Wishpond Returns to Positive Adjusted EBITDA and Achieves Highest Gross Margins Since 2020
Rhea-AI Summary
Wishpond (OTCQX: WPNDF) reported Q3 2025 results showing a return to positive Adjusted EBITDA of $49,012 and a 71% gross margin, the highest since Q3 2020. Revenue for the quarter was $3,375,653 (Q3-2024: $5,055,738), reflecting a strategic shift toward AI-enabled products and away from legacy low-margin customers.
Material actions include multiple AI patent filings (seven total by Sep 4, 2025), renewal of a revolving facility (max $5.0M) with revised covenant terms, a proposed SalesCloser spin-off via an LOI announced Nov 4, 2025, a lender forbearance extension intent to Dec 2026, and a $200,000 shareholder loan on Nov 25, 2025.
Positive
- Adjusted EBITDA returned to positive at $49,012 in Q3 2025
- Gross margin improved to 71% in Q3 2025, highest since Q3 2020
- Seven patent applications filed for SalesCloser AI by Sep 4, 2025
- Revolving credit facility renewed to a $5.0M maximum on Aug 26, 2025
- Received lender intent to extend forbearance to Dec 2026
- Secured a $200,000 shareholder loan on Nov 25, 2025
Negative
- Quarterly revenue declined to $3.38M in Q3 2025 from $5.06M in Q3 2024
- Adjusted EBITDA fell from $571,228 (Q3 2024) to $49,012 (Q3 2025)
- Borrowing capacity reduced at facility renewal, causing covenant non-compliance on Aug 26, 2025
- Management notes a material uncertainty about going concern despite forbearance intent
- Nine-month Adjusted EBITDA was a loss of $356,476
Key Figures
Market Reality Check
Peers on Argus
WPNDF is up 6.23% while key peers show mixed moves: AICOF -19.23%, POSAF -12.5%, RDAR +16.67%, others flat to modestly down. The move appears company-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Sep 04 | AI patent filings | Positive | -10.4% | Three new AI sales automation patent applications expanding SalesCloser platform. |
| Aug 26 | Quarterly earnings | Negative | -6.7% | Q2-2025 revenue decline, negative Adjusted EBITDA, and covenant issues on credit facility. |
| Aug 21 | Patent portfolio expansion | Positive | -6.7% | Fourth patent filing for self-testing technology in AI-driven marketing solutions. |
Positive AI/patent news previously coincided with negative price moves, while weaker earnings aligned with a decline, suggesting a pattern of selling into innovation updates.
Over recent months, Wishpond has emphasized its transition to AI-driven sales and marketing. On Aug 21, 2025, it advanced its IP with a self-testing patent for AI agents. On Aug 26, 2025, Q2-2025 results showed revenue decline and negative Adjusted EBITDA during this transition. On Sep 4, 2025, three additional AI automation patent filings expanded the SalesCloser platform. Today’s Q3-2025 update adds improved gross margins and a return to positive Adjusted EBITDA alongside ongoing liquidity and credit facility considerations.
Market Pulse Summary
This announcement highlights Wishpond’s Q3-2025 shift back to positive Adjusted EBITDA of $49,012 and a stronger gross margin of 71%, while revenue declined to $3.38M as the company pivots toward AI-focused offerings. Liquidity remains a key risk, with cash at $501,012, a larger credit facility balance, and disclosed going-concern uncertainty. Investors may watch progress on the proposed SalesCloser spin-out, asset sales, lender forbearance extension, and trends in recurring revenue and margins.
Key Terms
adjusted EBITDA financial
MRR financial
revolving operating line financial
credit facility financial
forbearance period financial
going concern financial
convertible promissory notes financial
non-provisional utility patent regulatory
AI-generated analysis. Not financial advice.
- The Company returned to positive Adjusted EBITDA in Q3 2025, generating
$49,012 - Wishpond achieved gross margins of
71% in Q3 2025, the Company's highest gross margin percentage since Q3 2020, reflecting improved product mix and operational efficiencies.
Ali Tajskandar, Wishpond's Founder and CEO commented, "Q3 marked an important step forward in our transition into an AI-focused company. We returned to positive Adjusted EBITDA(1) and delivered our highest gross margin percentage since 2020, reflecting the progress we are making in shifting our business toward more profitable revenue streams. SalesCloser continues to gain traction as what we believe is one of the most advanced AI sales platforms in the market, and we are deepening its impact both externally with customers and internally across our own sales processes."
