MetAlert Reports $40.8 Million Revenue in Q1 2025, Faces 16% Decline and Increased Net Loss

MetAlert, Inc. reported a total revenue of $40.8 million for the first quarter of 2025, a decrease of 16% compared to $48.3 million in the same period of 2024. The decline was attributed to stalled manufacturing and government sales due to changes in administration cuts and tariff fluctuations affecting production. Product sales fell to $14.4 million from $24.9 million, while service income increased to $26.4 million from $23.4 million, indicating a shift towards more recurring revenue streams. The company's gross margin also decreased significantly, dropping to 45% from 89% year-over-year, primarily due to a 336% increase in the cost of goods sold, which reached $22.4 million.

Operating expenses for the quarter were reduced to $157.9 million from $219.2 million, reflecting cost-cutting measures including salary deferrals by senior management. Notably, professional fees decreased by 61% to $22 million, and general and administrative expenses fell by 25% to $54 million. Despite these reductions, the company reported a net loss of $235.4 million, a slight improvement from a net loss of $251.1 million in the prior year. The loss per share remained consistent at $(0.01) for both periods.

In terms of operational metrics, MetAlert's customer base comprised approximately 69% B2B and 31% B2C, a shift from the previous year when B2B accounted for 56% of sales. The company noted a 27% increase in international subscriptions, suggesting a positive trend in its global distribution efforts. However, the overall working capital deficit increased to $4.5 million from $4.3 million at the end of 2024, with cash and cash equivalents decreasing to $40.6 million from $53.5 million.

Strategically, MetAlert has made significant organizational changes, including the acquisition of Level 2 Security, LLC, which has been integrated into a new subsidiary, Level 2 Security Products, Inc. This acquisition aims to enhance the company's offerings in asset monitoring and recovery. The company also launched the Gen 2 version of its GunAlert product, targeting government agencies, although sales have been impacted by external factors.

Looking ahead, MetAlert anticipates that as tariff and budgetary issues stabilize, its business will begin to ramp up. The company is focused on increasing product sales and expanding its market presence, particularly in international markets. However, it acknowledges the need for additional capital to support ongoing operations and product development, raising concerns about its ability to continue as a going concern without securing further funding.