Eddy Smart Home Solutions Ltd. Announces Q2/2025 Financial Results

Rhea-AI Summary

Eddy Smart Home Solutions Ltd. (TSXV: EDY) has released its Q2 2025 financial results, showcasing significant growth in multiple areas. The company reported a 43% increase in Q2 revenue to $1.07 million, compared to $747,548 in Q2 2024. In-building devices grew by 24% year-over-year to 120,804 units.

The company maintains a robust contracted future revenue backlog of $38.0 million with an average contract duration of 8.2 years. Recurring billings for Q2 2025 reached $934,628, up 36% year-over-year, while the net loss improved to ($1.01 million) from ($1.31 million) in Q2 2024. The basic and diluted loss per share decreased significantly to ($0.17) from ($1.47), partly due to an increase in outstanding shares following a private placement.

Positive

• Revenue increased 43% year-over-year to $1.07M in Q2 2025
• In-building devices grew 24% to 120,804 units
• Strong contracted future revenue backlog of $38.0M
• Recurring billings increased 36% to $934,628 in Q2
• Net loss improved by $300,028 in Q2 2025

Negative

• Company continues to operate at a loss of ($1.01M) in Q2 2025
• Contracted future revenue slightly decreased from $38.6M in December 2024
• Average contract duration decreased from 8.5 to 8.2 years

Toronto, Ontario--(Newsfile Corp. - August 28, 2025) - Eddy Smart Home Solutions Ltd. (TSXV: EDY) ("Eddy" or the "Company") is pleased to announce its financial results for the three and six months ended June 30, 2025.

Q2 2025 Highlights

Growth in In-Building Devices
Eddy increased its number of in-building devices by approximately 24%, from 97,277 as of June 30, 2024, to 120,804 as of June 30, 2025. This growth reflects strong market traction and increasing adoption of Eddy's technology and is expected to contribute to future revenue expansion.

Contracted Future Revenue
Contracted future revenue is the primary measure of the traction we are gaining in the market for our leak protection services. Due to the nature of the new construction development cycle, most business secured during a given quarter will translate into revenue only once construction begins, typically within a few quarters to approximately two years.

A key operating metric that reflects both our progress and the underlying value of our business is the level of contracted future revenue. Consistent with our mission to protect property and empower people with data and control, our contracted sales backlog is robust, standing at approximately $38.0 million as of June 30, 2025 (December 31, 2024 - $38.6 million). This backlog represents contracted future revenue to be recognized over the terms of the respective agreements, which had a weighted average duration of 8.2 years as of June 30, 2025 (December 31, 2024 - 8.5 years).

Revenue
For the three months ended June 30, 2025, revenue increased by $320,637, or 43%, to $1,068,185, compared to $747,548 in the same period of the prior year.

For the six months ended June 30, 2025, revenue increased by $346,332, or 19%, to $2,135,189, compared to $1,788,857 for the same period in 2024.

Recurring Billings
Billings represent the amounts invoiced to customers for monthly monitoring and equipment rentals. For the three months ended June 30, 2025, recurring billings totaled $934,628, an increase of $246,871 compared to $687,757 for the same period in 2024. This equates to average monthly recurring revenue of $311,543, up approximately 36% from $229,252 in the prior year.

For the six months ended June 30, 2025, recurring billings totaled $1,728,000, an increase of $376,826 compared to $1,351,174 for the same period in 2024. This represents average monthly recurring revenue of $288,000, up approximately 28% from $225,196 in the prior year.

Net Loss
Net loss for the three months ended June 30, 2025, improved by $300,028 to ($1,013,186), compared to a net loss of ($1,313,214) in Q2 2024.

Net loss for the six months ended June 30, 2025, improved by $20,890 to ($1,765,143), compared to ($1,786,033) for the same period in 2024. In 2025, the Company increased investment in the recruitment of sales professionals as part of its ongoing efforts to build a strong and scalable sales organization. This initiative aligns with the Company's strategic objective to drive 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 June 30, 2025, was ($0.17), compared to ($1.47) in Q2 2024. The weighted average number of common shares outstanding (basic and diluted) was 6,128,623 in Q2 2025, compared to 895,027 in Q2 2024.

Basic and diluted loss per share for the six months ended June 30, 2025, was ($0.29), compared to ($2.11) for the same period in 2024. The weighted average number of common shares outstanding (basic and diluted) was 6,128,623 for the six months ended June 30, 2025, compared to 895,159 for the same period in 2024.

On June 28, 2024, the Company completed a non-brokered private placement of 5,333,333 post-consolidation common shares. Prior period share amounts have been retrospectively adjusted to reflect the 100:1 share consolidation.

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 June 30, 2025, and 2024, available on Eddy's SEDAR+ profile at www.sedarplus.ca.

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.sedarplus.ca. 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/264405

FAQ

What was Eddy Smart Home Solutions (TSXV: EDY) revenue in Q2 2025?

Eddy Smart Home Solutions reported revenue of $1,068,185 in Q2 2025, representing a 43% increase from $747,548 in Q2 2024.

How many in-building devices does Eddy Smart Home Solutions have as of Q2 2025?

Eddy Smart Home Solutions had 120,804 in-building devices as of June 30, 2025, showing a 24% increase from 97,277 devices in the previous year.

What is Eddy Smart Home Solutions' contracted future revenue backlog?

The company's contracted future revenue backlog stands at $38.0 million as of June 30, 2025, with a weighted average contract duration of 8.2 years.

How much did Eddy Smart Home Solutions' net loss improve in Q2 2025?

The net loss improved by $300,028 to ($1,013,186) in Q2 2025, compared to a net loss of ($1,313,214) in Q2 2024.

What were Eddy Smart Home Solutions' recurring billings in Q2 2025?

Recurring billings totaled $934,628 in Q2 2025, representing a significant increase of $246,871 compared to $687,757 in Q2 2024.