Pivotree Q3 2025 slides: AI strategy advances amid revenue challenges

Introduction & Market Context

Pivotree Inc. (TSXV:PVT) presented its Q3 2025 earnings results on November 13, 2025, revealing a company in transition. The commerce solutions provider reported mixed financial results, with declining overall revenue but growth in strategic segments and improved profitability metrics. Trading at $1.51 per share, the stock sits closer to its 52-week high of $1.85 than its low of $0.73, suggesting investor confidence in the company’s strategic direction despite revenue headwinds.

The presentation highlighted Pivotree’s focus on AI-driven commerce solutions across three key verticals: Industrial Manufacturing & Distribution, Automotive, and Retail, with a combined estimated total addressable market of $121 billion. CEO Bill DiNardo emphasized the company’s shift from rules-based automation to autonomous decision-making systems, positioning Pivotree to capitalize on the growing demand for frictionless commerce solutions.

Quarterly Performance Highlights

Pivotree reported total revenue of $15.5 million for Q3 2025, representing an 18% year-over-year decline from Q3 2024’s $18.8 million. However, the company highlighted positive momentum in its strategic Managed & IP Solutions (MIPS) segment, which grew 5% quarter-over-quarter to $3.9 million.

As shown in the following chart of quarterly revenue trends, Pivotree’s overall revenue composition continues to shift as the company winds down its Legacy Managed Services (LMS) business while growing its MIPS segment:

The company reported Q3 2025 MIPS + Professional Services (PS) Total Contract Value (TCV) Bookings of $14.4 million, representing a 6% increase on a trailing twelve-month basis, though down 3% quarter-over-quarter. Professional Services bookings showed particular strength, growing 8% quarter-over-quarter to $12.2 million.

This bookings trend is illustrated in the following chart:

From a profitability perspective, Pivotree maintained consistent performance with Adjusted EBITDA of $1.8 million (12% margin) in Q3 2025, marking the fourth consecutive quarter of positive EBITDA. The company also reported approximately $1 million in net income for the quarter.

Strategic Initiatives

Pivotree’s presentation emphasized its strategic focus on "Frictionless Commerce," a framework built around five key components the company calls "gates." This strategic vision aims to position Pivotree at the forefront of AI-driven commerce solutions.

The company’s Frictionless Commerce framework is illustrated in the following diagram:

Pivotree has identified three target industry verticals with specific characteristics that align with its solutions. The company is focusing on industries with complex product catalogs, high transaction volumes, and digital transformation needs:

CEO Bill DiNardo addressed the company’s AI strategy during the earnings call, taking a measured approach: "We’re not changing our name to Pivotree.ai tomorrow, and we’re certainly not going to overhype this. It’s a tool." He further noted that AI adoption would accelerate "when CEOs and CFOs see material gains in automation and efficiencies, reducing human touch points to complete transactions."

Financial Analysis

Pivotree’s financial position strengthened during Q3 2025, with cash balances increasing from $8.6 million at the end of Q2 to $11.8 million by quarter-end. This $3.2 million improvement was driven by $1.7 million in cash flow from normal course operating activities and $1.9 million from working capital improvements and foreign exchange effects.

The company’s cash flow dynamics are illustrated in the following waterfall chart:

Gross margins improved significantly year-over-year, reaching 46.8% in Q3 2025 compared to 38.7% in the same period last year. This improvement reflects the company’s shift toward higher-margin service offerings and operational efficiencies.

Pivotree has maintained consistent earnings performance over the past several quarters, as shown in the following chart:

Forward-Looking Statements

Looking ahead, Pivotree outlined three key priorities for the remainder of 2025:

The company aims to maintain 7-10% EBITDA margins and positive cash flow while investing in growth initiatives. Management expects to continue executing on its new logo pipeline and accelerating proof-of-concepts for AI-driven "agentic" solutions to set the stage for 2026 growth.

Analysts forecast an EPS of $0.01 for both FY2026 and FY2027, with revenue projections of $11.88 million for both years. These conservative estimates suggest analysts are taking a cautious approach to Pivotree’s growth trajectory despite the company’s strategic initiatives.

While Pivotree faces challenges from declining legacy revenue and increasing competition in the AI space, its improved cash position and consistent profitability provide a foundation for executing its strategic vision. The company’s success will depend on its ability to accelerate adoption of its MIPS offerings while effectively managing the wind-down of legacy services.

Full presentation:

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