Oblong Reports Q2 2025 Revenue Decline, Strategic Shift Towards Digital Assets

Oblong, Inc. reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $592,000 for the three months ended June 30, 2025, a decrease of 3% from $611,000 in the same period of 2024. For the first half of 2025, revenue was $1.214 million, down from $1.237 million year-over-year. The company experienced a net loss of $605,000 for the second quarter, a 38% improvement compared to a net loss of $983,000 in the prior year. For the first six months, the net loss was $1.277 million, compared to $2.119 million in the same period of 2024.

The decline in revenue was primarily attributed to decreased sales in both the Managed Services and Collaboration Products segments. Managed Services revenue fell to $497,000 from $508,000, while Collaboration Products revenue decreased from $103,000 to $93,000. The company noted that one customer accounted for 99% of its Managed Services revenue in the second quarter, highlighting a significant reliance on a single client. Despite the revenue decline, Oblong's gross profit margin improved significantly, with a consolidated gross profit of 38% in the second quarter of 2025, compared to 20% in the same quarter of 2024.

Oblong has initiated a strategic shift towards the digital assets market, particularly focusing on decentralized artificial intelligence (AI) and the acquisition of $TAO, the native cryptocurrency of Bittensor. This transition follows a private placement in June 2025, which raised approximately $7.5 million. The company is also exploring partnerships within the Bittensor ecosystem to enhance its technology offerings. As part of this strategy, Oblong has begun migrating its product focus away from its Mezzanine™ product line, which has seen declining sales due to changing market conditions.

Operationally, Oblong reported a significant reduction in operating expenses, which totaled $911,000 for the second quarter, down from $1.138 million in the previous year. This reduction was driven by decreased spending in research and development, sales and marketing, and general administrative costs, largely due to headcount reductions made in September 2024. The company’s cash and cash equivalents stood at $10.795 million as of June 30, 2025, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Oblong believes its existing cash reserves will be sufficient to fund operations for at least the next twelve months. However, the company anticipates that additional capital may be required to support growth initiatives, particularly in expanding its cryptocurrency treasury. The ability to raise this capital will depend on market conditions and the success of its ongoing strategic efforts.