1GAAP revenue fell 14.8% year-over-year to $15.1M, linked to variable task order volumes under customer MSAs tied to IT and cybersecurity service demand.
2GAAP gross profit dropped 55.6% year-over-year to $1.6M, with gross margin contracting to 10.7% as lower revenue directly reduced cost-of-revenue offsets per company cost structure dynamics.
3GAAP operating loss totaled $23.4M for fiscal 2025, driven by one-time merger expenses and corporate investments to build out management and brand capabilities for growth.
4GAAP net loss came to $23.7M for the year, compared to $1.2M in net income for fiscal 2024, with diluted EPS of -$13.39 per share.
5Net cash used in operating activities was $12.1M for fiscal 2025, with free cash flow of -$12.5M inclusive of $455,000 in capital expenditures for the year.
6Management believes existing liquidity sources (cash on hand, capital market access, operating cash flow) will cover the company’s near-term operating requirements.