NowVertical Group Inc., a prominent data and artificial intelligence solutions provider, has officially released its financial performance metrics for the third quarter concluding on September 30, 2025. The Toronto-based company, trading on the TSX Venture Exchange under the symbol NOW, disclosed both challenges and strategic victories during the period.
Strategic Transition Yields Positive Results
Company CEO Sandeep Mendiratta expressed satisfaction with the quarter's outcomes, highlighting the successful continuation of building a more profitable, enterprise-centric organization. The reported revenue reflects an intentional business shift toward high-value strategic accounts that contribute more substantially to EBITDA and future expansion.
Revenue from the company's top 30 clients now represents a significant 69% of total revenue, demonstrating impressive growth exceeding 23% for the first nine months of 2025 compared to the same timeframe in 2024.
Financial Performance Metrics
The company recorded $9.1 million in revenue during the third quarter of 2025, marking a 15% decrease from the $10.7 million reported in the same quarter of 2024. This decline primarily stemmed from the devaluation of the Argentine peso, which caused a $1.0 million deflation in revenue figures.
For the nine-month period ending September 30, 2025, total revenue reached $27.7 million, a modest 3% decrease from the $28.6 million recorded during the comparable period in 2024, again affected by currency deflation.
Gross profit maintained a healthy 51% margin, totaling $4.7 million for Q3 2025. This represents an 11% decrease from the $5.3 million reported in Q3 2024. Year-to-date gross profit stood at $13.6 million, reflecting an 8% decline from the previous year's $14.8 million.
Operational Efficiency and Partnership Success
Through its 'One Brand, One Business' integration approach, NowVertical has preserved industry-leading margins while achieving positive operating income and year-to-date adjusted EBITDA growth. This strategic positioning allows for significant expansion potential as larger enterprise accounts scale and recurring revenue streams deepen.
The company's strengthened collaboration with Google Cloud has emerged as a notable success story. NowVertical stands among a limited group of global partners certified across Data, Machine Learning, and Generative AI specializations.
This partnership has already generated over $3.4 million in revenue this year and created twenty new enterprise opportunities, signaling strong future growth potential.
Administrative expenses saw a 9% increase to $4.3 million in Q3 2025, primarily due to elevated share-based compensation provided to employees. However, year-to-date administrative expenses decreased by 16% to $11.1 million, indicating improved cost management over the longer term.
Income from operations reached $0.4 million for the quarter, while adjusted EBITDA achieved 20% of revenue at $1.8 million. Year-to-date figures showed more robust performance with income from operations climbing 55% to $2.5 million and adjusted EBITDA increasing 17% to $5.4 million.
Company leadership emphasized that with this solid foundation and an improved balance sheet, NowVertical stands well-positioned to accelerate growth and deliver sustained long-term value to its shareholders.
