Moatable Reports 26.1% Revenue Growth and Net Income Turnaround in Q2 2025

Moatable, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved total revenues of $19.3 million for the three months ended June 30, 2025, marking a 26.1% increase from $15.3 million in the same period of the previous year. For the six months ended June 30, 2025, revenues rose to $37.3 million, up from $29.3 million in 2024. The company also reported a net income of $0.4 million for the second quarter of 2025, a turnaround from a net loss of $0.5 million in the same quarter of 2024. This positive shift was attributed to improved operational efficiencies and increased revenue from its Software as a Service (SaaS) offerings.

In terms of operational metrics, Moatable's SaaS revenue, which constitutes the majority of its income, increased significantly. The company reported a 21.7% rise in subscription services revenue, driven by a 30% increase in paying subscriptions for its Trucker Path platform, which reached 144,800 users. However, the Lofty platform saw a slight decline in paying subscriptions, decreasing to 3,900 from 4,100. The overall customer engagement metrics indicate a growing user base, particularly for Trucker Path, which is crucial for sustaining revenue growth.

Strategically, Moatable made a notable acquisition on May 1, 2025, purchasing Truckers Best Insurance LLC for a total consideration of $2.8 million, which includes contingent earn-out considerations based on performance metrics. This acquisition is expected to enhance Moatable's service offerings in the insurance brokerage sector, further diversifying its revenue streams. Additionally, the company has been focusing on expanding its research and development capabilities, with a workforce of approximately 380 engineers and developers, which represents about 58% of its total employee count.

Despite the positive financial results, Moatable's operational expenses also increased, rising from $12.6 million in Q2 2024 to $13.8 million in Q2 2025. This increase was primarily due to higher research and development costs and general administrative expenses. The company reported a gross margin decrease from 77.1% to 74.1%, attributed to rising costs associated with service features in its SaaS platforms. The company’s cash position as of June 30, 2025, showed $17.1 million in cash and cash equivalents, down from $26.6 million at the end of the previous fiscal year, indicating a need for careful cash management moving forward.

Looking ahead, Moatable's management expressed optimism about future growth, driven by the expansion of its SaaS offerings and the recent acquisition. However, they acknowledged the need to address material weaknesses in internal controls over financial reporting, which could impact operational efficiency. The company plans to implement measures to enhance its internal control environment and ensure compliance with financial reporting standards. Overall, Moatable appears well-positioned for continued growth, contingent on effective execution of its strategic initiatives and operational improvements.