Oblong, Inc. Reports Slight Revenue Decline but Improved Net Loss in Q1 2025

Oblong, Inc. reported a slight decline in financial performance for the first quarter of 2025, with total revenue of $622,000, down 1% from $626,000 in the same period of 2024. The company experienced a net loss of $672,000, a significant improvement compared to a net loss of $1,136,000 in the prior year. The loss attributable to common stockholders was $684,000, translating to a basic and diluted net loss per share of $(0.59), compared to $(2.02) in the previous year. The improvement in net loss was primarily driven by a reduction in operating expenses and an increase in gross profit.

In terms of segment performance, revenue from the Managed Services segment decreased by 3% to $508,000, while revenue from Collaboration Products increased by 10% to $114,000. The decline in Managed Services revenue was attributed to customer attrition and competitive pricing pressures, with one customer accounting for 99% of the segment's revenue. Conversely, the increase in Collaboration Products revenue was linked to higher sales of the Mezzanine™ product offerings. The overall cost of revenue decreased significantly, leading to a gross profit margin of 40% in the first quarter of 2025, compared to a negative gross profit margin in the same quarter of 2024.

Oblong's operating expenses for the first quarter of 2025 totaled $940,000, down 20% from $1,181,000 in the prior year. This reduction was largely due to decreased spending in research and development, sales and marketing, and general administrative expenses, reflecting the company's ongoing efforts to manage costs in response to market conditions. The company reported a gross profit of $249,000, a notable increase from a gross loss of $3,000 in the previous year, indicating improved operational efficiency.

As of March 31, 2025, Oblong had cash and cash equivalents of $4,316,000 and working capital of $3,345,000. The company utilized $680,000 in operating activities during the quarter but generated $31,000 from financing activities, primarily from the exercise of common stock warrants. Oblong believes its current cash reserves will be sufficient to fund operations through the fourth quarter of 2026, although it anticipates needing additional capital for future growth initiatives and strategic alternatives.

Looking ahead, Oblong is exploring various strategic options, including potential mergers, acquisitions, or partnerships to enhance shareholder value. The company is particularly focused on identifying early-stage technology firms that align with its product offerings and market goals. However, management cautioned that there are no guarantees regarding the outcomes of these strategic reviews, emphasizing the complexity and uncertainty involved in such processes.