MIND CTI Reports Third Quarter 2025 Results

Rhea-AI Summary

MIND CTI (NasdaqGM:MNDO) reported Q3 2025 results for the quarter ended September 30, 2025, with revenues of $4.8M, operating income of $0.6M, and net income of $0.7M ($0.03 per share). Cash flow from operations was $1.2M and cash on hand was $12.5M as of September 30, 2025.

For the nine months ended Sept 30, 2025, revenues were $14.6M, operating income $1.3M, and net income $1.7M ($0.08 per share). Revenue mix: Europe 59% (Germany messaging 36%), Americas 35%, rest of world 6%. Revenue by product: customer care and billing 47%, messaging 36%, call accounting 17%.

The Board approved a share repurchase program to buy up to $2.4M of ordinary shares, replacing the prior annual dividend policy. The company also reported multiple follow-on orders and a major infrastructure upgrade from an existing customer.

Positive

• Board approved share repurchase up to $2.4M
• Cash balance of $12.5M as of Sept 30, 2025
• Q3 operating cash flow of $1.2M, up from $1.0M YoY
• Multiple follow-on orders including a major infrastructure upgrade

Negative

• Nine-month operating income down from $3.1M to $1.3M
• Nine-month net income declined from $3.4M to $1.7M

Insights

Equity Analyst

Q3 shows modest profitability with declining top-line but strong cash and a new share repurchase policy.

MIND C.T.I. generates most revenue from services and maintenance, which sustained operating profitability despite lower sales. Revenues fell to $4.8 million in Q3 from $5.2 million year‑over‑year, operating income declined to $0.6 million, and net income fell to $0.7 million ($0.03 per share). Cash flow remained positive at $1.2 million and the cash balance was $12.5 million as of September 30, 2025.

Key dependencies and risks include continued customer follow‑on orders and market conditions that the CEO called challenging. Revenue concentration in Europe (about 59% of Q3) and reliance on maintenance/services (96%) increase exposure to renewals and a small set of customers. The buyback authorization of up to $2.4 million signals board confidence in the balance sheet but depends on market conditions and may be paused.

Watch near term metrics: quarterly revenue and renewal rates, follow‑on order cadence, and actual repurchase activity. Expect clear signals within the next 1–4 quarters as follow‑on orders and buyback execution reveal whether the company can reverse the revenue decline while maintaining margins.

* Board of Directors Approves Buyback Program

YOQNEAM, Israel, Nov. 12, 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 third quarter ended September 30, 2025.

The following will summarize our major achievements in the third quarter of 2025, as well as our business. Full 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.

Q3 2025 Financial Highlights

• Revenues were $4.8 million, compared with $5.2 million in the third quarter of 2024.
• Operating income was $0.6 million, compared to $0.7 million in the third quarter of 2024.
• Net income was $0.7 million, or $0.03 per share, compared to $0.9 million, or $0.05 per share in the third quarter of 2024.
• Cash flow from operating activities was $1.2 million, compared with $1.0 million in the third quarter of 2024.
• Multiple follow-on orders.
• Cash position was $12.5 million as of September 30, 2025.

Nine Months Financial Highlights

• Revenues were $14.6 million, compared with $16.2 million in the first nine months of 2024.
• Operating income was $1.3 million, compared to $3.1 million in the first nine months of 2024.
• Net income was $1.7 million, or $0.08 per share, compared to $3.4 million, or $0.17 per share in the first nine months of 2024.
• Cash flow from operating activities in the first nine months of 2025 was $2.8 million, compared to $3.8 million in the first nine months of 2024.

Ariel Glassner, MIND CTI’s Chief Executive Officer, commented: “In the third quarter, we successfully delivered a significant extension of our solution to an existing customer, demonstrating our ability to execute on time and within budget. We remain focused on advancing our technology roadmap – including 5G, cloud, AI technologies - and strengthening our operational foundation.

While the near-term environment remains challenging, I am confident that our consistent efforts will position MIND for potential growth, once market conditions improve. Our commitment to innovation, operational excellence, and customer trust remains unwavering.”

Revenue Distribution for Q3 2025
Revenues in Europe represented 59% (including the messaging segment revenues in Germany that represented 36%), the Americas represented 35%, and the rest of the world represented 6% of total revenues.

Revenues from our Customer care and billing software were $2.3 million, or 47% of total revenues, enterprise messaging were $1.7 million, or 36% of total revenues, and enterprise call accounting software were $0.8 million, or 17% of total revenues.

Revenues from maintenance and additional services were $4.7 million, or 96% of total revenues, while licenses were $0.1 million, or 4% of total revenues.

Revenue Distribution for Nine Months 2025
Revenues in Europe represented 60% (including the messaging segment revenues in Germany that represented 36%), the Americas represented 33%, and the rest of the world represented 7% of total revenues.

Revenues from our Customer care and billing software were $7.0 million, or 48% of total revenues, enterprise messaging were $5.3 million, or 36% of total revenues, and enterprise call accounting software were $2.3 million, or 16% of total revenues.

Revenues from maintenance and additional services were $14.0 million, or 96% of total revenues, while licenses were $0.6 million, or 4% of total revenues.

Follow-on Orders
Our customers continue to rely on our solutions and expand their use of our technology. This quarter, we received follow-on orders from existing customers for additional functionality and system enhancements including a major infrastructure upgrade from an existing long-term customer, reflecting their ongoing confidence in our platform.

MIND’s Board of Directors Approves Plan to Repurchase Up to $2.4 Million of Outstanding Ordinary Shares
MIND today announced that its Board of Directors approved a change to the Company’s capital return policy for the current period, transitioning from its prior annual dividend to a share repurchase program.

The Board’s resolution reflects a continued commitment to disciplined capital allocation and shareholder value creation. Given MIND’s cash generation and solid balance sheet, the Board believes that the buyback can be done without sacrificing expansion and growth plans. We believe that at this time, the repurchase of our shares will deliver value to our shareholders and is one of the most appropriate uses of our resources.

Under the repurchase program in an amount in cash of up to $2.4 million, share purchases may be made from time to time depending on market conditions, share price, trading volume and other factors. The repurchase may be suspended from time to time or discontinued.

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 (MNDO) Q3 2025 revenue and net income figures?

Q3 2025 revenue was $4.8M and net income was $0.7M ($0.03 per share).

How much cash did MIND CTI (MNDO) have on Sept 30, 2025?

MIND CTI held $12.5M in cash as of September 30, 2025.

What is the size and purpose of MNDO's approved buyback program?

The Board approved repurchases of up to $2.4M of ordinary shares to return capital and replace the prior dividend policy.

How did MNDO's revenues distribute by region in Q3 2025?

Q3 2025 revenues: Europe 59% (Germany messaging 36%), Americas 35%, rest of world 6%.

Which product lines drove MNDO's Q3 2025 revenue mix?

Q3 revenue by product: Customer care and billing 47%, messaging 36%, call accounting 17%.

Did MNDO report commercial traction in Q3 2025?

Yes; the company reported multiple follow-on orders and a major infrastructure upgrade from an existing long-term customer.