Executive Summary

Revenue rebounded sequentially to $30.9M (+37.6% QoQ) but fell 19.9% YoY as interactive flat panel demand remained soft; gross margin compressed to 35.0% vs 37.7% YoY due to product mix and industry pricing pressure .
Q2 GAAP EPS was $(1.53); S&P Global consensus EPS was $(1.50)* and revenue consensus was $27.29M*, implying a modest EPS miss and a meaningful revenue beat; Adjusted EBITDA remained positive at $1.3M despite revenue headwinds .
Balance sheet risk persists: working capital swung to a $(0.5)M deficit and the company received forbearance/waivers for credit agreement covenant non-compliance through July 31; debt stood at $39.0M .
Strategic catalysts include CL Totem signage launch and expanded school safety integrations showcased at ISTELive/ASCD, supporting diversification beyond IFPDs and positioning for a 2026 growth recovery narrative .

What Went Well and What Went Wrong

What Went Well

Sequential demand improvement: “We increased revenue by nearly 38% in Q2 vs Q1,” signaling potential market stabilization and management optimism .
Maintained positive Adjusted EBITDA ($1.3M) despite revenue headwinds, reflecting cost structure streamlining and operating efficiencies .
Product/commercial momentum: launch of CL Totem signage in North America and showcased integrated safety solutions and new interactive displays at ISTELive/ASCD, broadening solution set and end-market reach .

What Went Wrong

Top-line and margins under pressure YoY: revenue down 19.9% to $30.9M; gross margin fell to 35.0% from 37.7% on mix and pricing pressure; net loss widened to $4.7M .
Operating expenses elevated YoY to $14.7M (47.7% of revenue), driven by higher professional fees (+$0.7M), D&A (+$0.6M), and other costs (+$1.1M), only partially offset by lower employee expenses (−$1.4M) .
Liquidity and covenant risk: working capital deficit of $(0.5)M, ongoing credit agreement covenant breaches (borrowing base and senior leverage ratio) requiring forbearance and waivers .

Financial Results

Quarterly Trend (QoQ)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$24.0	$22.4	$30.9
Gross Profit ($USD Millions)	$7.3	$8.0	$10.8
Gross Margin %	30.6%	35.9%	35.0%
Operating Income ($USD Millions)	$(16.3)	$(2.9)	$(3.9)
Net Income ($USD Millions)	$(16.7)	$(3.2)	$(4.7)
Diluted EPS ($)	$(8.65)	$(1.41)	$(1.53)
EBITDA ($USD Millions)	$(2.5)	$1.6	$0.7
Adjusted EBITDA ($USD Millions)	$(1.8)	$(0.03)	$1.3

Year-over-Year (Q2 2025 vs Q2 2024)

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$38.5	$30.9
Gross Margin %	37.7%	35.0%
Net Income ($USD Millions)	$(1.5)	$(4.7)
Diluted EPS ($)	$(0.92)	$(1.53)
EBITDA ($USD Millions)	$3.0	$0.7
Adjusted EBITDA ($USD Millions)	$3.7	$1.3

Q2 2025 vs Estimates (S&P Global)

Metric	Consensus	Actual (S&P)	Reported (GAAP)	Outcome
Revenue ($USD)	$27,291,000*	$30,852,000*	$30,852,000	Beat
Primary EPS ($)	$(1.50)*	$(1.36)*	$(1.53)	Miss (GAAP vs cons.)

Values retrieved from S&P Global.*

Balance Sheet / KPIs

KPI	Q1 2025	Q2 2025
Cash and Equivalents ($USD Millions)	$8.1	$7.6
Working Capital ($USD Millions)	$1.6	$(0.5)
Inventory ($USD Millions)	$38.4	$28.2
Total Assets ($USD Millions)	$108.7	$99.2
Total Debt, net ($USD Millions)	$39.6	$39.0
Stockholders’ Deficit ($USD Millions)	$(15.8)	$(20.6)
Common Shares Outstanding (Millions)	2.23	2.65

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	None disclosed	No quantitative guidance; management outlook supports a return to overall growth in 2026	N/A
Gross Margin	FY 2025	None disclosed	Maintain “relatively stable gross margins” despite industry pressure	Narrative only
Liquidity/Covenants	Q2-Q3 2025	Prior waivers after Mar 24 Credit Agreement amendment	Forbearance/waivers granted for borrowing base and senior leverage ratio non-compliance through July 31, 2025	Maintained waivers

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document catalog for Aug–Sep 2025; themes reflect prepared remarks and press releases.