Ali Tajskandar further adds, "We also strengthened our innovation pipeline this quarter with several new patent application filings that advance the reliability, automation, and intelligence of our virtual AI agents. In addition, the proposed SalesCloser spin-off is a strategic step that we believe will allow both businesses to operate with greater focus, access dedicated funding, and unlock the ability to reinvest more aggressively into the growth of Wishpond's core marketing technology platform. While we continue to operate in a challenging environment, our strategy of building AI-focused products, optimizing our cost structure, and improving our financial flexibility positions us well for the next phase of growth."
Adrian Lim, Wishpond's Chief Financial Officer commented, "In Q3 we delivered a return to positive Adjusted EBITDA(1) of
Adrian Lim further adds, "We remained focused on liquidity and financial discipline during the quarter and subsequent to quarter-end, including securing additional shareholder funding and working closely with our lender on the extension of our forbearance period. While there is still work ahead, we believe that our improved margins, lower cost structure, and ongoing liquidity initiatives provide a stronger financial foundation as we work towards achieving sustained growth and profitability."
Third Quarter 2025 Financial Highlights:
- Wishpond achieved quarterly revenue of
$3,375,653 $5,055,738 - Wishpond achieved gross profit of
$2,400,784 $3,490,107 - Wishpond achieved a gross margin percentage of
71% during Q3-2025 (Q3-2024:69% ). The Company's highest gross margin percentage since Q3-2020. - During Q3-2025, Wishpond reported positive Adjusted EBITDA(1) of
$49,012 $571,228
Third Quarter 2025 Business Highlights:
- On August 21, 2025, the Company announced that it filed a non-provisional utility patent application, entitled 'Self-Testing in a Virtual AI Representative', which enables a virtual AI agent to undergo rigorous pre-engagement simulations before interacting with real users. This innovation in self-testing technology represents a significant step forward in AI reliability, ensuring seamless and accurate interactions with users from the outset. This marks the fourth patent application Wishpond has filed, underscoring the Company's commitment to innovation in AI-driven sales and marketing automation.
- On August 26, 2025, the Company successfully renewed its revolving operating line with National Bank of Canada with a maximum limit of
$5 million - On September 4, 2025, the Company announced that it filed three new non-provisional utility patent applications in connection with its AI-enabled sales platform, SalesCloser. These three filings bring Wishpond's total patent applications to seven, reinforcing the Company's commitment to advancing autonomous, human-like AI sales agents that deliver higher reliability, productivity and conversion outcomes. The three patent applications consisted of the following:
- A Conversational AI Assistant for Dynamic Agent Sequence Building, which enables users to design and manage AI voice agents via a chat-based workflow builder that accepts uploads, provides visual layouts, revision history and simulation mode to accelerate deployment.
- Adaptive Voicemail and IVR Detection for AI-Driven Call Automation, which empowers outbound AI agents to detect live humans, voicemail or IVR menus in real time, and then choose whether to deliver a message, disconnect or navigate to a human, improving call-campaign efficiency.
- An AI-Driven Conversational Appointment Scheduling System, which allows the AI agent to connect with calendar systems during live conversation, propose and confirm times, handle rescheduling, thereby eliminate scheduling friction and shorten sales cycles.
Business Highlights Subsequent to September 30, 2025:
- On November 4, 2025, the Company entered into a non-binding letter of intent with G2M Cap Corp. and 1560320 B.C. Ltd. (doing business as SalesCloser) regarding a proposed reverse takeover transaction (the "Proposed Transaction"). If completed, SalesCloser would become the primary business of a new publicly listed entity (the "Resulting Issuer"), and Wishpond would receive 22,750,000 shares in the capital of the Resulting Issuer ("Resulting Issuer Shares") at a deemed value of
$0.75 68% at closing of the Proposed Transaction. The Proposed Transaction is intended to reduce competing resource demands, improve Wishpond's cash flow, and allow the Resulting Issuer to pursue dedicated funding as an independent entity. Completion of the Proposed Transaction remains subject to the negotiation of a definitive agreement, completion of related financings, shareholder approvals, exchange approval, lender consent, and other customary conditions. In connection with the Proposed Transaction, SalesCloser commenced a bridge financing (the "Bridge Financing") of unsecured, non-interest-bearing convertible promissory notes expected to convert at$0.60 - On November 21, 2025, the Company signed a non-binding letter of intent (the "LOI") with an arm's-length third party regarding a potential sale of certain assets of the Viral Loops business. The LOI is subject to due diligence, negotiation of a definitive agreement, and receipt of all required consents and approvals.
