Executive Summary

Revenue grew 13% year-over-year to $3.27M, gross margin expanded 820 bps to 75.3%, and loss per share improved to $0.073; recurring Technology Fees were 93.8–94% of revenue across recent quarters .
Operating discipline: SG&A fell 35.5% YoY to $2.25M; Adjusted EBITDA improved to -$0.25M for the quarter, with positive Adjusted EBITDA achieved in September on a monthly basis .
Strategic catalysts: AI/predictive Cardiac AI development (FDA filing targeted mid-next year), three major GPO partnerships providing access to >90% of U.S. hospitals, and largest inventory order positioning for scalability .
No formal numerical guidance; management reiterated expectations of continued gross margin strength and improving cash flows near term .
Key stock narrative: improving unit economics and recurring revenue mix offset by liquidity risk, high interest burden, and prior Nasdaq delisting; covenant relief and term loan modification obtained in November 2024 reduce near-term default risk .

What Went Well and What Went Wrong

What Went Well

Margin and mix: Gross margin rose to 75.3% (from 69.1% YoY) driven by higher Technology Fee margins and AI-enabled processing efficiencies; Technology Fees were $3.06M and ~94% of revenue .
Cost control and profitability trajectory: SG&A cut to $2.25M (down 35.5% YoY); Adjusted EBITDA improved to -$0.25M for the quarter and turned positive for September; “we achieved positive EBITDA for the first time in September” .
Commercial scale: “We’ve now signed 3 of the largest GPO networks, providing us access to more than 90% of hospitals in the U.S.” and are expanding pilots beyond cardiology, plus Canada distribution to begin contributing revenue in coming quarters .

What Went Wrong

Liquidity and leverage: Going concern flag persists with working capital deficit and elevated interest expense ($0.75M in Q2); term loan covenant non-compliance required forbearance/waivers and added warrants/exit fee .
Equity and dilution: Conversions and preferred deemed dividend impacts earlier in FY25 drove elevated net loss to common in Q1 (-$6.95M); share count increased materially through conversions and issuances .
Listing risk and market access: Nasdaq delisting in August 2024 to OTCQB under BTCY symbol; heightens financing risk and investor base constraints .

Financial Results

Core metrics vs prior year, prior quarter, estimates

Metric	Q2 FY2024	Q1 FY2025	Q2 FY2025	Wall St. Estimates
Revenue ($USD)	$2,891,297	$3,201,743	$3,266,846	N/A (S&P Global consensus unavailable)
Diluted EPS ($USD)	($0.441)	($0.490)	($0.073)	N/A (S&P Global consensus unavailable)
Gross Margin %	69.1%	73.8%	75.3%	N/A
Total Operating Expenses ($USD)	$4,184,951	$3,480,014	$2,766,846	N/A
Net Loss to Common ($USD)	($3,881,282)	($6,948,292)	($1,653,029)	N/A

Note: Wall Street consensus from S&P Global was not retrievable at time of request; comparison to estimates is unavailable.

Segment breakdown

Segment Revenue ($USD)	Q2 FY2024	Q1 FY2025	Q2 FY2025
Technology Fees	$2,731,461	$3,016,250	$3,064,814
Device Sales	$159,836	$185,493	$202,032
Total	$2,891,297	$3,201,743	$3,266,846

KPIs

KPI	Q2 FY2024	Q1 FY2025	Q2 FY2025
Recurring Tech Fees as % of Revenue	—	94.0%	93.8%
Gross Profit ($USD)	$1,999,278	$2,363,168	$2,459,174
Adjusted EBITDA ($USD)	($1,973,005)	($1,056,380)	($249,299)

Non-GAAP note: Adjusted EBITDA excludes non-operational items (e.g., derivative fair value changes, preferred dividends); reconciliation provided in 10-Q .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY25/near term	None	Directional: continued growth; focus on recurring Technology Fees	Maintained qualitative
Gross Margin	Near term	None	“Anticipates continued strong performance in overall blended gross margins”	Qualitative improvement
Cash Flow	Near term	None	Achieved positive cash flow on current operating basis in September (before interest, dividends, amortization); expects further improvement next quarter	Qualitative improvement
OpEx	Near term	None	Ongoing cost discipline; SG&A reductions emphasized	Qualitative reduction
AI/Regulatory	Mid-2025	None	Target to file for FDA of AI clinical model by mid next year	New qualitative milestone
Dividends/EI&E/Tax	N/A	None	No guidance provided	N/A

