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Boxlight Corp (BOXL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 missed Street on revenue, EPS, and EBITDA as tariffs and weaker industry demand compressed margins: revenue $29.3m vs $32.7m est*, EPS $(1.88) vs $(0.94) est*, EBITDA $(1.1)m vs $1.9m est*; gross margin fell to 29.1% (–470 bps YoY; –590 bps QoQ) due largely to $1.6m of incremental tariffs in the U.S. market .
  • Sequentially, revenue declined 4.9% from Q2 2025 after a strong Q2 rebound, while net loss widened to $(6.2)m; Adjusted EBITDA swung to $(0.4)m from $1.3m in Q2 .
  • Liquidity improved: cash ended at $11.8m (from $7.6m in Q2), aided by a $3.6m equity raise and $1.9m of warrant exercises; Boxlight regained Nasdaq compliance in October, removing a delisting overhang .
  • Credit watch items: company disclosed covenant non‑compliance on borrowing base (July–Sept) and senior leverage ratio at quarter‑end under its Credit Agreement, highlighting ongoing balance sheet risk .

What Went Well and What Went Wrong

What Went Well

  • Strengthened balance sheet and listing status: Raised $3.6m gross via a registered direct offering, received $1.9m from warrant exercises, and regained Nasdaq compliance (Oct 8) .
  • Product and market activity: Launched CL Totem digital signage in North America; management sees “opportunity‑rich” demand for upgrades and refresh cycles across K‑12 and corporate signage .
  • Cash build: Cash rose to $11.8m with positive working capital of $1.5m at quarter‑end, from a $(0.5)m deficit in Q2 .

What Went Wrong

  • Demand/mix and tariff pressures: Revenue down 19.2% YoY; tariffs increased by $1.6m in Q3, driving gross margin down to 29.1% (from 33.8% YoY; 35.0% QoQ) .
  • Profitability deterioration: EBITDA $(1.1)m and Adjusted EBITDA $(0.4)m vs $1.6m and $2.2m in Q3’24; net loss widened to $(6.2)m vs $(3.1)m YoY .
  • Credit covenant breaches: Not in compliance with borrowing base tests (July–Sept) and senior leverage covenant at 9/30/25, underscoring financing and liquidity risks despite the improved cash balance .

Financial Results

Income statement trend (YoY and QoQ)

MetricQ3 2024Q2 2025Q3 2025
Revenue ($m)36.289 30.852 29.337
Gross Profit ($m)12.252 10.790 8.535
Gross Margin %33.8% 35.0% 29.1%
Operating Expenses ($m)13.111 14.702 12.479
EBITDA ($m)1.552 0.717 (1.065)
Adjusted EBITDA ($m)2.195 1.273 (0.412)
Net Loss ($m)(3.061) (4.719) (6.184)
Diluted EPS ($)(1.72) (1.53) (1.88)

Q3 2025 actual vs S&P Global consensus

MetricEstimate*ActualDelta
Revenue ($m)32.728*29.337 (3.391)
EPS ($)(0.94)*(1.88) (0.94)
EBITDA ($m)1.926*(1.065) (2.991)

Values with asterisks (*) retrieved from S&P Global.

Balance sheet & operating KPIs

KPIQ1 2025Q2 2025Q3 2025
Cash & Cash Equivalents ($m)8.077 7.608 11.812
Working Capital ($m)1.6 (0.5) 1.5
Total Debt ($m)39.618 39.0 36.7
Inventories ($m)38.354 28.190 26.066
Accounts Receivable, net ($m)17.444 21.439 19.680

Note: Company did not disclose a segment revenue breakdown in the Q3 press release and 8‑K materials –.

Non‑GAAP notes: Adjusted EBITDA adds back stock comp, derivative/warrant FV changes, and purchase accounting effects (inventory, deferred revenue), among other items – –.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025Not provided –Not provided –N/A
Adjusted EBITDAFY 2025Not provided –Not provided –N/A
Other metrics (margins, OpEx, tax, segments)FY 2025Not provided –Not provided –N/A

Management commentary referenced a qualitative outlook and a market “reset,” but no numeric guidance ranges were issued in Q3 disclosures .

Earnings Call Themes & Trends

(Note: No Q3 2025 earnings call transcript was available in the document set as of Nov 20, 2025.)

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Demand/macro & fundingIndustry demand challenges; budget uncertainty; focus on efficiency Sequential rev rebound (+37.6% QoQ) but YoY pressure; aiming for 2026 return to growth Market “reset” continues; U.S. government funding disruption weighs on demand Mixed, near‑term still soft
Tariffs/tradeTrade policy impacting component costs Pricing pressure cited Tariffs +$1.6m; key driver of GM compression Worsening headwind
Product momentumNew Clevertouch Max 2; K‑12 safety integrations Launched CL Totem signage; 40th anniversary events Continued CL Totem push; awards in K‑12 and corporate signage Gradual pipeline build
Cost structureOpEx reductions vs prior year Cost streamlining; maintained adj. EBITDA OpEx down YoY; Adj. EBITDA negative on lower GM Mixed (savings vs GM pressure)
Listing/financing—Forbearance/waivers; deficits noted Equity raise; regained Nasdaq compliance; covenant breaches flagged De‑risking listing, credit risk remains

Management Commentary

  • “The market cycle … is still in the process of resetting itself, but … evolving trade dynamics and disruption in government funding are having negative effects on the entire industry. Tariff costs, in particular, contributed to downward pressure on margins.” — CEO Dale Strang .
  • “Despite these challenges, we see an opportunity‑rich future … numerous opportunities for product upgrades, replacements and refreshes … awarded multiple opportunities in both the K‑12 education and the corporate digital signage market segment.” — CEO Dale Strang .
  • “We were … pleased to receive notice from Nasdaq … that our actions taken in the third quarter resulted in Boxlight regaining full compliance with their listing rules.” — CEO Dale Strang .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in the filings/press releases set reviewed; therefore, no Q&A themes or clarifications could be extracted at this time.

Estimates Context

  • Q3 2025 delivered a broad miss vs S&P Global consensus: revenue $29.3m vs $32.7m est*, EPS $(1.88) vs $(0.94) est*, EBITDA $(1.1)m vs $1.9m est*, driven by tariff‑related gross margin compression and softer volumes/mix .
  • Given the magnitude of the EBITDA and gross margin shortfall, near‑term Street models may need to reset lower on margins and profitability until tariff headwinds ease and demand normalizes .

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Near‑term pressure from tariffs and funding disruption is the central narrative; $1.6m tariff impact drove a 590 bps QoQ GM decline, flipping Adj. EBITDA negative despite lower OpEx .
  • Liquidity runway improved with cash at $11.8m and total debt down to $36.7m, helped by a $3.6m equity raise and $1.9m warrant proceeds, but covenant non‑compliance highlights ongoing credit risk and lender dependence .
  • Regaining Nasdaq compliance removes a key listing overhang; if sustained, this can broaden capital markets options and reduce technical pressure on the stock .
  • Sequential revenue dip after Q2 rebound suggests recovery remains choppy; watch for order conversion in K‑12 refresh cycles and corporate signage to validate management’s “opportunity‑rich” pipeline .
  • Execution focus: protect gross margin (pricing, sourcing, tariff mitigation), continue working capital improvements (inventory down materially YTD), and hold OpEx discipline to drive operating leverage on recovery .
  • Trading lens: absent catalysts, prints will skew to margin/run‑rate cash metrics; any tariff relief, large K‑12 awards, or improved covenant footing could be upside catalysts; further covenant stress or dilution would be negative .

Values with asterisks (*) retrieved from S&P Global.