PLAINVIEW, N.Y., May 15, 2025 (GLOBE NEWSWIRE) — Vaso Corporation (“Vaso”) (OTCQX: VASO), a leading MedTech company with a diversified business portfolio in network and healthcare IT services, professional sales services, and proprietary medical products, today announced its operating results for the three months ended March 31, 2025.
“The Company recorded record first quarter revenue, with revenue of $19.5 million, an increase of 3.9% when compared to the same quarter of the prior year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Gross profit for the quarter was $11.4 million, up by $440 thousand, or 4.0%, year-over-year, and net loss for the first three months of 2025 narrowed to $1.1 million from $1.2 million for the same period of 2024.”
“Our balance sheet remains strong, with $25.3 million in cash and cash equivalents as of March 31, 2025,” Dr. Ma continued. “Total deferred revenue grew to $35.4 million at the end of first quarter of 2025, an increase of $4.0 million, or 12.7%, from March 31, 2024, and an increase of $510 thousand, or 1.5%, from December 31, 2024.”
“The high deferred revenue in the professional sales service segment and backlogs in the IT and equipment segments provide revenue stability and financial visibility. In addition, we are historically more profitable in the later quarters of the year. Therefore, we remain cautiously optimistic about 2025 despite the recent increased uncertainties in the general business environment,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2025
For the three months ended March 31, 2025, revenue increased by 3.9%, to $19.5 million, compared to $18.7 million for the same period of 2024, due primarily to revenue increases in the IT and professional sales service segments. Revenue in the professional sales service segment was up by $578 thousand, or 7.1%, year-over-year, mainly due to higher product deliveries by our partner during the period. Revenue in our IT segment increased by $162 thousand, or 1.6%, in the first quarter 2025 when compared to the same quarter of 2024, due to higher revenue from network services sales, partially offset by lower healthcare IT sales. Revenue in our equipment segment decreased by $16 thousand, or 3.6%, when compared to the first quarter of 2024, principally due to lower equipment deliveries in our China operations, partially offset by higher ARCS software subscription revenue in the US.
Gross profit for the first quarter of 2025 increased by $440 thousand, or 4.0%, to $11.4 million, compared with a gross profit of $10.9 million for the same quarter of 2024, as a result of higher revenues.
Selling, general and administrative (SG&A) expenses for the first quarter of 2025 increased by $332 thousand, or 2.8%, to $12.4 million, compared to the first quarter of 2024. The increase was primarily attributable to higher personnel costs in the IT and professional sales service segments, partially offset by lower expenses in the equipment segment as well as lower corporate expenses.
Operating loss for the three months ended March 31, 2025 was $1.2 million, compared to operating loss of $1.5 million in the first quarter of 2024. The decrease in loss was due to the higher gross profit, partially offset by higher SG&A expenses as discussed above.
Net loss for the three months ended March 31, 2025 was $1.1 million, compared to net loss of $1.2 million in the first quarter of 2024.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) was negative $1.1 million in the first quarter of 2025 compared to a negative $1.3 million for the first quarter of 2024. The improvement was primarily the result of the narrower net loss. Adjusted EBITDA is a non-GAAP financial measure, as further discussed below.
Net cash used in operating activities was $566 thousand for the first quarter of 2025, an improvement compared to net cash used in operating activities of $1.1 million for the first quarter of 2024. As of May 9, 2025, the Company’s cash and cash equivalents totaled approximately $30.5 million.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinct but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for medical equipment; and design, manufacture, and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
- VasoTechnology, Inc. provides network and IT services through two business units: NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers; and VasoHealthcare IT Corp., a national value added reseller of RIS (radiology Information system), PACS (picture archiving and communication system), and other software solutions from various vendors as well as related services, including implementation, management and support.
- Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE HealthCare diagnostic imaging and ultrasound products in certain market segments in the USA.
- VasoMedical, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company’s overseas assets including China-based subsidiaries.
Additional information is available on the Company’s website at www.vasocorporation.com.
Summarized Financial Information and Non-GAAP Financial Measures
We utilize Adjusted EBITDA to evaluate our performance internally, and this non-GAAP financial measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Management believes that this non-GAAP financial measure, in addition to GAAP measures, is also useful to investors to evaluate the Company’s results.
Adjusted EBITDA is not a measure of financial performance under U.S. GAAP and should not be considered a substitute for operating income (loss), which we consider to be the most directly comparable U.S. GAAP measure. Adjusted EBITDA has limitations as an analytical tool, and when assessing our operating performance, you should not consider Adjusted EBITDA in isolation, or as a substitute for net income or other consolidated income statement data prepared in accordance with U.S. GAAP. Investors should recognize that the Company’s presentation of this non-GAAP financial measure might not be comparable to similarly-titled measures of other companies, limiting its usefulness as a comparative measure.
Summarized financial information including a reconciliation of operating loss to Adjusted EBITDA is set forth below:
| FOR THE THREE MONTHS ENDED | ||||||
| STATEMENTS OF OPERATIONS | March 31, 2025 | March 31, 2024 | ||||
| (In thousands) | ||||||
| (unaudited) | ||||||
| Revenue | $ | 19,462 | $ | 18,738 | ||
| Gross profit | 11,358 | 10,918 | ||||
| Operating loss | (1,218 | ) | (1,468 | ) | ||
| Other (expense) income, net | 183 | 307 | ||||
| Loss before taxes | (1,035 | ) | (1,161 | ) | ||
| Income tax expense | (40 | ) | (12 | ) | ||
| Net loss | $ | (1,075 | ) | $ | (1,173 | ) |
| Income tax expense | 40 | 12 | ||||
| Interest expense (income), net | (248 | ) | (299 | ) | ||
| Depreciation and amortization | 160 | 185 | ||||
| Non-cash stock-based compensation | 8 | 9 | ||||
| Adjusted EBITDA* | $ | (1,115 | ) | $ | (1,266 | ) |
| *Adjusted EBITDA is earnings (loss) before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||||
| BALANCE SHEETS | March 31, 2025 | December 31, 2024 | ||||
| (In thousands) | ||||||
| (unaudited) | ||||||
| Total current assets | $ | 45,981 | $ | 51,185 | ||
| Total assets | $ | 77,914 | $ | 82,938 | ||
| Total current liabilities | $ | 30,245 | $ | 34,720 | ||
| Total stockholders’ equity | $ | 26,650 | $ | 27,702 | ||
The information contained in this report contains forward-looking statements (as such term is defined in the Securities Exchange Act of 1934 and the regulations thereunder). These forward-looking statements may include projections of, or guidance on, the Company’s future financial performance, expected levels of future revenue and expenses, anticipated growth strategies, and anticipated trends in the Company’s business or financial results. When used in this report, words such as “anticipates”, “continue”, “believes”, “could”, “estimates”, “expects”, “may”, “plans”, “potential”, “future”, “intends”, the negative of these terms and similar expressions identify forward-looking statements. Any forward-looking statement made by the Company in this document is based only on the Company’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business based on information currently available to the Company and speaks only as of the date when made. Forward-looking statements are not historical facts or guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control, and actual results may differ materially from this forward-looking information and therefore should not be unduly relied upon. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the possibility of a downturn or disruptions in the U.S. economy; the impact of US tariff policies; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Jonathan Newton
Investor Relations
Phone: 516-997-4600
Email: jnewton@vasocorporation.com
