Tiny Ltd Q2 2025 slides: Recurring revenue jumps 37%, FCF turns positive

Published 12/08/2025, 13:44
Tiny Ltd Q2 2025 slides: Recurring revenue jumps 37%, FCF turns positive

Tiny Ltd (TSX:TINY) presented its Q2 2025 earnings results on August 12, 2025, highlighting strong recurring revenue growth, significant free cash flow improvement, and strategic portfolio developments. The company’s stock rose 2.17% following the announcement, trading at $44.20.

Quarterly Performance Highlights

Tiny reported Q2 2025 revenue of $50.0 million, representing a 4% year-over-year increase. More significantly, recurring revenue reached $13.2 million, comprising 26% of total revenue – a substantial increase from 19% in Q2 2024. This 37% year-over-year growth in recurring revenue reflects the company’s strategic shift toward more predictable revenue streams, bolstered by the acquisition of a majority interest in Serato.

As shown in the following chart of recurring revenue growth:

Adjusted EBITDA for Q2 2025 reached $8.2 million (16% margin), a 22% increase compared to $6.8 million (13% margin) in Q2 2024. On a last-twelve-month basis, adjusted EBITDA grew to $35.3 million with an 18% margin, up from $31.8 million (16% margin) in the comparable period.

The following chart illustrates Tiny’s consistent EBITDA improvement:

Detailed Financial Analysis

Tiny’s revenue mix continues to evolve, with Digital Services and Software (ETR:SOWGn) & Apps segments showing growth, while the Creative Platform category experienced a decline. The breakdown shows Digital Services at $19.6 million, Software & Apps at $18.0 million, Creative Platform at $10.3 million, and Other at $2.1 million for Q2 2025.

The revenue composition by category is illustrated here:

One of the most notable improvements came in free cash flow, which reached $6.0 million in Q2 2025, a dramatic $9.7 million improvement from the negative $3.7 million reported in Q2 2024. On a last-twelve-month basis, free cash flow totaled $20.9 million, up $18.9 million year-over-year.

The company’s cash flow transformation is shown in this chart:

Tiny continued its deleveraging efforts, repaying $5.2 million of debt in Q2 2025. As a result, the Net Debt to Adjusted EBITDA ratio improved to 2.8x, down from 3.1x in Q2 2024 and significantly better than the 3.8x reported in Q4 2023.

The following chart demonstrates Tiny’s progress in debt reduction:

Strategic Initiatives

Tiny Fund I, the company’s investment arm, maintained steady performance with revenue of US$11.5 million in Q2 2025, matching Q2 2024 levels. The fund distributed C$0.5 million to Tiny in Q2 2025, slightly up from C$0.4 million in the prior year. The fund’s Net Asset Value increased to US$142.0 million as of June 30, 2025, with Tiny owning 20.34% of the fund.

The fund’s performance metrics are illustrated here:

The company highlighted several strategic achievements across its portfolio companies:

1. Serato successfully integrated with Apple (NASDAQ:AAPL) Music, giving DJs access to over 100 million tracks

2. MetaLab continued to demonstrate strength in AI applications

3. Letterboxd reached 21.4 million members, a 47% year-over-year increase, and announced a transactional video-on-demand service

4. AeroPress launched a new product, the AeroPress Clear XL

Tiny completed its acquisition of Serato on May 12, 2025, which contributed significantly to the increase in recurring revenue. The company’s strategic roadmap emphasizes profitable growth, capital structure optimization, and potential future acquisitions.

The company’s strategic priorities are outlined in this roadmap:

Forward-Looking Statements

Tiny’s management expressed optimism about continued improvement in adjusted EBITDA and margins. The company remains committed to its deleveraging strategy while exploring acquisition opportunities to enhance shareholder value.

According to the earnings call transcript, Jordan Tope, Executive at Tiny, stated: "We are committed to compounding capital at high rates of return for the near term and for the long term," and emphasized the company’s focus on growing its recurring revenue base within the portfolio.

Tiny’s Q2 2025 results demonstrate meaningful progress in its strategic initiatives, particularly in growing recurring revenue and improving cash flow generation. With a strengthening balance sheet and strategic portfolio developments, the company appears well-positioned for sustainable growth despite potential challenges in market saturation and economic uncertainties.

Full presentation:

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