The following is a summary of the Boardwalktech Software Corp. (BWLKF) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Total revenue for Q2 FY2025 was $1.3 million, marking a 16% decrease from the previous year but a sequential growth of 2% from the last quarter.

• Gross margin for the quarter was 88.6%, reflecting slight fluctuation due to cost and revenue variations.

• Adjusted EBITDA for the quarter was a loss of $366,000, showing a marginal improvement year-over-year and a 10% improvement from Q1.

• The company reported a net loss of $0.7 million or $0.01 per share, which is a slight improvement both sequentially and year-over-year.

Business Progress:

• Boardwalktech continued to strengthen its sales and distribution strategy through its land and expand approach, resulting in a 44% CAGR in recurring revenue over the past three years.

• The company expanded its partner ecosystem with new agreements and partner teaming, including an extended partnership with HCLTech and a new agreement with Scadea.

• The Velocity solution for financial services was adopted by a top five US bank, demonstrating significant ROI and compliance benefits, contributing to strong momentum in the banking sector.

Opportunities:

• Expansion strategies and partnerships in the financial services sector with products like Boardwalk Velocity show strong potential for revenue and market penetration.

• The tourism and engagement with banks and large corporations using both the Digital Ledger and Unity Central products indicate growing demand and potential for increased revenue streams in the future.

Risks:

• The company faces risks related to customer retention and market competition, highlighted by the non-renewal of licenses by two customers due to large-scale organizational restructures.

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