Boardwalktech Software Corp.

Boardwalktech reported Q2 fiscal 2025 revenue of $1.3 million, down 16% from $1.5 million a year ago and up 2% sequentially from $1.2 million last quarter. Gross margin was 88.6%, compared with 90.1% in the prior-year quarter and 87.9% in Q1. Adjusted EBITDA was a loss of $366,000 versus a $359,000 loss last year and a $407,000 loss in Q1. Net IFRS loss was $0.7 million, or $0.01 per basic and diluted share. Cash flow from operations was a positive $219,000, ARR was $4.6 million, and the company ended the quarter with about $800,000 of cash and collected trade receivables, $2.2 million of net debt, and $128,000 of positive pro forma working capital. Management did not give formal next-quarter or full-year financial guidance, but said it expects increased revenue and overall business improvement in 2025, with gross margins expected to increase as revenue grows, though they may fluctuate period to period.

Andrew Duncan emphasized the company’s shift toward a land-and-expand, partner-led sales model, saying the strategy is intended to lower customer acquisition costs and support recurring SaaS revenue. He highlighted traction with large global IT services partners, including TCS and HCLTech, and said the Velocity product is addressing EUC risk and compliance needs at banks. His tone was upbeat and forward-looking, with repeated references to a stronger pipeline, more partner-driven deals, and expected growth in 2025.

Charlie Glavin focused on the quarter’s financial progress despite lower revenue. He cited 88.6% gross margin, a $366,000 adjusted EBITDA loss, positive operating cash flow of $219,000, and a $641,000 year-to-date reduction in adjusted operating expenses versus the prior-year period. He also noted that the company finished with approximately $800,000 of cash and collected receivables, $2.2 million of net debt, and just under $900,000 of credit facility availability, explaining that timing under the ARR debt facility affects cash collection visibility.

Analysts asked why the company now references two main products instead of three, and management explained that Digital Ledger remains the core platform while Velocity is the Excel-automation layer and Unity Central focuses on document and information management. They also asked about the top-five U.S. bank deployment, where management said usage has accelerated since March, the bank credited Boardwalk with helping it meet regulatory targets, and over 1,000 employees are now using Velocity. Management framed new partner signings as leading indicators of future revenue and said the partner channel should show more expansion in 2025.