Executive Summary

Q3 revenue increased 8% year over year to $2,915,081 with gross margin stable at 66%; sequential revenue rose ~2% versus Q2, driven by Freedom Alert Mini and upgraded Guardian Alert 911 Plus, and a continued shift to VA/B2B channels .
Operating loss of $(1,736,364) improved sequentially from Q2’s $(2,132,414); OpEx rose 7.5% YoY on sales leadership and software innovation investments; net loss to common stockholders was $(1,700,505), or $(2.21) per share (reflecting October reverse split) .
Balance sheet remained strong: cash and investments totaled $11.7M at quarter-end with no long-term debt, providing flexibility to pursue channel expansion and AI-enabled platform initiatives .
Consensus revenue for Q3 was ~$2.72M*, implying a modest beat; EPS coverage was sparse (consensus $0.00*), limiting signal. Near-term catalysts: VA/government channel durability, B2B reseller momentum, and new AI-driven features (Medication Reminders, Activity Metrics) that underpin a move to recurring services .
Management highlighted manufacturing diversification (shift of two key products from China to Taiwan) and reiterated focus on subscription attach rates and AI analytics as medium-term value drivers .
Values with asterisk (*) retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Revenue growth in five of the past six quarters, with Q3 revenue up 8% YoY; strength from VA and B2B channels and product upgrades (Guardian Alert 911 Plus with fall detection, Freedom Alert Mini) .
- Gross margin held at 66% in Q3 and YTD, signaling stable unit economics despite channel mix shifts; Q2 margin was 67.5% .
- Strong liquidity: $11.7M cash and investments, no long-term debt—capacity to invest in sales infrastructure and the AI-enabled care and analytics platform .
- Quote: “We’re moving beyond selling stand-alone devices to building a comprehensive platform that layers subscription monitoring, predictive analytics, and actionable insights...” — CEO Chia-Lin Simmons .
What Went Wrong
- Continued operating and net losses; Q3 operating loss $(1.74)M and net loss to common $(1.70)M underscore the need for scale and operating leverage .
- OpEx increased YoY on sales leadership hires and software innovation; total OpEx $3.66M vs $3.40M in Q3’24; investment phase continues .
- EPS comparability is noisy due to the October reverse split; GAAP diluted EPS $(2.21) vs $(3,732.56) prior year and $0.00 in Q2, limiting EPS trend utility for screening .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($)	$2,705,461	$2,853,210	$2,915,081
Gross Profit ($)	$1,801,627	$1,927,300	$1,919,066
Gross Margin (%)	—	67.5%	66%
Total Operating Expenses ($)	$3,401,179	$4,059,714	$3,655,430
Operating Income (Loss) ($)	$(1,599,552)	$(2,132,414)	$(1,736,364)
Net Loss to Common ($)	$(1,593,805)	$(2,127,672)	$(1,700,505)
Diluted EPS ($)	$(3,732.56)	$0.00	$(2.21)

Notes:

Q3’25 gross margin stable at 66% (company-stated), while Q2’25 GM explicitly reported at 67.5% .
EPS comparability impacted by the 1-for-750 reverse split completed in October 2025 (retroactive share adjustments) .

KPIs and Balance Sheet Highlights

KPI	Q3 2024	Q2 2025	Q3 2025
Cash & Cash Equivalents ($)	—	$5,013,959	$4,117,556
Investments ($)	—	$7,965,965	$7,568,066
Cash + Investments ($)	—	~$13.0M	$11.7M
Deferred Revenue ($)	$225,195	$400,026	$501,573
No Long-Term Debt	—	Yes	Yes

Estimates vs. Actuals

Metric	Period	Consensus*	Actual	Surprise
Revenue ($)	Q3 2025	$2,721,690*	$2,915,081	+$193,391 / +7.1%
EPS ($)	Q3 2025	$0.00*	$(2.21)	— (limited EPS coverage)
Revenue ($)	Q4 2025	$2,260,420*	—	—

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

Segment breakdown: Not provided (company reports consolidated results) .

