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PSQ Holdings, Inc. (PSQH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 net revenue from continuing operations was $4.4M, up 37% year over year, and the company beat its September revenue guidance by 10%; GAAP net loss per share improved year over year to $(0.26) from $(0.41) .
  • Payments and credit both accelerated: payments revenue reached $1.5M (+50% QoQ) and credit revenue rose to $2.9M (+22% QoQ); FinTech non‑GAAP gross margin was 68% vs. 97% in Q3 2024 due to mix shift toward lower‑margin payments .
  • Guidance reaffirmed: Q4 2025 revenue ≈$6.0M (Payments $2.4M, Credit $3.6M) and FY 2026 revenue ≥$32.0M; 2025 OpEx expected below 2024; guidance excludes discontinued operations .
  • Strategic catalysts: progress on monetizing EveryLife and Marketplace, negotiations to acquire Tandym IP assets, and upcoming Q4 product launches (fundraising platform PSQ Impact, private‑label credit cards), all supporting a FinTech‑focused pivot .

What Went Well and What Went Wrong

What Went Well

  • Beat revenue guidance by 10% and reaffirmed Q4 2025 and FY 2026 outlook: “we beat our previously issued revenue guidance by 10%... proud to reaffirm Fourth Quarter 2025 & Full Year 2026 revenue guidance” .
  • Strong sequential growth in FinTech: payments +50% QoQ to $1.5M and credit +22% QoQ to $2.9M; year‑to‑date FinTech revenue $10.9M (+66% YoY), indicating scaling of the bundled checkout platform .
  • Cost discipline improving losses: Q3 G&A fell $2.3M (−22.3% YoY) and the company realized ~$11M of ~$11M annualized savings from 2024 reorg; non‑GAAP operating loss narrowed materially vs. prior year .

Quote: “Our third‑quarter performance emphatically affirms our decision… to streamline our focus and double‑down on fintech” — Michael Seifert, CEO .

What Went Wrong

  • Margin mix pressure: FinTech non‑GAAP gross margin fell to 68% vs. 97% YoY due to growth in lower‑margin payment processing revenues .
  • Operating loss remained sizable: GAAP operating loss was $(9.7)M for Q3; while improved YoY, it increased sequentially vs. Q2, reflecting investment and mix dynamics .
  • Discontinued operations continued to weigh: Q3 loss from discontinued operations was $(1.94)M; Brands and Marketplace remain in monetization processes, leaving near‑term uncertainty .

Financial Results

Core Financials vs. prior periods and YoY

MetricQ3 2024Q1 2025Q2 2025Q3 2025
FinTech Revenues ($USD Millions)$3.2 $3.1 $3.4 $4.4
Net Loss per Share ($)$(0.41) $(0.10) $(0.18) $(0.26)
GAAP Operating Loss ($USD Millions)$(10.26) $(11.69) $(8.06) $(9.70)
FinTech Non‑GAAP Gross Margin (%)97% N/AN/A68%

Notes:

  • Q3 2025 revenue reflects continuing operations (FinTech); Marketplace and Brands are classified as discontinued operations beginning Q3 2025 .

Segment and Discontinued Operations Detail

Segment MetricQ3 2024Q1 2025Q2 2025Q3 2025
Payments Revenue ($USD Millions)N/AN/A$1.0 $1.5
Credit Revenue ($USD Millions)N/AN/A~$2.4 (implied from +$0.5 to $2.9) $2.9
Marketplace Revenue ($USD Millions)$2.6 (cont.) $0.4 (cont.) $0.3 (cont.) $0.192 (disc.)
Brands Revenue ($USD Millions)$0.718 (disc.) $3.3 (cont.) $3.3 (cont.) $3.732 (disc.)

Notes:

  • “cont.” = reported in continuing ops prior to Q3; “disc.” = reported as discontinued ops beginning in Q3 2025 .
  • Q2 Credit revenue is derived: $2.9M in Q3 was “up $0.5M (22%) QoQ,” implying ~$2.4M in Q2 .

Operating Expense Components (GAAP)

Metric ($USD)Q3 2024Q3 2025
General & Administrative$10,486,994 $8,144,403
Sales & Marketing$1,739,980 $1,564,449
Research & Development$408,313 $1,241,669
Total Operating Expenses$13,469,381 $14,100,960

Notes:

  • Q3 OpEx decreased $1.7M (−13%) vs. prior year on an “Operating expense” basis (G&A, S&M, R&D as defined by the company), despite R&D investments; GAAP classification shows mix changes across lines .

