DIGITAL ALLY, INC. ANNOUNCES FIRST QUARTER OPERATING RESULTS
- Net income improved dramatically to $4.3 million ($1.41 per share) from a loss of $3.9 million
- Gross profit margin expanded to 35.8% from 27.6% year-over-year
- SG&A expenses reduced by 50.1% from previous year
- $14.3 million public equity offering improved liquidity
- Stockholders' equity improved to $11.6 million from a deficit of $9 million
- Revenue decreased 19% to $4.4 million compared to Q1 2024
- Still operating at a loss of $974,680 despite improvements
- Challenging economic environment affecting government budgets and law enforcement customers
- Company still needs to regain compliance with Nasdaq's minimum $1.00 bid price requirement
Insights
Digital Ally achieved remarkable financial turnaround with $1.41 EPS despite revenue decline through cost-cutting and restructuring, though sustainability remains uncertain.
Digital Ally's Q1 2025 results represent a remarkable financial turnaround despite a
The profitability turnaround was primarily driven by operating leverage and non-operating gains. While the company still reported an operating loss of
Balance sheet improvements are equally impressive, with working capital turning positive at
However, investors should carefully consider the sustainability of these results. The significant non-operating gains that drove profitability may not recur. The
Management's focus on subscription-based sales and restructuring appears to be showing initial positive results, but a single quarter of improvement—heavily influenced by non-operating items—should be viewed with caution until a trend of sustainable operational profitability is established.
COMPANY REPORTS EARNINGS PER SHARE OF
Overland Park, KS, May 21, 2025 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”), which develops, manufactures, and markets advanced video recording products and other critical safety products for a growing variety of industries and organizational functions, including law enforcement, emergency management, fleet safety and event security, today announced that it has filed its Quarterly Report on Form 10-Q for the three months ended March 31, 2025 with the SEC. The Form 10-Q reflects significant improvements in gross profit, operating income (loss), and net income attributable to common stockholders in the first quarter of 2025 when compared with the prior-year period.
First Quarter Highlights:
- Total revenue decreased
19% to$4.4 million , compared with total revenue of$5.5 million in the first quarter of 2024. - Gross profit margin expanded to
35.8% of revenue vs.27.6% in prior-year period. - Selling, general and administrative expenses declined
50.1% from year-earlier levels. - The Company reported an operating loss of
$974,680 , which represented an improvement of$2,664,354 or73.2% when compared with the first quarter of 2024. - The Company reported non-operating gains of
$5,241,762 , which represented an improvement of$5,545,996 when compared with the first quarter of 2024. - Net income attributable to common stockholders improved to
$4,263,471 , or$1.41 per diluted share, compared with a year-earlier net loss of ($3,931,020) , or ($27.48) per share. - Total working capital improved to a positive
$3,385,051 as of March 31, 2025, as compared to a deficit of$(19,377,507) as of December 31, 2024. - Total stockholders’ equity improved to
$11,569,375 as of March 31, 2025, as compared to a deficit of$(9,013,430) as of December 31, 2024.
“Our first quarter financial results, which included substantial non-operating gains and losses, clearly reflect the operating leverage inherent in our business model that has resulted from substantial decreases in overhead expenses, reduced headcount, and the focus on our subscription based sales model for our video solutions segment and the successful restructuring of our law enforcement products sales organization,” stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc. “Improved gross profit margins and a lower SG&A expense ratio allowed the Company to achieve a
“Additionally, we completed a
“We look towards the future with optimism. We anticipate our entertainment segment will improve its revenues and operating profits as we approach our June 26-28, 2025, Country Stampede Music Festival. While we recognize that the market for law enforcement products remains challenging and highly competitive, the steps taken by Digital Ally to reduce costs, streamline supply chain logistics, and incentivize sales efforts have transformed the Company into a lean organization that is capable of responding quickly to changes in our industry. The impressive earnings turnaround that we achieved during the first quarter of 2025 is very encouraging, and I would like to thank all of our employees, vendors, management and directors for the dedicated efforts and hard work that made the achievement of a profitable first quarter possible. We are highly focused upon the restoration of sustainable and growing profitability in order to rebuild shareholder value, and I look forward to reporting upon our results for the balance of the year,” concluded Ross.
About Digital Ally, Inc.
Digital Ally Companies (NASDAQ: DGLY) through its subsidiaries, are engaged in video solution technology, healthcare revenue cycle management, ticket brokering and marketing and event production. Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential, innovation and organizational synergies.
For additional news and information please visit www.digitalally.com
Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today’s date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company’s periodic filings with the U.S. Securities and Exchange Commission, including, without limitation, the risks described in the Company’s 2024 Annual Report on Form 10-K under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.
For Additional Information, Please Contact:
Stanton E. Ross, CEO at (913) 814-7774
FAQ
What was Digital Ally's (DGLY) earnings per share in Q1 2025?
How much did Digital Ally's (DGLY) revenue decrease in Q1 2025?
What was the size of Digital Ally's (DGLY) public equity offering in Q1 2025?
How much did Digital Ally (DGLY) improve its operating loss in Q1 2025?
What is Digital Ally's (DGLY) current status with Nasdaq listing requirements?
