Executive Summary

Q2 2025 revenue grew 62.4% year over year to $0.813M, driven by the S&P 500 bank and new QID services; however, quarterly revenue “undershot prior projections” due to delays in QID customer implementation .
EPS was -$0.69 vs Wall Street consensus of -$0.36; revenue beat consensus by ~9.7% ($0.813M vs $0.741M); coverage is thin with only 1 estimate for both metrics (bold miss on EPS, modest beat on revenue)*.
Operating loss improved by ~36% YoY as total operating expenses fell ~20% YoY and SG&A decreased ~33% YoY on headcount and compensation reductions .
Onboarding momentum: 88 institutions onboarded via FIS and 101 total customers as of 6/30; updated press release cites 92 institutions and 105 customers as of the release date, with transaction starts up 247% in H1 and a 179% July spike, plus >30% completion rate improvement .
Liquidity remains tight (cash $0.292M; going concern risk). Post-quarter, IDAI activated the $6.196M ATM and raised ~$0.154M net; also issued a $2.21M secured note with redemption/exit fee provisions .

(*) Values retrieved from S&P Global

What Went Well and What Went Wrong

What Went Well

Revenue +62% YoY to $0.813M, with contributions from the S&P 500 bank ($0.430M), QID ($0.251M recognized; $0.294M deferred), FIS ($0.042M), Triton ($0.041M), and Mastercard ($0.035M) .
Cost discipline: SG&A down ~$0.702M (-33% YoY) driven by sales team reductions and executive restructuring; Adjusted EBITDA loss improved 42% YoY to -$1.23M .
Adoption momentum: “transaction starts… increased 247% including a 179% increase for July versus the prior month, and customer completion rates increased by over 30%” .

What Went Wrong

Quarterly revenue “undershot prior projections” due to delays in QID customer implementation; deferred revenue rose to $0.410M, highlighting timing issues .
Gross margin compression QoQ (cost of services +47% YoY on higher web services, internal developer allocations, and ID validation usage), pressuring profitability .
Liquidity strain: cash fell to $0.292M with net operating cash outflows of $2.10M in H1; substantial doubt about going concern without additional financing .

Financial Results

Summary vs Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD)	$1.50M	$0.545M*	$0.813M
Diluted EPS ($USD)	-$3.45*	-$0.89*	-$0.69
Gross Profit Margin %	81.93%*	44.87%*	55.36%*
EBITDA Margin %	-76.82%*	N/A*	-202.34%*
EBIT Margin %	-79.42%*	N/A*	-207.05%*
Total Operating Expenses ($USD)	$2.686M*	$2.708M*	$2.495M

Values retrieved from S&P Global (*)

Segment/Revenue Disaggregation

Revenue Type	Q2 2024	Q2 2025
Professional services (over time)	$0.414M	$0.783M
License fees (over time)	$0.086M	$0.030M
Total Revenue	$0.500M	$0.813M

KPIs and Customer Momentum

KPI	Period	Value
Institutions onboarded via FIS	As of 6/30/2025	88
Total customers implemented or implementing	As of 6/30/2025	101
Institutions onboarded via FIS	As of 8/14/2025 release date	92
Total customers implemented or implementing	As of 8/14/2025 release date	105
Transaction starts increase (FIS-related institutions)	H1 2025 vs prior baseline	+247%
Transaction starts MoM spike	July vs June 2025	+179%
Completion rates	H1 2025	+30%+
Deferred revenue balance	6/30/2025	$0.410M

Results vs Wall Street Consensus (S&P Global)

Metric	Consensus	Actual	Surprise
Revenue ($USD)	$0.741M*	$0.813M	+$0.072M; +9.7% (Beat)*
Primary EPS ($USD)	-$0.36*	-$0.5797	-$0.22 (Miss)*
Revenue - # of Estimates	1*	—	—
EPS - # of Estimates	1*	—	—

Values retrieved from S&P Global (*)

Guidance Changes

Metric	Period	Previous Guidance	Current/Update	Change
FY Revenue from contracted customers	FY 2025	“> $5.0M” anticipated from existing contracted customers	Q2 commentary notes Q2 revenue “undershot prior projections” due to QID implementation delays; no updated FY number provided	Implied timing risk; no formal update
Expense savings (OpEx) vs 2024	FY 2025	$0.10M/month new savings (3/31 release)	$0.18M/month new savings (5/15 release)	Raised
Cash burn	Remaining 2025	Avg $0.20M/month (3/31 release)	Avg $0.24M/month (5/15 release)	Raised
ATM capacity	Ongoing	$6.196M available (entered 2/25/2025)	47,000 shares sold for ~$0.154M net post-Q2	Utilized
QID MTSA service fee floor	H1 2025	Minimum $0.100M/month Jan–Jun; up to $0.300M/month thereafter	$0.251M recognized in Q2; $0.294M deferred at 6/30	Execution lag vs billing

