10-K: QuoteMedia Reports FY2025 Results, Revenue Up 8%

QuoteMedia, Inc. has filed its annual report for the fiscal year ended December 31, 2025, detailing an 8% increase in total licensing revenue to $20.25 million, alongside a net loss of $2.32 million.

Summary

• QuoteMedia, Inc. reported an 8% increase in total licensing revenue for the fiscal year ended December 31, 2025, reaching $20.25 million, up from $18.74 million in the prior year.
• The company experienced an operating loss of $2.10 million for the fiscal year 2025, compared to an operating loss of $1.28 million in 2024.
• Net loss for the fiscal year 2025 was $2.32 million, an increase from the net loss of $1.33 million in 2024.
• Basic and diluted loss per share was ($0.03) for 2025, compared to ($0.01) for 2024.
• The company's cash position decreased to $319,889 as of December 31, 2025, from $585,319 at the end of 2024.
• There are substantial doubts about the company's ability to continue as a going concern due to accumulated losses and insufficient cash to fund operations for the next 12 months without additional financing.
• Software development expenses increased significantly by 58% to $5.01 million in 2025, primarily due to a lower percentage of development salaries being capitalized.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the increased net loss, widening operating loss, declining cash reserves, and the explicit statement of substantial doubt regarding the company's ability to continue as a going concern, despite revenue growth.

Positives

• Total licensing revenue increased by 8% to $20.25 million in fiscal year 2025.
• Revenue from Corporate Quotestream saw a 14% increase, driven by more customers and higher average revenue per customer.
• Interactive Content and Data APIs revenue grew by 5%, attributed to an increase in average revenue per client.
• The company continues to leverage its QMod technology for mobile-ready, SEO-friendly web content.
• Plans for fiscal year 2026 include expanding product lines, improving infrastructure, and leveraging AI tools for automation.

Negatives

• The company incurred a net loss of $2.32 million in fiscal year 2025, an increase from $1.33 million in 2024.
• Operating loss widened to $2.10 million in 2025 from $1.28 million in 2024.
• Cash and cash equivalents decreased by $265,430 to $319,889 as of December 31, 2025.
• There is substantial doubt about the company's ability to continue as a going concern.
• Software development expenses increased by 58% to $5.01 million due to a lower capitalization rate of development salaries.
• The allowance for doubtful accounts increased to $570,000 from $330,000.

Risks

• Substantial doubt exists about the company's ability to continue as a going concern due to accumulated losses and insufficient cash for operations.
• The company relies on key suppliers for market data, and disruption of license agreements could adversely impact operations.
• Adverse capital and credit market conditions could limit access to necessary capital.
• Competition from companies with greater financial resources could limit market share and margins.
• New product offerings by competitors or new technologies could render current services obsolete.
• The company may need additional capital to implement its business plan, and there is no assurance that such financing will be available.
• The loss of key personnel could have a material adverse effect on the business.
• Cybersecurity threats pose a risk, although the company has implemented security measures and obtained SOC 2 Type II certification.
• Penny stock rules may make buying or selling common stock more difficult for investors.

Future Outlook

For fiscal year 2026, QuoteMedia expects an increase in revenue growth and a significant improvement in the net loss. The company plans to continue expanding its product lines, improving infrastructure, and leveraging AI tools. Development costs are expected to continue impacting earnings in 2026, though the impact will diminish over time. The company anticipates increased revenue and costs in fiscal year 2026 due to expansion efforts.

Management Comments

• Management expects an increase in revenue growth and a significant improvement to the net loss for fiscal year 2026.
• Management is continuing to develop and launch new modules of QMod, its proprietary web delivery system, emphasizing its mobile-ready and SEO-friendly features.
• Management plans to continue leveraging artificial intelligence (AI) tools to automate development processes.
• Management believes its current facilities are adequate for the foreseeable future and that suitable additional or alternative space will be available as needed.
• Management has evaluated the effectiveness of disclosure controls and procedures and concluded they are effective, but identified material weaknesses in internal control over financial reporting.

Industry Context

StockSavvy.ai notes that QuoteMedia operates in the highly competitive financial data and software solutions market, facing established players like Bloomberg, LSEG Data & Analytics, and Factset. The company's strategy focuses on offering a comprehensive, single-source solution with advanced technology and customization, aiming to differentiate itself through speed, quality, and cost-effectiveness, particularly with its QMod technology for mobile and SEO-friendly content delivery.

Comparison to Industry Standards

• Competitors like Bloomberg and LSEG Data & Analytics offer extensive financial data and analytics platforms, often serving a broader range of institutional clients.
• Factset also provides a comprehensive suite of financial data and analytics, competing directly with QuoteMedia in serving financial professionals.
• QuoteMedia differentiates itself by emphasizing its single-source provider advantage, proprietary QMod technology for customizable and SEO-friendly web content, and a focus on lower infrastructure costs enabling competitive pricing.
• The company's data delivery solutions are described as fast, lightweight, reliable, and easy to implement, aiming to be more advanced than many competitors' legacy infrastructures.

Legal Proceedings

• None.

Related Party Transactions

• The company has a five-year office lease with 410734 B.C. Ltd., of which David M. Shworan (CEO of Quotemedia Ltd.) is a control person. Amounts due to this entity were $41,679.09 at December 31, 2025.
• The company pays a monthly marketing service fee of $3,000 to Bravenet Web Services, Inc. (Bravenet), of which David M. Shworan is a control person. Amounts due to Bravenet were $64,483 at December 31, 2025.
• Bravenet advanced the company $72,000 on February 25, 2025, with no fixed repayment terms or interest.
• As of December 31, 2025, there were $139,670 in unreimbursed expenses owed to Keith Randall (CEO of Quotemedia, Inc.).
• All significant related party transactions are subject to review and approval by the Board of Directors.

Stakeholder Impact

• Shareholders: The company's going concern issues and increased net loss may negatively impact shareholder value. Potential future equity offerings could lead to dilution.
• Employees: The company plans to hire additional employees in fiscal 2026 to handle anticipated growth, but also reduced development staff in late 2024.
• Customers: The company's reliance on key data suppliers and potential disruptions could impact service delivery. Cost-cutting pressures in client industries may affect demand for services.
• Creditors: The company's going concern status and need for additional financing could impact its ability to meet debt obligations.

Next Steps

• Continue to expand product lines and improve infrastructure in 2026.
• Add more features and data to existing products and release newer versions with improved performance and flexibility.
• Continue to leverage artificial intelligence (AI) tools for automation.
• Maintain focus on marketing Quotestream for brokerage firm deployments and expand into the investment professional market with Quotestream Professional.
• Continue growth of Data Feed Services client base, including adding major new international data feed coverage and new data delivery products.
• Focus on increasing sales of Interactive Content and Data APIs, particularly for large-scale enterprise deployments.
• Implement broad expansion of data and news coverage in 2026, including international exchange data, video feeds, fixed-income coverage, and new/upgraded market information products.
• Continue development and deployment of trade integration capabilities.
• Create new proprietary data sets, analytics, and scoring mechanisms by aggregating data directly from sources.
• Evaluate and pursue development of additional new products for potential commercialization.

Key Dates

Recommendation

While revenue shows growth, the widening net loss, declining cash position, and explicit going concern warning are significant concerns. The company's ability to secure future financing is critical. A 'hold' recommendation reflects the potential for recovery driven by new product development and market expansion, balanced against the substantial financial risks.

Keywords

QuoteMedia, Financial Data, Market Data, Software Solutions, API, Portfolio Management, OTC, 10-K, Annual Report, Financial Software