CreditRiskMonitor Announces 2025 Results

Rhea-AI Summary

CreditRiskMonitor (OTCQX:CRMZ) reported 2025 operating revenue of $20.1 million (+2%), operating income of $582,000 (down ~53%), and net income of $1.02 million (down ~39%).

The company holds ~$18.9 million in cash/U.S. Treasuries, completed SOC2 Type 1, added senior leadership, and plans transformation investments over the next 12–24 months with expected margin benefits beginning in 2027.

Positive

• $18.9M in cash and U.S. Treasury securities with no debt
• Achieved SOC2 Type 1 certification, improving enterprise credibility
• Added senior leadership roles including COO, CTO, VP of Data Science

Negative

• Operating income fell ~53% to approximately $582,000 in 2025
• Net income declined ~39% to approximately $1.02 million in 2025
• Transformation-related expenses depressed 2025 profitability and may cause 2026 operating losses

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TARRYTOWN, NY / ACCESS Newswire / March 24, 2026 / CreditRiskMonitor.com, Inc. (OTCQX:CRMZ) reported operating revenues of $20.1 million, an increase of approximately $314 thousand or 2%, for the year ended December 31, 2025, as compared to 2024. The Company reported operating income of approximately $582 thousand, a decrease of approximately $668 thousand or 53%, for 2025 compared to 2024. The decrease in operating profitability was primarily driven by an increase in expenses related to employee compensation and professional services incurred during transformation initiatives. The Company reported net income of approximately $1.02 million, a decrease of approximately $657 thousand or 39%, for 2025 as compared to 2024. The Company plans to continue making investments in transformation related to new systems, processes, and AI tools over the next twelve to twenty-four months, funded via its internal operations and significant cash balances built up over the years. It expects to produce significant productivity gains from these investments that should translate into improved margins starting in 2027.

"2025 was a year of meaningful transition for CreditRiskMonitor. Revenue growth slowed relative to our historical pace as many businesses adopted a 'wait and see' posture in the face of tariff uncertainty, geopolitical volatility, and mounting recessionary signals. While these conditions increased demand for demonstrations of our products, they also extended sales cycles and delayed deal closings. While we expected a dip in revenue productivity related to our transition to a new CRM system and go-to-market structure reorganization with dedicated Client Success and Inside Sales roles, we are not satisfied with this growth rate. We have taken deliberate steps to address it, including the overhaul of our Revenue Operations function and its integration with Marketing for improved pipeline visibility and accountability, continuous process refinement and training, expanded performance management, and the formalization of a Solutions and Partnerships function to own the growing demand from clients and prospects for data integrations into workflows.

We also added senior leadership across several critical functions, including a Chief Operating Officer, a Chief Technology Officer, and a Vice President of Data Science. These leaders have hit the ground running and bring the rigor and accountability we need to reach our next level of performance, while remaining mindful of the culture that has made CreditRiskMonitor a trusted brand for over 25 years. While our transformational progress has yet to show up in the financial results, the foundation is being built, and we are excited for the next phase. Notable progress includes building a more disciplined and transparent lead pipeline with scoring, formalizing Key Performance Indicators for overall health of existing customers in the CRM, creating a dedicated Product function to give our roadmap and prioritization process the ownership it deserves, investing in deep application of AI to data extraction and transformation into our products, and achieving our SOC2 Type 1 certification -- an important trust and credibility signal for enterprise clients and a meaningful milestone on our path toward Type 2 as we work to become more deeply embedded in our clients' workflows and agentic processes.

The macroeconomic backdrop continues to validate the need for our products, and the environment has grown considerably more acute in 2026. In 2025, corporate bankruptcy rates reached their highest levels in over a decade, driven by the sustained higher interest rate environment, persistent trade tensions, and the residual effects of years of overleveraged balance sheets. Now, the outbreak of military conflict in the Middle East and the subsequent Iranian closure of the Strait of Hormuz have introduced a new and potentially durable layer of risk to the global economy. The Strait accounts for roughly 20% of global oil supply and significant volumes of LNG, fertilizer, and other critical commodities, so the inflationary pressure from this supply shock could further complicate central bank interest rate decisions.

For our clients, this translates directly into greater financial risk across their counterparty universes, on both the trade credit side and throughout their supplier networks. Businesses carrying heavy debt loads, depending upon constrained supply chains, or operating in energy-intensive industries are the most exposed and are precisely the counterparties our FRISK®, PAYCE®, and FAST Rating analytics are built to continuously monitor and alert about before a filing or a disruption forces the issue. Our Confidential Financial Statements Solution product enables clients to extend FRISK® coverage to their material private company counterparties anywhere in the world by allowing seamless contribution and processing of private company financial statements.

