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IP Strategy Holdings (IPST) Q1 2025 earnings results (first quarter 2025)

10-Q filed May 20, 2025

IP Strategy Holdings (IPST) reported revenue of $1.1M for the first quarter 2025 (Q1 2025), -36% from a year earlier and -65% from the quarter before. Operating margin was -224.5%, net loss $3.0M (277.8% of revenue).

Revenue$1.1M
Year over year-36%
Quarter over quarter-65%
Operating margin-224.5%
Net earnings−$3.0M

IP Strategy Holdings, Q1 2025: revenue $1.1M (-36% year over year), operating margin -224.5%, net loss $3.0M, operating cash flow −$2.0M. The chart follows the revenue to costs, profit and cash.

Q1 2025AmountQ/QY/Y
Revenue$1.1M-65%-36%
Operating profit−$2.5M——
Net earnings−$3.0M——
Operating cash flow−$2.0M——

What changed

Revenue was $1.1M in Q1 2025, down 36% year over year and down 65% from the previous quarter. Direct to Consumer was the largest line at 52% of revenue. Services lost $220K year over year (down 46%), 36% of the total change.

Gross margin was 24.9%, up 1.0 points from a year earlier. Operating costs exceeded revenue by $2.5M, an operating margin of -224.5%. Operating expenses grew 3% against a revenue fall of 36%. The fastest-growing cost line was Sales & marketing (+11%). The quarter ended with a net loss of $3.0M, narrower than the previous quarter's $4.7M loss.

Operating cash flow was −$2.0M. Non-cash charges added back $297K of depreciation. Working capital and other items added $705K. Capital expenditures of $17K exceeded it, leaving free cash flow of −$2.0M.

Questions

What was IP Strategy Holdings' revenue in the first quarter 2025?

IP Strategy Holdings (IPST) reported revenue of $1.1M for the first quarter 2025 (Q1 2025), -36% from a year earlier and -65% from the quarter before.

Was IP Strategy Holdings profitable in the first quarter 2025?

Operating loss was $2.5M (-224.5% of revenue) and net loss $3.0M.

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Source: IP Strategy Holdings 10-Q on SEC EDGAR.