Fiscal Year 2025 Key Highlights
Record revenue: $35.8 million, a 58% increase from $22.7 million in fiscal year 2024.
Gross profit inflection: $11.5 million, a 93% increase year-over-year; gross margin expanded to 32% from 26%.
Margin Expansion: Gross margin expanded 570 basis points to 32%, driven by a higher-margin software and service mix.
Balance Sheet Turnaround: Improved stockholders' equity by $25.4 million, shifting from a ($23.8) million deficit to a positive $1.6 million.
Total assets growth: 183% to $36.2 million from $12.8 million.
Operational Efficiency: Net loss improved 29% to ($16.1) million, reflecting disciplined SG&A management and portfolio rationalization.
Strategic & AI Catalysts
Keen Labs AI Launch: Formed a wholly owned subsidiary processing 30GB+ of daily operational data from 130,000+ connected assets to power predictive maintenance and Virtual Power Plant (VPP) models.
National Exchange Uplisting: Filed an S-1 registration statement for a firm commitment public offering with ThinkEquity as sole book-runner, a key step in unlocking institutional liquidity.
Battery IP Acquisition: Completed the purchase of Amperics, acquiring Hi-C™ (defense/data centers) and Hi-E™ (residential VPP) battery technology.
Portfolio Rationalization: Divested three lower-margin home service businesses (ATS, SESB, GEG) to concentrate resources on high-multiple AI and infrastructure segments.
Management Commentary
"Fiscal year 2025 was a transformational year for ConnectM," said Bhaskar Panigrahi, Chairman and CEO. "We delivered 58% revenue growth, nearly doubled our gross profit, and executed a $25.4 million stockholders' equity turnaround, all while completing strategic acquisitions, launching Keen Labs as our AI innovation engine, and filing our S-1 for a national exchange uplisting. The SPAC overhang is behind us. Capital is now a growth tool, not a survival tool."
"With our Hi-C and Hi-E battery technology, our 130,000+ connected asset network, and our expanding energy intelligence platform, ConnectM is positioned at the intersection of electrification, artificial intelligence, and energy storage, three of the highest-growth sectors in the market today. We are actively streamlining our portfolio to concentrate on our highest-margin, highest-multiple business lines, which we expect to drive meaningful SG&A improvement and accelerate our path to profitability. We are targeting $75 million revenue and positive EBITDA generation for fiscal 2026," added Panigrahi.
Fiscal Year 2025 Financial Summary
(in thousands, except per share data)
FY2025
FY2024
Change
Revenue
$35,837
$22,653
+58%
Cost of Revenue
$24,371
$16,706
+46%
Gross Profit
$11,466
$5,947
+93%
Gross Margin
32.0%
26.3%
+570bps
SG&A Expenses
$23,503