- On November 24, 2025, the Company received confirmation from its senior lender of its intention to extend the existing forbearance period and covenant cure timeline to the end of December 2026. The Company and its lender are continuing to work toward finalizing an updated forbearance and reservation of rights letter. The final terms and conditions of the extension remain subject to the lender's internal processes. There is no certainty that the parties will enter into an updated forbearance and reservation of rights Letter, and the lender is under no obligation to do so. Management expects that the extension, if and once finalized, will provide additional time to continue executing its liquidity plan, including disciplined cost management and the evaluation of financing and strategic alternatives to improve financial flexibility. These conditions represent a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
- On November 25, 2025, the Company entered into a loan agreement with Malek Holdings Ltd. (the "Loan"), a significant shareholder of the Company, for proceeds of
$200,000 2.0% per annum, with a maturity date of 12 months from the effective date of the Loan (the "Maturity Date"). The Loan will become repayable upon the earlier of a qualifying divestiture generating at least$1,000,000
Outlook:
For 2025, Wishpond's focus has been on improving profitability, strengthening its core marketing technology platform, and advancing the transition of its product suite toward higher-value, AI-focused solutions. The Company has also made progress in streamlining its operations, improving gross margins, and enhancing the efficiency of its internal processes.
Subsequent to quarter-end, the Company announced a proposed spin-out transaction involving SalesCloser, as described in the subsequent events section above. Regardless of whether the Proposed Transaction is completed, Wishpond remains focused on enhancing its core platform, supporting the performance of its existing product suite, and driving sustainable improvements in margins and financial flexibility. Management continues to prioritize disciplined cost management, targeted innovation, and initiatives intended to position the Company for future growth.
Management's key goals for 2025 are as follows:
- Accelerate organic revenue growth and increase Monthly Recurring Revenue ("MRR")(1).
- Increase utilization of SalesCloser in internal sales processes to drive sales of Wishpond's own products.
- Accelerate revenue growth of Wishpond and SalesCloser to external customers.
- Improve margins, decrease churn and increase long-term customer value.
Selected Financial Highlights:
The tables below set out selected financial information relating to Wishpond and should be read in conjunction with the Interim Financial Statements and MD&A, copies of which can be found under Wishpond's profile on SEDAR+ at www.sedarplus.ca.
Three-months ended September 30, 2025 $ | Three-months ended September 30, 2024 | Nine-months ended September 30, 2025 | Nine-months ended September 30, 2024 | |
Revenue | 3,375,653 | 5,055,738 | 11,175,731 | 16,934,710 |
Gross profit | 2,400,784 | 3,490,107 | 7,653,791 | 11,561,777 |
Gross margin | 71 % | 69 % | 68 % | 68 % |
Adjusted EBITDA(1) | 49,012 | 571,228 | (356,476) | 1,403,142 |
Credit facility - end of period | 2,532,640 | 1,300,535 | 2,532,640 | 1,300,535 |
Cash - end of the period | 501,012 | 1,084,978 | 501,012 | 1,084,978 |
Net decrease in cash during the period net of credit facility | (264,315) | (68,609) | (1,861,956) | (645,484) |
Reconciliation to Adjusted EBITDA(1)
Three-months ended September 30, 2025 $ | Three-months ended September 30, 2024 | Nine-months ended September 30, 2025 | Nine-months ended September 30, 2024 | |
Loss before income taxes | (468,887) | 86,180 | (1,868,055) | (505,046) |
Depreciation and amortization | 422,449 | 411,504 | 1,251,534 | 1,228,151 |
Interest expense | 45,708 | 36,557 | 121,223 | 115,276 |
Other expenses | 122,736 | 107,019 | 204,067 | 259,601 |
Stock based compensation expense | (72,994) | (70,032) | (65,245) | 305,160 |
Adjusted EBITDA(1) | 49,012 | 571,228 | (356,476) | 1,403,142 |
Footnotes:
(1) | Adjusted EBITDA and MRR are not financial measures recognized by International Financial Reporting Standards ("IFRS"), do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. See "Cautionary Statements – Non-GAAP Financial Measures" for more information and definitions of each non-GAAP term used in this press release. |
On Behalf of the Board of Wishpond
"Ali Tajskandar"
Chairman and Chief Executive Officer
About Wishpond Technologies Ltd.
Wishpond is a
Cautionary Statements, Summary Information
Information presented in this press release may be only a summary of all available information and does not purport to be a full representation of all figures, notes and discussions provided for in the Interim Financial Statements and the MD&A. Readers are cautioned to read the entirety of the Interim Financial Statements and the MD&A, and to not rely only on the information presented in this press release. In the event of conflict between the provisions of this press release on the one hand, and the Interim Financial Statements and the MD&A on the other hand, the information in the Interim Financial Statements and the MD&A shall govern.
