MIND CTI Reports Second Quarter 2025 Results

Rhea-AI Summary

MIND CTI (NASDAQ:MNDO) reported challenging Q2 2025 results, with revenues declining to $4.8 million from $5.3 million in Q2 2024. Operating income decreased significantly to $0.3 million (6% of revenues) from $1.1 million (20%) year-over-year.

The company's net income dropped to $0.05 per share in H1 2025 from $0.12 in H1 2024. Notable events include the completion of the Aurenz acquisition in Q1 2025 with $1.7 million paid in cash, and a $0.22 per share dividend distribution totaling $4.5 million in April 2025.

Revenue distribution showed Europe representing 60% of total revenues, with billing software contributing 47%, enterprise messaging 38%, and call accounting 15%. The company maintains a cash position of $11.4 million as of June 30, 2025.

Positive

• Maintained strong cash position of $11.4 million
• Distributed $0.22 per share dividend totaling $4.5 million
• Successfully completed Aurenz acquisition
• Maintained high recurring revenue with 94% from maintenance and services

Negative

• Revenue declined 9.4% to $4.8 million in Q2 2025
• Operating income dropped 73% to $0.3 million
• Net income decreased 55% to $0.5 million
• Operating margin declined from 20% to 6% year-over-year
• Facing challenges from shrinking markets and strong competition

Insights

Financial Analyst

MIND CTI reports concerning revenue decline and significant operating income drop amid market challenges, though maintaining strong cash position.

MIND CTI's Q2 2025 results reveal a concerning 9.4% year-over-year revenue decline to $4.8 million from $5.3 million in Q2 2024. More alarming is the dramatic drop in operating income, which fell 72.7% to $0.3 million (representing just 6% of revenues compared to 20% a year earlier). Net income decreased by 54.5% to $0.5 million, with earnings per share falling to $0.02 from $0.06.

The six-month figures mirror this downward trend with revenue declining 11.8% to $9.7 million and operating income plummeting 73.9% to $0.6 million. The company's operating margin has collapsed from 21% to just 7% year-over-year.

Cash flow generation has also weakened significantly, with operating cash flow decreasing 55% to $0.9 million for the quarter and 44.8% to $1.6 million for the six-month period. The company's cash position stands at $11.4 million, down from $14.6 million a year ago, partly due to the Aurenz acquisition ($1.7 million paid) and a substantial dividend distribution of $4.5 million ($0.22 per share).

Revenue breakdown shows heavy dependence on maintenance and services at 94% of total revenue, with license revenue representing just 6%. Geographically, Europe dominates with 60% of revenue (including 38% from messaging in Germany), followed by the Americas at 30%.

The CEO's acknowledgment of "shrinking relevant markets and strong competition" explains the performance decline. While the company is monitoring costs for efficiency, the absence of specific growth initiatives or new product developments is concerning in light of these results.

YOQNEAM, Israel, Aug. 11, 2025 (GLOBE NEWSWIRE) -- MIND C.T.I. LTD. – (NasdaqGM:MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product-based solutions for service providers, unified communications (UC) analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its second quarter ended June 30, 2025.

The following will summarize our major developments in the second quarter of 2025 as well as our business. The financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.

Financial Highlights

• Revenues were $4.8 million, compared with $5.3 million in the second quarter of 2024, with the decrease mainly attributed to the billing segment.
• Operating income was $0.3 million, or 6% of total revenues, compared with $1.1 million, or 20% of total revenues in the second quarter of 2024.
• Net income was $0.5 million, or $0.02 per share, compared with $1.1 million, or $0.06 per share in the second quarter of 2024.
• Cash flow from operating activities was $0.9 million, compared with $2.0 million in the second quarter of 2024.

Six Months Financial Highlights

• Revenues were $9.7 million, compared with $11.0 million in the first six months of 2024.
• Operating income of $0.6 million, or 7% of total revenues, compared with $2.3 million or 21% of total revenues in the first six months of 2024.
• Net income of $1.0 million, or $0.05 per share, compared with $2.5 million, or $0.12 per share in the first six months of 2024.
• Cash flow from operating activities in the first six months of 2025 was $1.6 million, compared with $2.9 million in the first six months of 2024.

Ariel Glassner, MIND CTI’s CEO, commented: “We continue to be challenged by shrinking relevant markets and strong competition in both our billing and enterprise solutions, as previously announced, and we are experiencing the negative impact on our financial results. We continuously monitor our cost structure, striving for efficiency across the organization. At the same time, we continue to invest in key areas to address market needs and to maintain a strong engineering team to support our customers. We believe that continued focus on execution and adaptability, along with maintaining our growth drivers, positions us well for the future.”

Cash Position
Our cash position, including short-term deposits and marketable securities, was $11.4 million as of June 30, 2025, compared with $14.6 million as of June 30, 2024. As previously announced, in Q1 2025 we completed the acquisition of Aurenz and $1.7 million was paid in cash to date.

As previously announced, the Board declared on March 4, 2025, a cash dividend of $0.22 per share before withholding tax. The dividend sum of approximately $4.5 million was distributed in April 2025.

Revenue Distribution for Q2 2025
Revenues in Europe represented 60% (including the messaging segment revenues in Germany, which represented 38%), the Americas represented 30%, and the rest of the world represented 10% of total revenues.

Revenues from our customer care and billing software were $2.2 million, or 47% of total revenues, enterprise messaging and payment solutions were $1.8 million, or 38% of total revenues and enterprise call accounting software were $0.7 million (including the full quarter revenues of Aurenz), or 15% of total revenues.

Revenues from maintenance and additional services were $4.5 million, or 94% of total revenues, while licenses were $0.3 million, or 6% of total revenues.

Revenue Distribution for the First Six Months of 2025
Revenues in Europe represented 61% (including the messaging segment revenues in Germany, which represented 36%), the Americas represented 32%, and the rest of the world represented 7% of total revenues.

Revenues from our customer care and billing software were $4.7 million, or 49% of total revenues, enterprise messaging and payment solutions were $3.5 million, or 36% of total revenues and enterprise call accounting software were $1.5 million (including the full first six months revenues of Aurenz), or 15% of total revenues.

Revenues from maintenance and additional services were $9.3 million, or 95% of total revenues, while licenses were $0.4 million, or 5% of total revenues.

About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements", including estimations relating to the impact of the political situation in Ukraine, expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company's annual report and other filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.

For more information please contact:
Janice Kaye
MIND C.T.I. Ltd.
Tel: +972-4-993-6666
investor@mindcti.com

FAQ

What were MIND CTI's (MNDO) Q2 2025 earnings results?

MIND CTI reported Q2 2025 revenues of $4.8 million, operating income of $0.3 million, and net income of $0.5 million ($0.02 per share), showing declines from Q2 2024.

How much dividend did MIND CTI pay in 2025?

MIND CTI distributed a cash dividend of $0.22 per share in April 2025, totaling approximately $4.5 million.

What is MIND CTI's current cash position in 2025?

As of June 30, 2025, MIND CTI's cash position, including short-term deposits and marketable securities, was $11.4 million, compared to $14.6 million the previous year.

How is MIND CTI's revenue distributed geographically?

In Q2 2025, 60% of revenues came from Europe (including 38% from messaging in Germany), 30% from the Americas, and 10% from the rest of the world.

What were the main challenges MIND CTI faced in Q2 2025?

MIND CTI faced challenges from shrinking relevant markets and strong competition in both billing and enterprise solutions, leading to negative impacts on financial results.