EarthLabs Reports Results for the First Quarter of 2025

Rhea-AI Summary

EarthLabs Inc. (SPOFF) reported its Q1 2025 financial results, showing mixed performance. Advertising revenue grew 12.5% YoY to $1.59 million, while subscription revenue increased 2.4% YoY to $311,092. The company recorded net investment gains of $2.02 million, down from $3.31 million in Q1 2024. Net income decreased to $221,974 ($0.00 per share) from $1.61 million ($0.01 per share) year-over-year. The company maintained a strong liquidity position with total cash, cash equivalents, and investments of $39.4 million. Operating expenses increased to $4.13 million from $3.39 million in the previous year. CEO Denis Laviolette emphasized the company's commitment to disciplined capital allocation and strategic asset management.

Positive

• Advertising revenue grew 12.5% YoY to $1.59 million
• Subscription revenue increased 2.4% YoY to $311,092
• Strong liquidity position with $39.4 million in cash, cash equivalents, and investments
• Net investment gains of $2.02 million from investment portfolio

Negative

• Net income declined significantly to $221,974 from $1.61 million YoY
• Operating expenses increased 21.7% to $4.13 million
• Investment gains decreased 38.9% from $3.31 million in Q1 2024
• Earnings per share dropped from $0.01 to $0.00

• Advertising revenue up 12.5% YoY to $1.59 million following a 172.1% increase in Q4 2024.
• Subscription revenue increased 2.4% YoY, building on the 39.9% growth from Q4 2024.
• Net investment gains of $2.0M from our investment portfolio.
• Ended the quarter with total cash, cash equivalents, and investments of $39.4M.

Toronto, Ontario--(Newsfile Corp. - May 29, 2025) - EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) ("EarthLabs" or the "Company") is pleased to announce the unaudited consolidated financial results for three months ended March 31, 2025 of the Company (the "Financial Results").

Highlights for the three-months period ended March 31, 2025:

• Completed the quarter with total cash and cash equivalents, due from brokers, investments and equity investments of $39,411,069 as compared to $39,234,437 as at December 31, 2024;
• Advertising revenue of $1,592,565 as compared to $1,415,686 for the three months ended March 31, 2024;
• Subscription revenue of $311,092 as compared to $303,873 for the three months ended March 31, 2024;
• Net investment gains of $2,022,093 from our investment portfolio as compared to $3,310,372 for the three months ended March 31, 2024;
• Net income and comprehensive income of $221,974 (basic earnings per share of $0.00) as compared to $1,605,886 (basic earnings per share of $0.01) for the three months ended March 31, 2024.

"In Q1, we delivered solid results that highlight the resilience of our business and the strength of our revenue model," said Denis Laviolette, Executive Chairman and CEO of EarthLabs. "Advertising revenue grew to $1.59 million, and subscription revenue increased to $311K — both reflecting year-over-year growth and continued demand for our platform. We maintained a strong liquidity position with total cash, investments, and equity holdings of $39.4 million, providing us with the flexibility to pursue growth opportunities and invest into core product offerings for our millions of users. We're addressing past investment volatility and remain committed to disciplined capital allocation and strategic asset management. EarthLabs is well-positioned to leverage market opportunities, enhancing long-term shareholder value."

Summary of financial results

The following are selected interim condensed consolidated financial results as at and for the three ended March 31, 2025, with comparatives:

Interim condensed consolidated statements of income and comprehensive income highlights		Three months ended March 31,
		2025			2024
Advertising revenue	$	1,592,565		$	1,415,686
Subscriptions revenue		311,092			303,873
Sales of exploration maps		41,928			64,703
Net investment gains		2,022,093			3,310,372
Other income		400,673			278,246
Operating, general and administrative		(3,235,765	)		(2,633,349	)
Research and development expenses		(859,261	)		(719,786	)
Total expenses		(4,126,764	)		(3,390,246	)
Loss from equity investment		(14,228	)		(14,840	)
Income tax expense		(5,385	)		(361,908	)
Net income and comprehensive income for the period		221,974			1,605,886
Earnings per common share for the period - basic and diluted		0.00			0.01

 

Interim condensed consolidated statements of financial position highlights		March 31, 2025			December 31, 2024
Cash and cash equivalents	$	3,976,295		$	4,122,474
Due from brokers		1,252,705			416,907
Accounts receivable, net of expected credit losses		375,234			519,491
Investments, at fair value		32,413,669			32,912,428
Equity investment		1,768,400			1,782,628
Income tax receivable		262,977			268,362
Right-of-use assets, net		947,779			992,417
Intangible Assets		2,795,333			2,826,438
Goodwill		624,290			624,290
Total assets		44,900,515			44,930,710
Accounts payable and accrued liabilities		1,494,738			1,697,947
Deferred revenue		3,535,499			3,452,044
Total promissory note		739,712			726,458
Total lease liabilities		977,642			1,031,645
Total liabilities		6,839,787			7,105,575
Share capital, contributed surplus, and warrants		52,588,762			52,575,143
Deficit		(14,528,034	)		(14,750,008	)

 

About EarthLabs Inc.

EarthLabs Inc. (TSXV: SPOT) (OTCQX: SPOFF) (FSE: 8EK0) is a mining investment, technology, and media company that aims to provide strategic leverage to the metals and mining sector through investments, royalties and a full suite of data-driven media SaaS tools and services including CEO.CA, The Northern Miner, MINING.COM, Canadian Mining Journal and DigiGeoData.

For further information please contact:

Denis Laviolette
Executive Chairman and CEO
EarthLabs Inc.
Tel: 647-345-7720
Email: investors@earthlabs.com

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

Cautionary Statement on Forward-Looking Information

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements. Often, but not always, these forward looking statements can be identified by the use of words such as "estimate", "estimates", "estimated", "potential", "open", "future", "assumed", "projected", "used", "detailed", "has been", "gain", "upgraded", "offset", "limited", "contained", "reflecting", "containing", "remaining", "to be", "periodically", or statements that events, "could" or "should" occur or be achieved and similar expressions, including negative variations.

Forward-looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, risks detailed from time to time in the Company's filings with securities regulators and available under the Company's profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253720

FAQ

What were EarthLabs (SPOFF) key financial results for Q1 2025?

In Q1 2025, EarthLabs reported advertising revenue of $1.59M (up 12.5% YoY), subscription revenue of $311K (up 2.4% YoY), and net income of $222K ($0.00 per share). The company maintained $39.4M in total cash and investments.

How much did EarthLabs' (SPOFF) advertising revenue grow in Q1 2025?

EarthLabs' advertising revenue grew 12.5% year-over-year to $1.59 million in Q1 2025, following a 172.1% increase in Q4 2024.

What was EarthLabs' (SPOFF) net income for Q1 2025 compared to Q1 2024?

EarthLabs' net income decreased to $221,974 ($0.00 per share) in Q1 2025, compared to $1,605,886 ($0.01 per share) in Q1 2024.

How much cash and investments did EarthLabs (SPOFF) have at the end of Q1 2025?

EarthLabs ended Q1 2025 with total cash, cash equivalents, and investments of $39.4 million, slightly up from $39.2 million at the end of December 2024.

What were EarthLabs' (SPOFF) investment gains in Q1 2025?

EarthLabs reported net investment gains of $2.02 million in Q1 2025, down from $3.31 million in Q1 2024.