T Stamp Inc (IDAI)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $0.55M, down 4.9% YoY and sharply below Q4 2024’s $1.50M; results missed Wall Street consensus revenue of $0.70M by 22% and EPS of -$0.61, with actual EPS of -$0.89. EBITDA was below consensus at -$2.12M vs -$1.30M. Bold miss on revenue, EPS, and EBITDA. Values retrieved from S&P Global.*
• Management reiterated FY 2025 revenue from existing contracted customers “believed to exceed $5.0M,” while increasing expected monthly expense savings to $0.18M and guiding to average cash burn of $0.24M/month for the remaining nine months; prior guidance (3/31) indicated $0.10M/month savings and $0.20M/month burn. Guidance updated higher on savings but burn also higher.
• Orchestration Layer institutional customers rose to 94 as of the 5/15 press release (from 80 at end of Q4 2024), and 87 were implemented or implementing as of 3/31, signaling commercial traction into community banks and credit unions.
• Liquidity remains tight: cash was $1.14M at quarter-end, with substantial doubt raised about going concern over the next twelve months; the company highlights an unused $6.20M ATM capacity to supplement cash needs.

What Went Well and What Went Wrong

What Went Well

• SG&A fell 28% YoY, driven by workforce reductions and lower stock-based comp; Adjusted EBITDA loss improved 19% YoY to -$1.92M.
• Orchestration Layer momentum: “institutional customers registered on the Orchestration Layer platform have increased to ninety-four from eighty at the end of Q4 2024” (12 community banks and 2 credit unions added).
• Strategic validation and partnerships: Trust Stamp Denmark joined Mastercard Lighthouse MASSIV (impact-focused program) and announced a biometric holder-binding partnership with Partisia leveraging MPC and GODS network.

What Went Wrong

• Revenue softness and concentration: net revenue fell 4.9% YoY to $0.55M, with two customers representing ~79.7% of revenue (63.6% S&P 500 bank; 16.1% QID). Misses vs consensus on revenue and EPS. Values retrieved from S&P Global.*
• Reduced fixed monthly license fees under a new Mastercard software amendment pressured recognized license revenue (Q1 2025 Mastercard license revenue: $0.03M vs $0.09M in Q1 2024).
• Going concern risk: management states “substantial doubt” about the ability to continue as a going concern absent sufficient revenue growth and/or financing over the next twelve months.

Financial Results

Income Statement Comparison vs Prior Periods and Estimates

Non-GAAP and Operating Metrics

Segment Breakdown

KPIs

Guidance Changes

Additional liquidity note: Unused ATM capacity up to $6.196M under equity distribution agreement dated Feb 25, 2025.

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available in the document catalog; themes derived from Q1 2025 10‑Q, Q4 2024 press release, and Q1 2025 press releases.

Management Commentary

• “Orchestration Layer 2.0 will be ‘relaunched’ in the second quarter of 2025.”
• “Institutional customers registered on the Orchestration Layer platform have increased to ninety-four from eighty at the end of Q4 2024, with the addition of twelve community banks and two credit unions.”
• On cost actions and focus: “Reducing the size of the non-production-focused executive and consulting teams… releasing sales staff that did not meet their targets… refocusing go-to-market strategies on joint ventures with proven industry partners.”
• On partnership tech thesis: “By joining forces with Partisia, we are making it easier for organizations to adopt best-in-class privacy-first technologies without compromising performance or user experience.”
• On MASSIV program: selection underscores Trust Stamp’s “innovative, privacy-first identity solutions and its potential to drive meaningful social impact.”

Q&A Highlights

No public Q1 2025 earnings call transcript was found; therefore, there are no Q&A highlights to report from a call. Commentary above reflects prepared disclosures from the 10‑Q and press releases.

Estimates Context

• Revenue: Actual $0.55M vs consensus $0.70M → miss of ~22%.*
• EPS: Actual -$0.89 vs consensus -$0.61 → more negative than expected.*
• EBITDA: Actual -$2.12M vs consensus -$1.30M → more negative than expected.*
• Coverage: Single estimate for revenue and EPS (limited sell-side coverage).* Note: Values retrieved from S&P Global.*

Key Takeaways for Investors

• The quarter was a broad miss vs consensus on revenue, EPS, and EBITDA amid lower recognized license fees from Mastercard and continued customer concentration; near-term trading may react to miss magnitude and going-concern language. Values retrieved from S&P Global.*
• Cost discipline is evident (SG&A -28% YoY; Adjusted EBITDA loss improved 19%), partially offsetting revenue headwinds; sustained execution here is critical to extending runway.
• Orchestration Layer momentum (94 registered, 87 implemented/implementing) is a tangible adoption signal; watch conversion to production usage and per‑customer recurring revenue ramp.
• Guidance shifted: higher expected monthly savings ($0.18M) but also higher projected burn ($0.24M/month for the remaining nine months); liquidity optionality via $6.20M ATM remains, but equity issuance could be dilutive.
• Customer diversification is a strategic priority; current revenue remains concentrated (bank and QID); expansion with community banks/credit unions and partnerships (Mastercard MASSIV, Partisia) can mitigate risk over time.
• Monitor Q2/Q3 trajectory: license revenue stabilization, Orchestration Layer 2.0 relaunch impact, and QID services ramp (up to $0.30M/month after initial six months).
• Financing watch: management explicitly flags substantial doubt on going concern absent revenue scale and/or financing; near-term catalysts include ATM usage, strategic partnerships, and potential M&A outcomes.