0001654954-26-003294
SEC filingQuoteMedia achieved 8% revenue growth in FY2025, but a shift from capitalizing to expensing development costs deepened operating losses to -$2.1M.
QuoteMedia generated $20.3M in revenue for FY2025, an 8.1% increase from the prior year's $18.7M. This growth was primarily driven by the Corporate Quotestream segment, which benefited from both an expanded customer base and higher average revenue per customer. Gross profit rose 6.8% to $9.5M, maintaining a gross margin of 46.8%, demonstrating the company's ability to scale its core market data services while preserving unit economics.
The company reported an operating loss of -$2.1M, a significant widening from the prior year's -$1.3M operating loss. Management attributed this deterioration primarily to a shift in development cost accounting: a higher percentage of development salaries were expensed rather than capitalized because more development time was dedicated to system maintenance and activities that did not meet capitalization criteria. This accounting shift, rather than operational inefficiency, was the primary driver of the 63.8% year-over-year increase in operating losses. Net income declined to -$2.3M, or -$0.03 per diluted share, compared to -$1.3M, or -$0.01 per diluted share, in the prior year. An increase in stock-based compensation expense related to the extension of options and warrants partially offset a decrease in sales and marketing salary expenses.
Management continues to develop and launch new modules of QMod, the company's new proprietary Web delivery system, positioning the platform for mobile-ready, SEO-friendly content delivery. The company is also developing new proprietary data sets and analytics to reduce dependency on third-party data providers. For FY2026, management expects revenue growth and improvement in net loss based on contracted revenue, with the impact of increased development expensing expected to diminish over time. Future performance remains subject to market conditions, competitive dynamics, and the company's ability to secure additional financing if required.