MeridianLink, Inc. reported a net revenue of $84.6 million for the second quarter of 2025, marking an 8% increase from $78.7 million in the same period of 2024. For the first half of 2025, revenues reached $166.1 million, a 6% rise compared to $156.5 million in the prior year. The growth in revenue was primarily driven by a $7.1 million increase in Lending Software Solutions, attributed to cross-selling efforts to existing customers. However, this was partially offset by a $1.2 million decline in Data Verification Software Solutions due to a significant customer downsell and reduced mortgage-related volumes.
The company's gross profit for the second quarter was $57.1 million, up 13% from $50.5 million year-over-year, while the gross profit for the first half increased by 8% to $110.8 million. The improvement in gross profit was supported by a decrease in third-party costs and lower amortization expenses, despite higher employee-related costs. Operating expenses for the second quarter totaled $51.9 million, slightly higher than the $51.6 million reported in the same quarter of 2024. Notably, general and administrative expenses decreased by 2%, while research and development costs rose by 15%, reflecting the company's commitment to innovation.
MeridianLink's net loss for the second quarter was $3.0 million, a significant improvement from a loss of $9.7 million in the prior year. The loss per share for the quarter was $(0.04), compared to $(0.13) in the same period of 2024. The company attributed the reduced loss to improved operational efficiency and increased revenues. The total cash and cash equivalents at the end of the second quarter stood at $91.1 million, slightly down from $92.8 million at the end of 2024.
In terms of strategic developments, MeridianLink announced a new stock repurchase program in February 2025, authorizing the buyback of up to $129.5 million of its common stock. During the second quarter, the company repurchased approximately 3.1 million shares for $53.1 million. Additionally, the company is in the process of transitioning its leadership, with Laurence E. Katz set to take over as CEO in October 2025, following the resignation of Nicolaas Vlok.
Looking ahead, MeridianLink is focused on expanding its market presence and enhancing its product offerings. The company is optimistic about the potential for growth in the digital lending and account opening markets, particularly as financial institutions increasingly adopt online practices. However, it remains cautious about the impact of economic uncertainty, elevated inflation, and interest rates on its business operations. The company is also actively working to address a material weakness in its internal controls over financial reporting, which it aims to remediate through ongoing improvements and process enhancements.
About MeridianLink, Inc.
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