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CALGARY, Alberta - Quorum Information Technologies Inc. (TSX-V: QIS), a software service provider for automotive dealerships and manufacturers in North America, announced its financial results for the first quarter ended March 31, 2025. The company, currently valued at $100.3 million, maintained consistent revenue year over year despite tariffs affecting the automotive industry. According to InvestingPro data, the stock has declined 6.3% year-to-date, reflecting broader market challenges.
Quorum’s total revenue for Q1 2025 slightly increased by 1% to $10.2 million compared to the first quarter of the previous year. The company’s SaaS revenue saw a similar 1% rise to $7.2 million, while BDC revenue experienced a more significant growth of 4% to $2.6 million. Recurring revenue, a key indicator of stability, grew by 1%.
The company’s gross margin fell by 5% to $4.8 million, with the gross margin percentage dipping from 51% to 48%. InvestingPro analysis highlights this as a key concern, with weak gross profit margins identified as a significant challenge. Adjusted EBITDA stood at $1.5 million, a decrease of 29% from Q1 2024, leading to a reduced Adjusted EBITDA margin of 15%. Cash EBITDA also declined by 27% to $1.0 million, resulting in a Cash EBITDA margin of 10%. Despite these challenges, the company maintains a healthy 5.29% dividend yield.
Maury Marks, President and CEO of Quorum, highlighted the company’s cost-saving measures, which are expected to result in $1.3 million in annual savings by Q3 2025. These savings stem from a gross margin improvement plan, office lease cost savings, and reductions in third-party service provider expenses. Marks also noted that Quorum paid down a total of $0.8 million on its BDC Capital Cash Flow Loan in Q1 2025 and after the quarter’s end.
Additionally, Quorum announced changes to its Board of Directors, with Steve Hammond replacing Scot Eisenfelder, who is stepping down after 16 years of service.
Quorum is set to discuss these results in a conference call with an audio webcast scheduled for Thursday, May 29th, 2025.
The results, along with the company’s strategies, reflect Quorum’s focus on providing a suite of 13 essential software solutions and services to automotive dealerships. These offerings are crucial to Quorum’s growth strategy, which aims to enhance product cross-selling and drive dealership success. While InvestingPro rates the company’s overall financial health as GOOD, subscribers can access additional insights and detailed analysis about the company’s growth prospects and valuation metrics.
This article is based on a press release statement from Quorum Information Technologies Inc.
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