Executive Summary

ALT5 Sigma delivered another record quarter in Fintech with revenue of $5.51M and gross margin of 46.99%, while total Adjusted EBITDA was negative $0.17M due to Corporate and Biotech offsets .
The company announced the acquisition of Mswipe, expected to close early in Q2 and be immediately accretive to revenue and EBITDA; management also highlighted an annualized run-rate “north of $22M” and favorable regulatory tailwinds through FY25 .
Sequential momentum persisted: Q4 2024 revenue was $5.42M vs Q3 2024 $4.94M, and Q1 2025 rose further to $5.51M; however, gross margin moderated from ~52% in Q4 to 47% in Q1, implying mix or investment effects .
Wall Street consensus estimates were unavailable, preventing formal beat/miss analysis; investor focus shifts to accretive M&A execution, margin durability, and segment separation strategy .

What Went Well and What Went Wrong

What Went Well

Record Fintech quarter: “Fintech Revenues of $5.51 million” and “Gross Profit of $2.59 million or 47%” .
Strategic M&A: “Acquisition of Mswipe… will be accretive immediately upon close to both revenue and EBITDA,” with card issuer offering integrated with ALT5 Pay and available to 1,000+ ALT customers .
Management confidence and demand: “run rate… north of $22m” and “favorable tailwinds from a regulatory perspective continuing throughout fiscal 2025 and beyond” .
CEO quote: “The ability to offer a fully integrated digital wallet—including support for cryptocurrency and stablecoin transactions—adds another strategic layer to our proprietary IP stack” .

What Went Wrong

Total Adjusted EBITDA negative: Fintech Adjusted EBITDA $1.15M was offset by Corporate and other $(1.26)M and Biotech $(0.058)M, culminating in total Adjusted EBITDA of $(0.168)M .
Margin compression: gross margin declined sequentially from ~52% in Q4 to 47% in Q1, implying weaker mix or higher costs; management did not provide a detailed explanation in Q1 materials .
Lack of external coverage: Wall Street consensus (EPS, revenue) was not available, limiting visibility on relative performance vs expectations [GetEstimates Q1 2025—no consensus fields; Values retrieved from S&P Global].

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$4.94	$5.42	$5.51
Diluted EPS - Continuing Ops ($USD)	N/A	-0.267 *	-0.184
Gross Profit ($USD Millions)	$2.39	$2.84*	$2.59
Gross Profit Margin (%)	~48.4%	52.29%*	46.99%
EBITDA Margin (%)	N/A	-9.89%*	-17.41%*
Net Income - (IS) ($USD Millions)	$0.714	-$3.868*	-$2.861
Cash and Equivalents ($USD Millions)	$8.67	$7.18	$10.81

Notes:

Asterisk denotes values retrieved from S&P Global where document citations were unavailable. Values retrieved from S&P Global.
Gross margin Q3 ~48.4% derived from gross profit and revenue disclosed in press release .

Segment breakdown (Adjusted EBITDA and key items – Q1 2025)

Segment	Revenue ($USD Millions)	Adjusted EBITDA ($USD Millions)	Notes
Fintech	$5.51	$1.15	Record quarter; integrated card issuer offering via Mswipe; 1,000+ customers
Biotech	N/A	-$0.058	Ongoing separation into Alyea Therapeutics
Corporate & Other	N/A	-$1.26	Corporate costs offset Fintech EBITDA
Total	$5.51	-$0.168	Consolidated Adjusted EBITDA negative due to non-Fintech offsets

KPIs and Operational Metrics

KPI	Q3 2024	Q4 2024	Q1 2025
Customers	Strong onboarding; trajectory building	Surpassed 1,000 accounts	1,000+ available for ALT5 Pay + Mswipe offering
Transaction Volume	>$600M	N/A	N/A
Gross Margin (Fintech)	~50% (close to 50% per commentary)	50.2% (FY Fintech)	46.99% consolidated
Annualized Run-Rate	N/A	N/A	“north of $22M”
Working Capital QoQ	N/A	+$4.5M improvement Q3 to Q4	N/A
Awards/Partnerships	N/A	“Best Payment Provider” (Feb 2025); Odoo integration (Jan 2025)	Mswipe integration live; accretive
Fintech Net Income	$0.714M	N/A	N/A
Cash Balance	$8.67M	$7.18M	$10.8M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Annualized Revenue Run-Rate	FY 2025 trajectory	N/A	“north of $22M”	New disclosure (informal run-rate)
M&A Accretion (Revenue, EBITDA)	Post-close (early Q2)	N/A	Accretive to revenue and EBITDA immediately upon close	New; positive
Regulatory Tailwinds	FY 2025 and beyond	N/A	Favorable tailwinds expected to continue	New qualitative
Segment Separation (Biotech)	H1 2025	Board-approved separation	Proceeding to Alyea standalone path	Maintained trajectory

