T Stamp Inc. Reports Q1 2025 Financial Results with $2.16 Million Net Loss

T Stamp Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $2.16 million, a decrease from a net loss of $2.68 million in the same period last year. The company's revenue for the quarter was $545,471, down 4.92% from $573,676 in the prior year. This decline in revenue was attributed to a new software amendment with Mastercard that reduced fixed monthly license fees, partially offset by increased income from a new agreement with QID Technologies LLC, which contributed $88,000 in revenue.

Operating expenses for T Stamp decreased significantly to $2.71 million from $3.42 million year-over-year, primarily due to a 28.26% reduction in selling, general, and administrative expenses, which fell from $2.49 million to $1.79 million. This reduction was driven by cuts in salaries and stock-based compensation, as well as a decrease in the sales team size. Research and development expenses also saw a slight decline, down 3.23% to $437,235, reflecting a shift from outsourced software development to internal resources.

In terms of operational metrics, T Stamp's customer base has expanded, with 94 financial institutions now utilizing its Orchestration Layer, a low-code platform designed for identity verification services. The company has also made strategic moves, including the appointment of Lance Wilson as Chief Financial Officer and the opening of a new office in Tokyo to pursue opportunities in the Asia-Pacific region. Additionally, T Stamp entered into an Equity Distribution Agreement with Maxim Group LLC, allowing it to sell up to $6.2 million in common stock to bolster its capital resources.

As of March 31, 2025, T Stamp's total assets stood at $6.63 million, a decrease from $8.60 million at the end of 2024. The company reported cash and cash equivalents of $1.14 million, down from $2.78 million at the end of the previous year. T Stamp's accumulated deficit has now reached $63.62 million, raising concerns about its ability to continue as a going concern without additional financing. The company plans to raise capital to meet its operational needs and has indicated that it is in advanced negotiations for significant additional revenue, although no assurances can be made regarding the success of these efforts.

Looking ahead, T Stamp aims to enhance its product offerings and expand its market presence, particularly in the identity verification sector. The company is focused on leveraging its artificial intelligence capabilities to address growing market demands while navigating the challenges of generating consistent revenue and managing operational costs.