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was found; themes compiled from 8-K/press releases and 10-Q.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Orchestration Layer adoption	94 institutions registered as of Q1 release , strong growth; Q4 highlighted traction	88 institutions and 101 customers at 6/30; press release update to 92/105; H1 transaction starts +247%, July +179%, completion rate +30%+	Improving utilization, accelerating completions; near-term timing risk
QID commercialization	License/assignment and MTSA; $1.0M license fee note fully paid; minimum $0.1M/month Jan–Jun	Q2 revenue recognized $0.251M; $0.294M deferred; delays vs projections	Behind plan short term
Cost discipline	Announced headcount and SG&A cuts in prior quarter	SG&A -33% YoY; Adjusted EBITDA loss -42% YoY	Positive
Liquidity/financing	ATM set up in Feb; prior secured note paid in Jan	Post-Q2: ATM utilized ($0.154M net) and $2.21M secured note with exit/mandatory prepay features	Mixed (more runway; higher obligations)
Strategic/geographic expansion	Tokyo office; APAC focus; Africa initiatives	Press releases: Ghana NIA MoU; Korea K-Startup program; age verification solution roll-out	Expanding pipeline

Management Commentary

“Revenue for the three months ended June 30, 2025, while significantly increased, undershot prior projections due to delays in customer implementation for the QID services contract. The Company was able to redirect assigned resources to product improvements and new customer onboarding.”
“As of the date of this release, a total of 92 financial institutions with over $348 billion in assets have been onboarded via FIS… transaction starts… increased 247% including a 179% increase for July… and customer completion rates increased by over 30%.”
On product positioning in age verification: “TrustedAge is a biometric key, permanently locked to one user… a simple, live selfie check ensures the right person is present, without storing their biometric data.”
Strategic expansion: exclusive MoU with Ghana’s NIA for identity tokenization and revenue-sharing implementations; management highlights digital ID’s macroeconomic impact potential .

Q&A Highlights

No Q2 2025 earnings call transcript was available. Key clarifications from filings/releases:

QID delays drove the Q2 revenue shortfall vs projections; management redirected resources to onboarding/product improvement .
Revenue mix is shifting toward services (professional services $0.783M in Q2) with reduced license fees post-Mastercard amendment .
Liquidity plan: utilize ATM and debt financing; post-Q2 secured note includes redemption cadence and exit fees, plus mandatory prepayments on future raises .

Estimates Context

Q2 2025 revenue beat consensus by ~9.7% ($0.813M vs $0.741M), while EPS missed (actual -$0.5797 vs -$0.36). Coverage is thin with 1 estimate for both metrics, limiting signal strength*.
Given QID implementation timing and deferred revenue, near-term estimate revisions may reflect improved conversion of backlog in H2 vs Q2 cadence.
Values retrieved from S&P Global (*)

Key Takeaways for Investors

Execution vs timing: Operational KPIs (starts/completions) are accelerating, but revenue conversion lagged in Q2 due to QID ramp delays—watch H2 conversion of deferred revenue and MTSA billing .
Cost actions are sticking: SG&A down ~33% YoY and Adjusted EBITDA loss narrowed 42%—continued discipline is central to path toward breakeven .
Liquidity watch: Cash $0.292M and going concern disclosure; post-quarter ATM and $2.21M secured note extend runway but add redemption/exit fee obligations—monitor financing cadence and mandatory prepay triggers .
Customer concentration and mix: S&P 500 bank and QID accounted for ~84% of Q2 revenue; reduced Mastercard license fees shift mix toward services—scale with FIS and new customers is key .
Strategic optionality: Ghana NIA MoU, APAC expansion (K-Startup), and age verification solution broaden the pipeline; proof points and contract conversion will be catalysts .
Near-term trading: Expect stock to react to H2 revenue cadence (conversion of deferred/QID ramp), financing updates under ATM/note, and customer wins; thin estimate coverage can amplify beats/misses*.
Values retrieved from S&P Global (*)

Additional Data Detail

Q2 2025 P&L highlights (three months ended 6/30/2025): Revenue $0.813M; Operating expenses $2.495M; Operating loss -$1.683M; Net loss -$1.712M; Diluted EPS -$0.69 .
Disaggregation: Professional services $0.783M; License fees $0.030M .
Adjusted EBITDA: -$1.230M in Q2, vs -$2.131M in Q2 2024 .
Deferred revenue: $0.410M at 6/30/2025 .
Liquidity: Cash $0.292M; Net operating cash outflows -$2.097M (H1) .
Customer contribution: S&P 500 bank 52.9% and QID 30.9% of Q2 net revenue .

Citations

T Stamp Inc (IDAI)·Q2 2025 Earnings Summary