Note: No formal numerical ranges were provided for revenue/EPS/margins; disclosures are directional.

Earnings Call Themes & Trends

Call transcript for Q1 2025 was not available; themes derived from press releases and filings.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Customer Growth	Strong onboarding; expanding demand	Surpassed 1,000 accounts	Card issuer offering available to 1,000+ customers	Improving
Payments/Technology	Expanding Prime/Pay capabilities	Odoo integration; new crypto pairs; award	Integrated Mswipe; stablecoin/fiat conversion capability	Accelerating
Margins	Close to 50% gross margin (Fintech)	Fintech FY gross margin 50.2%	Consolidated gross margin 47.0%	Mixed (slight compression)
Regulatory/Macro	Post-election demand commentary	N/A	Favorable regulatory tailwinds expected FY25+	Improving
Segment Strategy	Board-approved separation of Biotech	Alyea leadership build; standalone listing plans	Continued separation progress	Continuing

Management Commentary

“We are thrilled to announce the acquisition of Mswipe… The integration between ALT5 and Mswipe technologies is already complete and live with multiple customers.” — Peter Tassiopoulos, CEO .
“The ability to offer a fully integrated digital wallet—including support for cryptocurrency and stablecoin transactions—adds another strategic layer to our proprietary IP stack.” .
“Q1, 2025 met our expectations with another record quarter… pushes our annualized run rate to north of $22m… favorable tailwinds… continuing throughout fiscal 2025 and beyond.” .

Q&A Highlights

No Q1 2025 earnings call transcript was available. Guidance clarifications and tone assessment are based on press release disclosures (accretive M&A, run-rate commentary, regulatory tailwinds) .

Estimates Context

S&P Global consensus estimates for Q1 2025 EPS and revenue were not available; “Primary EPS Consensus Mean,” “Revenue Consensus Mean,” and counts of estimates were empty for the period, precluding beat/miss assessment (Values retrieved from S&P Global).
Reported Q1 2025 Revenue was $5.51M and reported Adjusted EBITDA was $(0.168)M across segments, implying near-term margin sensitivity as Corporate/Biotech expenses offset Fintech profitability .

Key Takeaways for Investors

Accretive M&A likely to be the near-term catalyst: closing of Mswipe early in Q2 with immediate accretion to revenue and EBITDA should support top-line growth and operating leverage if Corporate costs are contained .
Sequential growth with margin watch: revenue increased Q/Q to $5.51M, but gross margin fell to 46.99%; monitor mix, cost scaling, and pricing dynamics as integrated offerings expand .
Fintech engine vs consolidated profitability: Fintech Adj. EBITDA $1.15M was offset by Corporate and Biotech, producing consolidated negative Adjusted EBITDA; focus on cost discipline and timing of Alyea separation to unlock fintech earnings power .
Liquidity improved: cash rose to $10.8M, offering flexibility to integrate Mswipe and support growth initiatives .
Demand/regulatory backdrop constructive: management cited favorable regulatory tailwinds and strong customer demand; execution on wallet and card issuer offerings could drive adoption .
Estimates unavailable: With limited external coverage, stock reaction may hinge on strategic updates (M&A close, integration milestones, margin trajectory) rather than beats/misses (Values retrieved from S&P Global).
Medium-term thesis: A scaled fintech platform integrating crypto/stablecoin with fiat payments, partnerships (e.g., Odoo), and IP enhancements positions ALT5 to expand volumes and monetization; successful segment separation should reduce dilution and clarify valuation .

ALT5 Sigma Corp (ALTS)·Q1 2025 Earnings Summary