Pivotree Announces Third Quarter 2025 Results

Four Consecutive Quarters of Strong Gross Margins and Operational Discipline Drive $7.2M in Adjusted EBITDA and $3.6M in Net Income Over Trailing-Twelve Months.

TORONTO, ONTARIO / ACCESS Newswire / November 13, 2025 / Pivotree Inc. (TSXV:PVT) ("Pivotree" or the "Company"), a leader in frictionless commerce solutions, today reported financial results for the three and nine month period ended September 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.

"We've turned Pivotree into a consistent EBITDA¹ and cash producer, with our third consecutive quarter of profitability delivering $900k in net income." said Bill Di Nardo, CEO of Pivotree. "Our operational discipline and client-focused execution have established the solid foundation we needed. Now, as we navigate the rapidly evolving AI and commerce technology landscape, we are well positioned to capitalize on the growth opportunities ahead."

Pivotree also announced today that it has released a letter to shareholders from Bill Di Nardo, CEO. The letter can be accessed from the Company's website at investor.pivotree.com and filed on SEDAR at www.sedar.com.

Third Quarter 2025 Financial Highlights
(All figures are in Canadian dollars and all comparisons are relative to the three-month period ended September 30, 2024 unless otherwise stated):

• Net income of $0.9 million compared to a net loss of $5.1 million for the prior year period, primarily due to reduced operating expenses as a result of prior year restructure efforts.

• Adjusted EBITDA¹ of $1.8 million compared to an adjusted EBITDA¹ of $(0.8) million for the prior year period. The continued strength in EBITDA is the result of the improved gross margins and operational expense restructuring that took place during 2024.

• The business realized sequential quarter growth within Managed and IP Solutions (MIPS) which was offset by declines in Legacy Managed Services (LMS) as described below, leading to total revenue of $15.5 million and a 17.7% decline from Q3 2024

  • Managed and IP Solutions (MIPS) Revenue increased 2.3% to $3.9M in Q3 2025, from $3.8M in Q3 2024, related to strong double-digit growth in SKU build, helping more than offset a decline in application support largely driven by a single customer.

  • Legacy Managed Services (LMS) Revenue declined 56.7% to $2.1M in Q3 2025, from $4.9M in Q3 2024, related to churn and melt of Legacy Oracle customers.

  • Professional Services Revenue of $9.5 million, a decrease of 6.5%. These three month ended results contain new customer projects, which helped partially offset completed projects from the prior year.

• Gross margin improved to 46.8% of total revenue yielding gross profit of $7.3 million, compared to $7.3 million or 38.7% of revenue for the prior year period. Professional service margins were particularly strong, contributing to the overall gross margin improvement.

Third Quarter 2025 Business Highlights

• The Commerce group delivered strong Total Contract Value (TCV) bookings, highlighted by multiple seven-figure extensions for integration projects. Additionally, the group secured a number of smaller extensions across its VTEX and microservices engagements. Notably, Q3 saw a significant spike in LMS TCV bookings, driven by renewals of Oracle contracts.

• The Data team had success securing six new logos in Q3. These wins include key implementations of Stibo and Akeneo, with two projects initiating with a SKU Build commitment. The group also secured two new logos specifically for SKU Build Proof-of-Concepts. Multiple renewals across our application support contracts also contributed to the group's overall MIPS TCV bookings for the quarter.

• Q3 marked the best quarter of TCV bookings in FY25 for the Supply Chain business. This performance was largely driven by securing a number of large extensions for OMS Professional Services engagements.

Third Quarter 2025 Results

Selected Financial Measures

Results of Operations

The following table outlines our consolidated statements of income (loss) and comprehensive income (loss) for the three months ended September 30, 2025 and 2024.