Eddy Smart Home Solutions Ltd. Announces Q1/2025 Financial Results

Rhea-AI Summary

Eddy Smart Home Solutions reported its Q1 2025 financial results, showing mixed performance. The company achieved significant growth in in-building devices, increasing 41% YoY to 117,513 units. Revenue slightly increased to $1.07M compared to $1.04M in Q1 2024. Recurring billings showed strong growth, reaching $898,178, up 34% from $669,233 in the previous year. However, net losses widened to $751,956 from $472,818 in Q1 2024, primarily due to increased investments in sales personnel for U.S. market expansion. The company's basic and diluted loss per share was $0.12, compared to $0.59 in Q1 2024. Notably, Eddy completed a non-brokered private placement of 5,333,333 post-consolidation common shares in June 2024.

Positive

• 41% YoY growth in in-building devices to 117,513 units
• 34% increase in recurring billings to $898,178
• Revenue growth to $1.07M from $1.04M YoY
• Successful completion of private placement strengthening capital structure

Negative

• Net loss increased to $751,956 from $472,818 YoY
• Higher expenses due to sales team expansion
• Minimal revenue growth of just 2.5% YoY despite significant device growth

Toronto, Ontario--(Newsfile Corp. - May 30, 2025) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) ("Eddy" or the "Company") is pleased to announce its financial results for the three months ended March 31, 2025.

Q1 2025 Highlights

Growth in In-Building Devices

Eddy has increased the number of in-building devices by approximately 41%, from 83,416 as of March 31, 2024, to 117,513 as of March 31, 2025. This significant growth is expected to drive additional revenue and highlights the increasing market acceptance of Eddy's technology and significant market traction.

Revenue

For the three months ended March 31, 2025, revenue was $1,067,003 as compared to $1,041,310 reported for Q1/2024.

Recurring Billings

Billings represent the amount billed to customers for monthly monitoring and equipment rentals.

For the three months ended March 31, 2025, the recurring billings amounted to $898,178 (2024 - $669,233), an increase of $228,946 over the comparable quarter. This represents average monthly recurring revenue of $299,393 (2024 - $223,078), an increase of approximately 34%.

Net Loss

Net loss for the three months ended March 31, 2025, was ($751,956), as compared to ($472,818) reported for Q1/2024. During the current quarter, the Company increased expenditures related to the recruitment of sales professionals, as part of its ongoing efforts to build a robust sales organization. This initiative aligns with the Company's strategic objective to support growth and expand its market presence in the United States.

Basic and Diluted Loss Per Share

Basic and diluted loss per share for the three months ended March 31, 2025, was ($0.12) as compared to ($0.59) for Q1/2024.

As at March 31, 2025, 6,128,623 (March 31, 2024 - 795,290) Common Shares were issued and outstanding.

On June 28, 2024, the Company completed a non-brokered private placement of 5,333,333 post-consolidation common shares and the prior period share amounts have been retrospectively adjusted to reflect the (100:1) Share Consolidation. As at December 31, 2024, 6,128,623 Common Shares were issued and outstanding.

About Eddy

Eddy is a leading North American provider and developer of smart water metering products and monitoring services for commercial and residential properties. Eddy's solutions help property owners and developers protect, control, and conserve water usage through advanced sensing devices and behavioral learning software. For more information, visit www.eddysolutions.com.

For further details on the company's financial performance, please review our consolidated financial statements and management's discussion and analysis for the years ended December 31, 2024, and 2023, as well as the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025, and 2024, available on Eddy's SEDAR profile at www.sedar.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current expectations and are based on assumptions and estimates that involve risks and uncertainties. Actual results may differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ are discussed in the company's most recent management's discussion and analysis under "Risks And Uncertainties," available at www.sedar.com. Eddy undertakes no obligation to update these statements, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Mark Silver
Executive Chairman and Chief Executive Officer
Tel: 416.221.8998
Email: ir@eddysolutions.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254076

FAQ

What was Eddy Smart Home Solutions (ESHSF) revenue in Q1 2025?

Eddy Smart Home Solutions reported revenue of $1,067,003 for Q1 2025, compared to $1,041,310 in Q1 2024.

How many in-building devices does Eddy Smart Home Solutions have as of Q1 2025?

As of March 31, 2025, Eddy Smart Home Solutions had 117,513 in-building devices, representing a 41% increase from 83,416 devices in Q1 2024.

What was ESHSF's net loss in Q1 2025?

Eddy Smart Home Solutions reported a net loss of $751,956 in Q1 2025, compared to a net loss of $472,818 in Q1 2024.

What was Eddy Smart Home Solutions' recurring billing revenue in Q1 2025?

Recurring billings for Q1 2025 were $898,178, representing a 34% increase from $669,233 in Q1 2024.

What was ESHSF's earnings per share in Q1 2025?

Eddy Smart Home Solutions reported a basic and diluted loss per share of $0.12 for Q1 2025, compared to $0.59 in Q1 2024.