OMNIQ Corp. Reports 8.7% Revenue Growth in Q1 2025, Faces Operational Losses

OMNIQ Corp. reported its financial results for the first quarter of 2025, revealing a revenue increase of approximately 8.7% to $19.9 million, compared to $18.3 million in the same period of 2024. The company’s gross profit for the quarter was $5.1 million, slightly up from $5.0 million year-over-year. Despite the revenue growth, OMNIQ experienced a loss from operations of $690,000, an improvement from the $1.3 million loss reported in the first quarter of 2024. The net loss for the quarter was $2.1 million, consistent with the previous year’s loss of $2.1 million, resulting in a basic loss per share of $0.20 for both periods.

The company’s financial position showed a working capital deficit of $55 million as of March 31, 2025, compared to a deficit of $54.4 million at the end of 2024. Cash and cash equivalents increased to $2.7 million from $2.3 million, while total assets decreased to $35.1 million from $43.6 million. The accumulated deficit rose to $126 million, reflecting ongoing operational losses. OMNIQ's stockholders' equity also declined, with a deficit of $45.5 million reported for the first quarter of 2025, compared to $43.8 million at the end of the previous year.

Strategically, OMNIQ has focused on enhancing its product offerings and customer engagement. The company has been actively pursuing cost-saving measures, which contributed to a 7.7% reduction in total operating expenses, down to $5.8 million from $6.3 million in the prior year. Research and development expenses increased slightly to $507,000, while selling, general, and administrative expenses decreased by 9% to $5.1 million. The company continues to engage with a diverse customer base, including government agencies and Fortune 500 companies, and has expanded its market presence in over 40 countries.

Operationally, OMNIQ's customer engagement appears to be improving, as evidenced by the increase in revenue attributed to accelerated project timelines. The company has also reported a decrease in interest expenses, which fell to $462,000 from $917,000, primarily due to a reduced line of credit. However, the company faces challenges, including a significant reliance on a single vendor for a substantial portion of its purchases and ongoing litigation risks related to unpaid commissions and lease agreements.

Looking ahead, OMNIQ management is focused on mitigating its working capital deficit and enhancing operational efficiency. The company is evaluating its cost structure and aims to increase sales with key customers while prioritizing its most profitable product lines. Despite the challenges, OMNIQ remains optimistic about its growth potential in the global markets it serves, particularly in sectors experiencing double-digit growth.