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Market demand for IFPDs	Challenging 2024; government spending uncertainty; pricing pressure	Sequential demand improvement (+37.6% QoQ revenue) but YoY still down; optimism for 2026 growth	Improving sequential, subdued YoY
Pricing pressure/mix	Pricing pressure compressing margins	Gross margin at 35.0% vs 37.7% YoY due to mix and pricing	Deteriorating YoY
Cost structure & efficiency	Aggressive expense reduction and streamlining in 2024–Q1’25	Positive Adjusted EBITDA maintained; focus on operating efficiencies	Improving
Product innovation & diversification	Clevertouch Max 2 launch; safety platform integrations	CL Totem launched; showcased integrated solutions at ISTELive/ASCD	Expanding
Credit agreement/covenants	Waiver under Eighth Amendment (Mar 24)	Additional forbearance/waivers; not in compliance at multiple month-ends	Ongoing risk
FX/warrants impacts	FX and warrant valuation affecting other expense	Lower other expense driven by FX gains and warrants changes YoY	Improving

Management Commentary

“We increased revenue by nearly 38% in Q2 vs Q1, suggesting an improvement in industry demand and giving management optimism for the future… Our market outlook supports a return to overall growth in 2026” — Dale Strang, CEO .
“Boxlight maintained positive Adjusted EBITDA despite the revenue headwinds… We were able to maintain relatively stable gross margins despite industry-wide, external downward pressure” — Dale Strang, CEO .
Q1 positioning: “Strategically focusing on operational efficiency and expanding our commercial ecosystem ahead of the next spending cycle… diversified offerings, multinational supply chain, and strong installed base” — Dale Strang, CEO .
2024 review: “The market for interactive flat panel technology was challenging… diversified supply chain and distributed geographical revenue base… analysts project a market recovery… expansion into corporate signage and campus communication solutions” — Dale Strang, CEO .

Q&A Highlights

No Q2 2025 earnings call transcript was found in the document catalog for the period; guidance clarifications and analyst Q&A themes were not available in primary sources.

Estimates Context

S&P Global consensus for Q2 2025 revenue was $27.29M* vs actual $30.85M* and reported $30.85M, indicating a revenue beat .
S&P Global consensus Primary EPS was $(1.50)* vs actual $(1.36)* and GAAP diluted EPS $(1.53), implying a modest EPS miss on GAAP reporting .
Values retrieved from S&P Global.*

Where estimates may need to adjust:

Street models should reflect the sequential improvement in revenue and ongoing pricing/mix pressure on margins; Adjusted EBITDA resiliency suggests cost actions are taking hold .
Balance sheet constraints (working capital deficit, covenant waivers) may temper near-term growth and require tighter cash flow assumptions .

Key Takeaways for Investors

Sequential revenue acceleration (+37.6% QoQ) signals demand stabilization, but YoY declines and margin compression highlight ongoing IFPD headwinds; focus on mix and pricing pressure as primary drivers .
Revenue beat vs consensus and positive Adjusted EBITDA demonstrate operational progress; however, GAAP EPS missed consensus and net loss widened YoY . Values retrieved from S&P Global.*
Liquidity/covenant risk remains a key overhang; monitor compliance and any further waivers/amendments to the Credit Agreement .
Diversification to signage and campus safety solutions (CL Totem, integrated safety ecosystem) could broaden addressable markets and support recovery into 2026 .
Margin trajectory hinges on product mix and competitive pricing; management is targeting “relatively stable” gross margins via value-add solutions and efficiencies .
Short-term: stock likely reacts to the combination of revenue beat and covenant risk—watch for any subsequent lender updates or liquidity actions .
Medium-term: if market refresh cycle materializes and the company sustains cost discipline, Boxlight could leverage its installed base and integrated platform to outperform in a 2026 recovery .

Boxlight Corp (BOXL)·Q2 2025 Earnings Summary