Quotemedia Reports 5% Revenue Growth but Increased Net Loss in Q2 2025

Quotemedia, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 5% to $4.93 million compared to $4.68 million in the same period of 2024. For the six months ending June 30, 2025, total revenue reached $9.75 million, up 4% from $9.36 million in the prior year. The growth in revenue was primarily driven by a 14% increase in Corporate Quotestream revenue, which amounted to $2.02 million for the quarter, and a 12% increase for the six-month period. However, the company experienced a net loss of $853,582 for the quarter, compared to a loss of $251,173 in the same quarter last year, and a six-month net loss of $1.35 million, up from $279,349 in 2024.

The company's operating expenses rose significantly, with total operating expenses increasing by 20% to $3.01 million for the three months ended June 30, 2025, and by 14% to $5.56 million for the six-month period. Notably, software development expenses surged by 64% for the quarter and 45% for the half-year, attributed to a higher proportion of development salaries being expensed rather than capitalized. This shift occurred as the company reduced its development staff in late 2024, leading to increased costs associated with system maintenance and other non-capitalizable development activities.

Quotemedia's balance sheet as of June 30, 2025, showed total assets of $6.66 million, a decrease from $7.56 million at the end of 2024. Current liabilities increased to $6.22 million, up from $5.42 million, largely due to a rise in accounts payable and accrued liabilities. The company reported a working capital deficit of $4.35 million, which includes $2.09 million in deferred revenue. Despite the deficit, Quotemedia indicated that its cash position of $414,144 would be sufficient to fund operations for at least the next 12 months, although additional financing may be required for future growth initiatives.

In terms of strategic developments, Quotemedia continues to focus on expanding its product lines and enhancing its infrastructure. The company is actively working on new features and data offerings, including the introduction of proprietary data sets and analytics. Additionally, Quotemedia plans to leverage artificial intelligence tools to improve product development processes. The company aims to increase sales of its Interactive Content and Data APIs and expand its Data Feed Services client base, particularly through new international data feed coverage.

Looking ahead, Quotemedia anticipates continued revenue growth for the remainder of 2025, supported by contracts already in place. However, the company remains cautious about potential market uncertainties, including inflation and economic slowdowns, which could impact client spending. The management has acknowledged the need for ongoing evaluation of its operational strategies and financial health to navigate these challenges effectively.