Non-GAAP Financial Measures
In this press release, Wishpond has used the following terms ("Non-GAAP Financial Measures") that are not defined by IFRS, but are used by management to evaluate the performance of Wishpond and its business, including: Adjusted EBITDA and MRR. These measures may also be used by investors, financial institutions and credit rating agencies to assess Wishpond's performance and ability to service debt. Non-GAAP Financial Measures do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Securities regulations require that Non-GAAP Financial Measures are clearly defined, qualified and reconciled to their most comparable IFRS financial measures. Except as otherwise indicated, these Non-GAAP Financial Measures are calculated and disclosed on a consistent basis from period to period. Specific items may only be relevant in certain periods. See the disclosure under the heading "Additional GAAP and Non-GAAP Measures" in the MD&A for a discussion of Non-GAAP Financial Measures and certain reconciliations to GAAP financial measures. The intent of Non-GAAP Financial Measures is to provide additional useful information to investors and analysts, and the measures do not have any standardized meaning under IFRS. The measures should not, therefore, be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. Other issuers may calculate Non-GAAP Financial Measures differently. Non-GAAP Financial Measures are identified and defined as follows:
- Adjusted EBITDA: Adjusted EBITDA should not be construed as an alternative to net earnings, cash flow from operating activities or other measures of financial results determined in accordance with Generally Accepted Accounting Principles as an indicator of the Company's performance. The Company defines "Adjusted EBITDA" as Income or Loss before income taxes less interest, depreciation and amortization, remeasurement of contingent consideration liability, filing fees, credit facility setup and renewal fees, earn-out remuneration, foreign currency losses (gains), acquisition related expenses, net other expenditures (income), and stock-based compensation. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service future interest and principal debt repayments and fund future growth initiatives.
- Monthly Recurring Revenue: The Company uses Monthly Recurring Revenue, or MRR, as a directional indicator of subscription revenue going forward assuming customers maintain their subscription plan the following month. MRR is the total of all monthly subscription plan fees paid by customers in effect on the last day of that period. If customers pay for more than one month upfront, the amount is divided by the number of months in the subscription period. Discounts are deducted prior to the calculation and one-time payments and metered based charges are excluded.
Forward-Looking Statements
Statements that are not reported financial results or other historical information are forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). This press release includes forward-looking statements regarding the Company, its subsidiaries and the industries in which they operate, including statements about and references to expected results from future operations, future growth of the Company's products and platforms, the future development and increased use of products incorporating artificial intelligence, including SalesCloser, references to the growth of the Company's product portfolio and future profitability, including whether additional products or features may be developed in the future, and the functionality and timing of such products, financial results or operational activities that may be undertaken by the Company, completion of either or both of the LOI and the Proposed Transaction, completion of the Bridge Financing, the ability of the Company to successfully negotiate and enter into an updated forbearance and reservation of rights letter with its senior lender, the ability of the Loan to adequately support the Company's working capital and short-term liquidity requirements, the results of the Company's cost-savings, research and development and other initiatives, expectations around the outcome of applications for any of the Company's patents, any future acquisitions or other activities done to grow the Company both organically or inorganically, expectations, beliefs, plans, future operations, the impact of broader economic factors including inflation and other general economic risks on the Company, business and acquisition strategies, opportunities, objectives, prospects, assumptions, including those related to trends and prospects, and future events and performance. Sentences and phrases containing or modified by words such as "expect", "anticipate", "plan", "continue", "estimate", "intend", "expect", "may", "will", "project", "predict", "potential", "targets", "projects", "is designed to", "strategy", "should", "believe", "contemplate" and similar expressions, and the negative of such expressions, are not historical facts and are intended to identify forward-looking statements. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements in this press release are reasonable and are based on, among other things, the expectations and analysis of current market trends and opportunities of management of the Company, such forward-looking statements have been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including, but not limited to, risks associated with changes to SalesCloser and other product's revenue and profitability, changes to customer preferences, competition, use cases for SalesCloser and other products, economic uncertainty and instability as a result of the ongoing inflation and supply chain issues, higher interest rate climate, tightening of credit availability and recessionary risks, pandemic related risks, wars, tariffs, instability in global commodity and securities markets, shifts in consumer and institutional spending and marketing strategies, risks related to data breaches and privacy, the changing global market and competition for the products and services supplied by the Company, and the additional risk factors discussed in the continuous disclosure materials of the Company which are available under the Company's profile on SEDAR+ at www.sedarplus.ca. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE Wishpond Technologies Ltd.
FAQ
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