CreditRiskMonitor Announces First Quarter Results

Rhea-AI Summary

CreditRiskMonitor (OTCQX:CRMZ) reported its Q1 2025 financial results, showing modest growth with revenues of $4.9 million, up 1% year-over-year. The company's operating income increased by $61,000 to reach $25,000, while net income grew 25% to $159,000. CEO Mike Flum highlighted plans to improve team efficiency through AI implementation and new hires, despite expectations of higher short-term expenses. The company noted increased product demonstration demand amid rising bankruptcy rates and global trade disruptions, though deal closures are experiencing delays due to market volatility. CreditRiskMonitor provides SaaS subscription products for commercial credit reports and bankruptcy risk analytics, serving nearly 40% of Fortune 1000 companies with their FRISK® and PAYCE® scoring systems.

Positive

• Revenue increased by 1% to $4.9 million in Q1 2025
• Operating income improved by $61,000 to reach $25,000
• Net income grew 25% to $159,000
• Increased demand for product demonstrations due to market conditions
• Strong client base including 40% of Fortune 1000 companies

Negative

• Deal closures experiencing delays due to market volatility
• Expected increase in short-term expenses for new hires and technology
• Subscribers adopting 'wait & see' strategy affecting sales cycle
• Challenging macroeconomic conditions with highest bankruptcy rates since 2010

VALLEY COTTAGE, NY / ACCESS Newswire / May 8, 2025 / CreditRiskMonitor.com, Inc. (OTCQX:CRMZ) reported revenues of $4.9 million, an increase of approximately $63 thousand or 1%, for the first quarter of fiscal 2025 compared to the same period of fiscal 2024. The Company reported operating income of approximately $25 thousand, an increase of approximately $61 thousand, for the first quarter of fiscal 2025 compared to the same period of fiscal 2024. The increase in operating income was primarily driven by decreased expenses related to customer acquisition costs and professional services. The Company reported net income of approximately $159 thousand, an increase of approximately $32 thousand or 25%, for the first quarter of fiscal 2025 compared to the same period of fiscal 2024.

Mike Flum, CEO, said, "We are progressing our plan to achieve higher team efficiency by pursuing new roles and AI processes to debottleneck some of our revenue and marketing motions while also enhancing our data, product, and development initiatives. We expect to have higher expenses in the short term as we onboard these new people and technologies, but they will provide a great foundation for long-term efficiency gains.

From the macroeconomic perspective, companies are going bankrupt at the fastest rate since 2010 and trade tensions, tariffs, as well as rising nationalist tendencies portend ongoing global trade disruptions. Both conditions have increased demand for demonstrations of our products but are also delaying the closing deals as subscribers and prospects apply a 'wait & see' strategy in this highly volatile economic and political environment. We continue to review and tinker with product improvements and new pricing strategies to combat this slowdown, but we are confident that financial risk solutions will become more necessary as the aforementioned conditions extend and businesses are forced to respond accordingly."

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, 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) Q1 2025 earnings results?

CreditRiskMonitor reported Q1 2025 revenues of $4.9 million (up 1% YoY), operating income of $25,000 (up $61,000), and net income of $159,000 (up 25% YoY).

How is CRMZ planning to improve efficiency in 2025?

CRMZ is implementing AI processes and hiring new roles to improve team efficiency, focusing on revenue, marketing, data, product, and development initiatives.

What challenges is CreditRiskMonitor (CRMZ) facing in 2025?

CRMZ is facing delayed deal closures due to market volatility, higher short-term expenses, and customers adopting a 'wait & see' approach amid rising bankruptcy rates.

What percentage of Fortune 1000 companies use CreditRiskMonitor's services?

Nearly 40% of Fortune 1000 companies use CreditRiskMonitor's SaaS subscription products for analyzing commercial financial risk.

What is the size of CreditRiskMonitor's Trade Contributor Program?

The Trade Contributor Program processes approximately $3 trillion in annualized trade credit transaction data.