TORONTO and SEATTLE — POSaBIT Systems Corporation, a leading provider of payments infrastructure in the cannabis industry, reported its financial results for the three months ended March 31, 2025.
“As highlighted during our recent annual earnings call, POSaBIT delivered another steady quarter, with consistent adjusted gross margin dollars and flat adjusted EBITDA as compared to the previous quarter — reinforcing the Company’s long-term financial stability,” said Ryan Hamlin, co-founder and CEO. “We remain committed to operating efficiently while continuing to innovate, and we’re seeing strong growth across our expanding product portfolio.”
Hamlin added, “Q1 marked our busiest quarter ever for POS sales and implementations. We also saw stronger-than-expected demand for our newer eCommerce and Menu products, with momentum expected to continue into Q2. While overall revenue was down slightly due to our ongoing payment processing migration, our adjusted gross profit margin of 65% was the highest in the company’s 10-year history. We’re encouraged by the progress we’ve made. We have executed our cost reduction plans, remain profitable and cash flow positive, and have a focused leadership team driving toward a bright future.”
Recent Operational Highlights
- The Point of Sale product continues to experience growth, particularly in Washington State, driven by its dependable recurring revenue model
- Adjusted Revenue, Adjusted Gross Profit, and Adjusted EBITDA remained steady quarter over quarter, with this consistency expected to continue through 2025
- The Company finalized the settlement of its last outstanding legal matter, paving the way for reduced legal expenses for the remainder of 2025.
- The Company completed migration of several cost generating activities to its payments partner, resulting in additional costs savings in 2025 and beyond.
Balance Sheet
As of March 31, 2025, the Company had cash and cash equivalents of $736 thousand compared to $999 thousand as of December 31, 2024. This slight reduction in cash is due to paying off existing legal settlement obligations as well as annual non-executive level salary adjustments.
Financial Reports
Full details of the financial and operating results are described in the Company’s consolidated financial statements for the three months ended March 31, 2025 with accompanying notes. The consolidated financial statements and additional information about POSaBIT are available on the Company’s website or on SEDAR+.
Non-IFRS Measures
Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The Company defines Adjusted Revenue as gross revenue, minus license support revenue, plus actual licensing cash received as part of POSaBIT’s licensing deals. The Company defines Adjusted Gross Profit as Adjusted Revenue less company cost of goods sold, and Adjusted Gross Profit Margin as a percentage of Adjusted Gross Profit as compared to Adjusted Revenue. The Company defines Adjusted EBITDA as net income or loss generated for the period as reported, before interest, taxes, depreciation and amortization and further adjusted in accordance with the reconciliation table set out in this press release. The Company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and uses these measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution readers that Adjusted Revenue, Adjusted Gross Profit (and Adjusted Gross Profit Margin) and Adjusted EBITDA are not substitutes for gross revenue, gross profit or profit/loss, respectively.
ABOUT POSABIT
POSaBIT (CSE: PBIT, OTC: POSAF) is a FinTech working exclusively within the cannabis industry. It provides a Point-of-Sale solution and is a leading cashless payment provider for cannabis retailers.
