QuoteMedia Reports 8% Revenue Increase to $20.3 Million, Net Loss Widens to $2.3 Million

QuoteMedia Inc. reported an 8% increase in total licensing revenue for the fiscal year ending December 31, 2025, amounting to $20.3 million, compared to $18.7 million in 2024. The company's Portfolio Management Systems revenue rose by 11% to $10.1 million, driven primarily by a 14% increase in Corporate Quotestream revenue, which reflects a growing customer base and higher average revenue per customer. However, Individual Quotestream revenue remained flat at $1.8 million. The Interactive Content and Data APIs segment also saw a 5% increase in revenue, totaling $10.2 million, attributed to higher average revenue per client.

In terms of profitability, QuoteMedia reported a net loss of $2.3 million for 2025, widening from a loss of $1.3 million in the previous year. The increase in losses was influenced by a 14% rise in total operating expenses, which reached $11.6 million, largely due to a significant 58% increase in software development costs. This rise in development expenses was linked to a shift in the capitalization of development salaries, with only 4% capitalized in 2025 compared to 26% in 2024. The company's gross profit increased by 7% to $9.5 million, maintaining a gross margin of 47%.

Operationally, QuoteMedia's employee count stood at 115, with a majority based in Canada. The company has been focusing on enhancing its product offerings, particularly through the development of its Quotestream suite and the QMod web delivery system. The company is also exploring the integration of artificial intelligence tools to improve product performance and client integration. Despite these advancements, the company faces challenges, including a working capital deficit of $4.4 million and an accumulated deficit of $23.5 million, raising concerns about its ability to continue as a going concern without additional financing.

Looking ahead, QuoteMedia anticipates revenue growth for fiscal 2026, supported by contracts already in place. The company plans to expand its product lines, improve infrastructure, and enhance its data offerings, including international exchange data and new market information products. However, the company acknowledges potential risks, including market uncertainty and competition, which could impact its ability to achieve its growth objectives. The management has indicated that additional capital may be required to execute its operational plans, although there is no assurance that such funding will be available on favorable terms.