities also decreased to $12.34 million from $13.14 million, with unexpired subscription revenue remaining a significant component at approximately $11 million. The company’s cash and cash equivalents stood at $5.84 million, down from $6.67 million, primarily due to cash used in operating activities. The company reported a working capital deficit of $63,000, a decline from a surplus of $565,000 at the end of the previous fiscal year.

Looking ahead, CreditRiskMonitor plans to continue enhancing its product offerings and expanding its market presence. The company aims to invest in its sales force and customer service staff while also focusing on product development to sustain revenue growth. However, management acknowledged potential challenges, including economic uncertainties that could impact subscriber spending and overall business conditions. The company remains optimistic about its ability to meet cash requirements through existing resources and operational cash flow, despite the possibility of needing additional capital for future acquisitions or product licensing.

Overall, CreditRiskMonitor's first-quarter results reflect a stable financial performance with a focus on strategic growth initiatives, although the company remains cautious about external economic factors that could influence its operations in the coming months.