As always, our north star remains delivering subscription services whose value exceeds their cost to our clients. We remain committed to staying operationally profitable while transforming, though 2026 will likely incur non-recurring expenses that could result in a loss from operations. The Company is fiscally strong enough to support this potential outcome with no debt and approximately $18.9 million in cash or U.S. Treasury securities as of December 31, 2025."

A full copy of the financial statements can be found at https://crmz.ir.edgar-online.com/

Overview

CreditRiskMonitor.com, Inc. (creditriskmonitor.com) sells a suite of web-based, SaaS subscription products providing access to comprehensive commercial credit reports, bankruptcy risk analytics, financial and payment information, and curated news on public and private companies worldwide. Our primary SaaS subscription products for analyzing commercial financial risk are CreditRiskMonitor® and SupplyChainMonitor™. These products help corporate credit and procurement professionals stay ahead of and manage financial risk more quickly, accurately, and cost-effectively. Our subscribers include nearly 40% of the Fortune 1000 and well over a thousand other large corporations worldwide.

To help subscribers prioritize and monitor counterparty financial risk, our SaaS platforms offer the proprietary FRISK® and PAYCE® Scores as well as the FAST Rating, the well-known Altman Z"-Score, agency ratings from key Nationally Recognized Statistical Rating Organizations ("NRSROs"), curated news, and detailed financial spreads & ratios. Our FRISK® and PAYCE® Scores are financial distress classification models that measure a business's probability of bankruptcy within a year. The FRISK® score also includes a risk signal based on the aggregate research behaviors of our subscribers, who control counterparty access to trade credit at some of the most sophisticated companies in the world. The inclusion of this risk signal boosts the overall accuracy of this bankruptcy analytic by lowering the false positive rate for the riskiest corporations.

Through its Trade Contributor Program, the Company receives monthly confidential accounts receivables data from hundreds of subscribers and non-subscribers, which it parses, processes, aggregates, and reports to summarize the invoice payment behavior of B2B counterparties without disclosing the specific contributors of this information. The size of the Trade Contributor Program's current annualized trade credit transaction data is approximately $3 trillion.

Safe Harbor Statement

Certain statements in this press release, including statements prefaced by the words "anticipates", "estimates", "believes", "expects" or words of similar meaning, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, expectations or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among others, risks associated with the COVID-19 pandemic and those risks, uncertainties and factors referenced from time to time as "risk factors" or otherwise in the Company's Registration Statements or Securities and Exchange Commission Reports. We disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, a future event, or otherwise.

CONTACT:

CreditRiskMonitor.com, Inc.
Mike Flum, Chief Executive Officer
(845) 230-3037
ir@creditriskmonitor.com

SOURCE: CreditRiskMonitor.com, Inc.

View the original press release on ACCESS Newswire

FAQ

What were CreditRiskMonitor's (CRMZ) full-year 2025 revenue and profit figures?

CreditRiskMonitor reported $20.1 million in operating revenue for 2025 and $1.02 million in net income. According to CreditRiskMonitor.com, operating income was about $582,000, down roughly 53%, driven by higher compensation and professional services.

How much cash did CreditRiskMonitor (CRMZ) hold at December 31, 2025?

The company held approximately $18.9 million in cash or U.S. Treasury securities as of December 31, 2025. According to CreditRiskMonitor.com, this liquidity and no debt position support planned transformation investments.

Why did CreditRiskMonitor (CRMZ) report lower profitability in 2025?

Profitability declined due to increased expenses for employee compensation and professional services tied to transformation initiatives. According to CreditRiskMonitor.com, these investments in systems, processes, and AI raised near-term costs and extended sales productivity.

Will CreditRiskMonitor (CRMZ) invest further and when are benefits expected?

The company plans further transformation investments over the next 12–24 months, funded internally and from cash reserves. According to CreditRiskMonitor.com, significant productivity gains are expected to translate into improved margins beginning in 2027.

Did CreditRiskMonitor (CRMZ) achieve any security or compliance milestones in 2025?

Yes, CreditRiskMonitor achieved SOC2 Type 1 certification in 2025, signaling improved controls for enterprise clients. According to CreditRiskMonitor.com, this milestone supports deeper integration with large customers and a path toward Type 2.