PAID, Inc. Reports 24% Revenue Growth in Q3 2025, Net Loss of $513,965 for Nine Months

PAID, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a notable increase in revenues and a shift in profitability compared to the previous fiscal period. For the three months ended September 30, 2025, the company generated $5.51 million in net revenues, a 24% increase from $4.45 million in the same period of 2024. The growth was primarily driven by the shipping coordination and label generation services, which saw a 24% rise in revenues to $5.51 million, attributed to a shift in shipping volume from Canada Post to alternative carriers amid ongoing contract negotiations.

In contrast, the client services segment, which includes brewery management software, experienced a complete revenue drop to zero, down from $2,495 in the prior year, following the retirement of the BeerRun Software. The eCommerce services segment also faced a decline, with revenues falling 73% to $3,391, largely due to the loss of a significant client. Despite the overall revenue growth, the gross profit for the quarter increased to $1.28 million, although the gross margin slightly decreased to 23% from 24% in the previous year.

For the nine months ended September 30, 2025, PAID, Inc. reported total revenues of $15.31 million, a 16% increase from $13.21 million in the same period of 2024. The shipping coordination and label generation services again led this growth, with revenues rising 16% to $15.29 million. However, client services revenues dropped 74% to $3,863, and eCommerce services revenues decreased by 39% to $22,911. The company recorded a net loss of $513,965 for the nine-month period, a significant decline from the net income of $936,335 reported in the same timeframe last year.

Operationally, PAID, Inc. has made strategic adjustments, including the discontinuation of certain product lines and a focus on enhancing its shipping services. The company has also increased its marketing efforts and added new carriers to its platform to attract small and medium-sized businesses. As of September 30, 2025, the company reported cash and cash equivalents of $1.15 million, down from $1.28 million at the end of 2024, and a working deficit of $434,040.

Looking ahead, management remains optimistic about the company's ability to navigate its current challenges and achieve growth. They believe that the strategic initiatives in place, including potential new product launches and cost management measures, will help improve financial performance. However, the company acknowledges the inherent risks and uncertainties in achieving these goals, particularly in light of market conditions and competition.