MeridianLink Reports $81.5 Million Revenue in Q1 2025, Net Loss Improves

MeridianLink, Inc. reported a net revenue of $81.5 million for the first quarter of 2025, reflecting a 5% increase from $77.8 million in the same period of 2024. The growth was primarily driven by a $6.2 million rise in revenue from Lending Software Solutions, which was partially offset by a $2.5 million decline in Data Verification Software Solutions due to a significant customer downsell and reduced mortgage-related volumes. The company's gross profit also increased to $53.8 million, up from $51.7 million, marking a 4% rise year-over-year.

Operating expenses for the quarter totaled $50.2 million, an increase of 4% from $48.4 million in the prior year. This rise was attributed to higher general and administrative costs, which increased by 10% to $27.7 million, driven by increased employee-related expenses and advisory fees related to remediation efforts for a previously identified material weakness in internal controls. Research and development expenses rose by 15% to $10.9 million, reflecting the company's commitment to enhancing its software solutions.

MeridianLink's net loss for the quarter was $4.7 million, a slight improvement from a loss of $5.3 million in the same quarter of 2024. The company reported a basic and diluted net loss per share of $(0.06), compared to $(0.07) in the previous year. The decrease in net loss was supported by a reduction in total other expenses, which fell by 12% to $7.6 million, primarily due to lower interest expenses.

In terms of operational metrics, MeridianLink's cash and cash equivalents increased significantly to $128.9 million as of March 31, 2025, up from $92.8 million at the end of 2024. The company also reported a substantial increase in deferred revenue, which rose to $39.7 million from $17.2 million, indicating strong customer demand and future revenue potential. The total employee headcount remained stable, reflecting the company's focus on maintaining operational efficiency amid ongoing investments in technology and customer support.

Looking ahead, MeridianLink remains optimistic about its growth trajectory, particularly in the digital lending and account opening markets. The company plans to leverage its recent stock repurchase program, authorized in February 2025 for up to $129.5 million, to enhance shareholder value. Management is focused on executing its strategic initiatives, including expanding its customer base and enhancing product offerings, while navigating the challenges posed by economic uncertainty and elevated interest rates.