PCS Edventures! Reports 52.7% Revenue Growth in Latest Quarter, Net Loss Narrows

PCS Edventures!, Inc. reported its financial results for the quarter and nine months ended December 31, 2024, revealing a revenue increase of 52.7% to $701,147 compared to $459,087 in the same quarter of the previous year. For the nine-month period, revenue decreased by 10.3% to $6,128,409 from $6,831,694 year-over-year. The company attributed the quarterly revenue growth to the recognition of deferred revenue and improved fulfillment efficiency following its relocation to a new warehouse facility. However, the decline in nine-month revenue was primarily due to the absence of significant orders from two large customers, which had contributed $1,265,916 and $823,143 in the previous year.

The company's gross profit for the quarter was $352,487, up from $148,430 in the prior year, while the gross profit margin improved significantly from 32.3% to 50.3%. For the nine-month period, gross profit was $3,668,662, down from $4,328,142, reflecting a decrease in revenue despite a slight improvement in the cost of sales as a percentage of revenue. Operating expenses increased to $811,231 for the quarter, compared to $585,409 in the previous year, driven by higher salaries and general administrative costs associated with the new facility. The net loss for the quarter narrowed to $222,889 from a loss of $414,138 in the prior year, while the nine-month net income decreased to $1,065,615 from $2,257,830.

Operationally, PCS Edventures! reported a total of 24 employees as of December 31, 2024, up from 21 a year earlier, reflecting the company's ongoing investment in human resources to support growth. The company also noted a significant decrease in accounts receivable, which fell by $1,512,101, contributing to a cash flow from operations of $2,727,089, compared to $1,644,990 in the same period last year. The total current assets increased to $6,074,390, while current liabilities decreased to $310,160, resulting in a current ratio of 19.58, indicating strong liquidity.

Looking ahead, PCS Edventures! plans to continue developing its STEM education products and expanding its customer base, particularly in out-of-school programs. The company remains focused on enhancing its product offerings and operational efficiencies to drive future growth. Management expressed confidence in sustaining operations over the next twelve months, supported by a strong cash position of $3.6 million and a large inventory balance. However, the company acknowledged potential risks, including competitive pressures and economic conditions that could impact demand for its products.