Vaso Corporation (OTCQX: VASO), a diversified medical technology company, reported its financial results for the first quarter of 2025, showing steady revenue growth and an improved bottom line despite ongoing challenges in the broader business environment.
Revenue Rises, Driven by IT and Sales Segments
For the quarter ending March 31, 2025, Vaso posted revenue of $19.5 million, a 3.9% increase from the $18.7 million recorded in the same period last year. The uptick was primarily fueled by gains in the company’s IT and professional sales service segments. The professional sales service segment saw revenue climb by $578,000, or 7.1%, year-over-year, mainly due to higher product deliveries from its key partner. Meanwhile, the IT segment posted a $162,000, or 1.6%, increase, as stronger network services sales offset a dip in healthcare IT revenue.
The equipment segment, which includes both domestic and international operations, experienced a slight decline, with revenue down $16,000, or 3.6%. This drop was largely attributed to lower equipment deliveries in China, though higher ARCS software subscription revenue in the US helped cushion the impact.
Gross profit for the quarter reached $11.4 million, up $440,000 or 4.0% from the prior year’s $10.9 million. This improvement was linked to the higher overall revenues. However, selling, general, and administrative (SG&A) expenses also rose, increasing by $332,000, or 2.8%, to $12.4 million. The rise in SG&A was mainly due to higher personnel costs in both the IT and professional sales service segments, although these were partially offset by lower expenses in the equipment segment and reduced corporate overhead.
Vaso’s operating loss narrowed to $1.2 million, compared to $1.5 million in the first quarter of 2024. Net loss also improved slightly, coming in at $1.1 million versus $1.2 million a year ago.
Adjusted EBITDA, a non-GAAP measure that excludes interest, taxes, depreciation, amortization, and stock-based compensation, was negative $1.1 million for the quarter, an improvement from negative $1.3 million in the same period last year. The company attributes this progress to the reduced net loss.
Vaso ended the quarter with $25.3 million in cash and cash equivalents. Net cash used in operating activities was $566,000, a significant improvement from the $1.1 million used in the first quarter of 2024. As of May 9, 2025, the company reported cash and cash equivalents totaling approximately $30.5 million.
Deferred revenue, which reflects future revenue from contracts already signed, stood at $35.4 million as of March 31, 2025. This marks an increase of $4.0 million, or 12.7%, from a year earlier, and a $510,000, or 1.5%, rise from the end of 2024. The company credits high deferred revenue in its professional sales service segment and backlogs in the IT and equipment segments for providing revenue stability and visibility for the coming quarters.
Management remains cautiously optimistic about the rest of 2025, noting that the company has historically been more profitable in the latter part of the year. While uncertainties in the general business environment persist, Vaso’s leadership believes the current backlog and deferred revenue position the company to weather potential volatility.
Vaso Corporation operates through three primary subsidiaries. VasoTechnology, Inc. delivers managed network and IT services, specializing in healthcare software and network connectivity. Vaso Diagnostics, Inc., doing business as VasoHealthcare, provides professional sales services and serves as the exclusive sales representative for GE HealthCare diagnostic imaging and ultrasound products in select US markets. Meanwhile, VasoMedical, Inc. is responsible for designing, manufacturing, and selling proprietary medical equipment, as well as managing the company’s overseas assets, including subsidiaries based in China.