Guidance Changes

The company did not provide formal quantitative guidance for revenue, margins, OpEx, or other P&L line items in Q3 2025 materials . Management reiterated strategic priorities (VA/government and B2B channels, subscription attach, AI-enabled analytics), but no numerical ranges were issued .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2025	None	None	Maintained (no formal guidance)
Gross Margin	FY/Q4 2025	None	None	Maintained (no formal guidance)
OpEx	FY/Q4 2025	None	None	Maintained (no formal guidance)
EPS/Net	FY/Q4 2025	None	None	Maintained (no formal guidance)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
AI/Technology initiatives	Q2: AI-enabled fall detection; roadmap for medicine reminders; expanding IP (22 of 44 patents issued) .	Launched Medication Reminders and Activity Metrics; positioning as AI-enabled care and analytics platform (digital twin) .	Advancing/productizing
Channel mix & go-to-market	Q2: Building B2B expansion; revitalizing reseller program; VA/government core .	Shift towards B2B channels, stronger reseller momentum; VA remains strong despite D.C. headwinds .	Positive traction
Gross margin/Unit economics	Q2 margin 67.5% (mix/pricing); Guardian Alert 911 Plus pricing uplift .	GM stable at 66% Q3 and YTD; manufacturing shift to Taiwan for two key units .	Stable/slightly lower vs Q2
Regulatory/macro (VA funding)	Q&A Q2: Management does not anticipate near-term veteran device cutbacks; expects administrative changes .	“Headwinds from Washington” noted; VA sales remained strong .	Watchlist, currently resilient
Recurring revenue/subscriptions	Q2: Emphasis on services to add recurring revenue .	Priority #1: increase adoption of bundled monitoring/subscriptions to expand recurring revenue .	Building
Manufacturing/supply chain	Noted product upgrades and mix in Q2 .	Manufacturing of two top units moved from China to Taiwan .	De-risking/diversifying

Management Commentary

Strategy: “We’re moving beyond selling stand-alone devices to building a comprehensive platform that layers subscription monitoring, predictive analytics, and actionable insights...” — CEO Chia-Lin Simmons .
Product/AI: “Medication Reminders and Proactive Activity Metrics… advance our AI strategy — a platform that reflects each user’s real-world behaviors to identify potential concerning health patterns… and support proactive care interventions.” — CEO .
Channels: “Two things [driving performance]: strong sales to our VA partners, and our continued shift towards B2B channels.” — CEO .
Operations/Margins: “Gross margin remained strong at 66%… We have now transferred the manufacturing of our two most popular units from China to Taiwan.” — CFO Mark Archer .
Liquidity: “We ended the quarter with $11.7 million in total liquidity and continue to operate with no long-term debt.” — CFO .

Q&A Highlights

Q3 2025 call had no analyst questions during the live session .
Notable ongoing investor topics (from Q2 context): channel mix shift toward B2B and safety categories beyond traditional medical alerts; and durability of VA demand amidst federal budget uncertainty. Management noted VA demand resilience and expects administrative changes more than beneficiary cutbacks .

Estimates Context

Revenue: Q3 actual $2.915M vs consensus ~$2.722M*, a modest beat (+7.1%) . Coverage appears limited for EPS (consensus $0.00*), reducing interpretability of the EPS “miss.” Values retrieved from S&P Global.
Forward: Q4 revenue consensus ~$2.260M*; FY2025 ~$10.64M*, FY2026 ~$11.86M*. With stable gross margin and OpEx discipline, estimate revisions will likely focus on revenue trajectory within VA/B2B and early subscription attach uplift. Values retrieved from S&P Global.

Key Takeaways for Investors

Revenue momentum intact: five of the last six quarters up; Q3 modestly beat revenue consensus as VA and B2B channels drive growth .
Stable unit economics: 66% GM in Q3; mix/pricing tailwinds from upgraded devices and manufacturing shift to Taiwan support margin resilience .
Investment phase: OpEx elevated on sales leadership and software; sequential operating loss improved vs Q2, but scaling subscriptions and B2B attach will be key to operating leverage in 2026 .
Liquidity supports execution: $11.7M cash/investments and no long-term debt underpin runway for go-to-market and AI platform build-out .
Near-term trading lens: Watch for updates on VA order flow consistency (macro headline risk), reseller momentum, and measured subscription monetization; absence of formal guidance keeps prints/event commentary as primary catalysts .
Medium-term thesis: Transition to a hardware-plus-subscription platform and expansion across institutional/government channels can expand LTV and smooth revenue; successful attach of new AI features will be the lever to re-rate margins and reduce earnings volatility .
Technical note: EPS comparability is distorted by the reverse split; prioritize revenue, gross margin, OpEx, and cash metrics for model calibration until share count stabilizes .

Additional Contextual Press Releases (Q3 timeframe)

National Safety Survey (Aug 19, 2025): Highlights pervasive safety concerns and technology reliance among women—supports broader TAM and product roadmap focus on discretion, reliability, and connectivity .
Earnings release schedule (Oct 30, 2025): Administrative detail on Q3 release timing/webcast .

All document-based facts and figures are cited above. Values with asterisk (*) retrieved from S&P Global.

LogicMark, Inc. (LGMK)·Q3 2025 Earnings Summary