No formal numerical ranges were provided; management reiterated directional expectations rather than specific targets .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 FY2025)	Current Period (Q2 FY2025)	Trend
AI/predictive Cardiac AI	Expanding AI tools; building predictive monitoring capabilities and platform relationships (AWS/Google)	“Published research… expect to file for FDA of our AI clinical model by mid next year”	Advancing toward clinical filing
Hospital/GPO channel	Scaling footprint across 35 states; insourcing model; ongoing commercialization	Signed 3 largest GPOs; access to >90% U.S. hospitals; pilots underway	Accelerating enterprise channel
Inventory/supply readiness	Not highlighted in Q1 10-Q	“Largest inventory order… have everything needed in-house to reach profitability point”	Capacity readiness improving
Canada expansion	Not specified in Q1 results	Health Canada approval; revenue to trickle in next couple of quarters	Initial international revenue pipeline
Margin/cash discipline	Gross margin 73.8%; SG&A $3.0M; Adj. EBITDA -$1.06M	Gross margin 75.3%; SG&A $2.25M; Adj. EBITDA -$0.25M; positive monthly Adj. EBITDA in Sept	Improving unit economics
Risk/financing	Nasdaq delisting to OTCQB; going concern; financing needs	Term loan modification, added warrants/exit fee; covenant waivers/forbearance	Near-term relief; structural leverage persists

Management Commentary

CEO: “Second quarter 2025… achieving positive EBITDA for the first time in September and continuing our path to profitability… expanding our Cardiac AI cloud… expect to file for FDA of our AI clinical model by mid next year” .
CFO: “Flat fee revenue grew ~34% YoY; Technology Fees rose 12.2% YoY to just under $3.1M… signed 3 of the largest GPO networks, providing access to more than 90% of hospitals in the U.S.” .
CFO: “Adjusted EBITDA improved to negative $249,000 for the quarter… positive adjusted EBITDA for September 2024 for the first time in history” .
CEO on inventory: “We have everything we need in-house now to get to our profitability point… if we sell all those units, we’ll be well into the profit category” .

Q&A Highlights

Predictive AI impact: Focused on early detection of complex arrhythmias (AFib, VTach, heart blocks) to accelerate interventions and reduce system costs (e.g., stroke avoidance), improving device turns and patient outcomes .
SG&A optimization: Efficiency from economies of scale, bifurcated salesforce/account management, and refocusing reps on larger GPO-oriented deals drove sustainable SG&A reduction .
Inventory strategy: Largest inventory order supports both new customer growth and migrations to Biocore Pro; positioned for a clear path to profitability .
Canada revenue: Distribution partnerships active; revenue expected to begin in the next couple of quarters .
Adjacent specialties: Pulmonology sleep studies with cardiac risk screening and neurology partnerships already generating revenue; validating strategic expansion theses .

Estimates Context

S&P Global consensus estimates were unavailable at time of retrieval due to request limits; therefore, comparisons to Wall Street revenue/EPS/EBITDA estimates for Q2 FY25 cannot be provided reliably.
Given recurring revenue strength and margin expansion, estimate revisions likely bias upward for gross margin and downward for SG&A, while liquidity/interest expense remain key constraints to EPS trajectory .

Key Takeaways for Investors

Margin and mix are improving: Gross margin at 75.3% with recurring Tech Fees ~94% of revenue supports a more resilient P&L profile .
Cost discipline is sticking: SG&A down 35.5% YoY; Adjusted EBITDA near breakeven with a positive month indicates operational leverage emerging .
Channel expansion is material: GPO access to >90% of hospitals and Biocore Pro adoption could accelerate account wins and device placements over the next 2–4 quarters .
AI/regulatory milestones are catalysts: Planned FDA filing for the AI clinical model by mid-next year, if achieved, should enhance narrative around differentiated technology .
Watch liquidity and debt covenants: Going concern language, heavy interest burden (~$0.75M quarterly), and modified term loan terms require close monitoring of cash generation and financing actions .
Equity/dilution dynamics: Continued conversions and issuances have raised share count; factor this into per-share metrics and financing strategy risk .
Near-term trading lens: Momentum on margins/recurring revenue and enterprise channel wins vs. funding risk and prior delisting should drive volatility around financing updates, AI/FDA progress, and large account announcements .

BIOTRICITY INC. (BTCY)·Q2 2025 Earnings Summary