Balance Sheet & Liquidity KPIs

KPIQ1 2025Q2 2025Q3 2025
Cash & Cash Equivalents ($USD Millions)$28.0 $20.6 $12.3 (incl. $1.3 disc. ops)
Revolving Line of Credit Outstanding ($USD Millions)$3.7 $4.0 $4.6
Net Cash Used in Operating Activities (YTD) ($USD Millions)N/A$(11.29) $(17.37)

Non‑GAAP Operating Loss Reconciliation

MetricQ3 2024Q3 2025
GAAP Operating Loss ($USD)$(10,261,973) $(9,696,099)
Non‑GAAP Operating Loss ($USD)$(232,299) $(2,191,079)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY 2025>$46M (Q1 guidance) Guidance removed (Q2) Lowered/Removed
FinTech RevenueQ4 2025~ $6.0M (Payments $2.4M; Credit $3.6M) ~ $6.0M (Payments $2.4M; Credit $3.6M) Maintained (reaffirmed)
Total RevenueFY 2026≥$32.0M (provided 9/25) ≥$32.0M Maintained (reaffirmed)
Operating Expense (G&A/S&M/R&D)FY 2025Lower than 2024 Lower than 2024 Maintained

Notes:

  • Q3 reaffirmed outlook provided at the September 25, 2025 analyst day; guidance excludes discontinued operations .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025 & Q2 2025)Current Period (Q3 2025)Trend
Bundled FinTech (Payments + Credit + Marketing)Emphasis on FinTech integration; marketplace evolution to Made in America Majority of enterprise clients use bundled services; stickiness/retention highlighted Strengthening adoption
AI/Tech in Credit UnderwritingNot detailed in Q1; Q2 highlighted AI/ML improving first‑payment default rates Continued improvement in early payment performance via AI/ML Positive execution
Payments Expansion & MTLsQ2: pursuing money transmitter licenses; payments +80% QoQ Payments +50% QoQ; diverse merchant mix beyond niche verticals Accelerating scale
Crypto & Digital AssetsQ2: Long‑term crypto/DeFi vision; IDX partnership; Caitlin Long to Board Q3: crypto treasury implementation underway; more Q4 initiatives planned Advancing roadmap
Discontinued Ops (EveryLife & Marketplace)Q2: monetize by end of Q4 2025 Brands revenue +42.7% YoY; PA stage targeted by Q4‑end; Marketplace sale/repurposing ongoing On‑track monetization
Onboarding PipelineQ1: integration and onboarding noted Top‑line growth primarily from new customer onboarding; Q4 retail season tailwind Improving throughput

Management Commentary

  • “Our third‑quarter performance emphatically affirms our decision… to streamline our focus and double‑down on fintech” — Michael Seifert, CEO .
  • “FinTech non‑GAAP gross margin for Q3 was 68% vs. 97% last year, primarily related to revenue mix and growth in lower‑margin payment processing revenues” — James Rinn, CFO .
  • “We realized approximately $11M of our expected $11M in annualized savings… well ahead of schedule in 2025” — James Rinn, CFO .
  • “We will have quite a lot of exciting developments to announce over the next seven weeks… fundraising platform PSQ Impact, and our private label credit card program” — Michael Seifert, CEO .

Q&A Highlights

  • Attach rates and retention: Majority of enterprise clients use bundled payments + credit + marketing services; deeper operational integration drives stickiness and retention .
  • 2026 guidance basis: ≥$32M reflects existing product set; private‑label credit cards and other new products are not yet baked into the forecast .
  • Top‑line drivers: Strong majority of growth from new customer onboarding; pipeline throughput improved; retail season supports Q4 outlook .
  • Crypto treasury & volatility: Management balancing new initiatives with operating efficiency; crypto treasury via IDX progressing; focus on lean execution and unit economics .

Estimates Context

  • Wall Street consensus (S&P Global) for PSQH revenue and EPS for Q3 2025 and adjacent periods was unavailable; as a result, beat/miss vs. Street cannot be assessed. The company’s 10% beat vs. its own guidance serves as the primary benchmark this quarter .
  • Target price consensus and coverage also appeared unavailable in S&P Global at the time of review.

Key Takeaways for Investors

  • Execution on FinTech pivot is working: accelerating payments and credit revenues with improving unit economics and sticky bundled adoption should support Q4 seasonality and 2026 growth targets .
  • Mix shift will be a near‑term margin headwind: payments growth compresses FinTech gross margin; investors should watch monetization per merchant and pricing/MTL progress to balance mix .
  • Cost discipline is real: material G&A reductions and full capture of annualized savings underpin narrowing losses even as FinTech scales .
  • Strategic optionality: monetizing EveryLife and Marketplace, plus potential Tandym IP acquisition and new product launches (PSQ Impact, private‑label cards), add catalysts into year‑end and early 2026 .
  • Liquidity watch: cash and equivalents declined to $12.3M with $4.6M drawn on the revolver; retention of receivables on balance sheet aims to enhance yield but requires careful cash management .
  • With Street estimates unavailable, trading focus should center on company guidance, sequential FinTech KPIs (payments, credit), onboarding cadence, and progress on asset sales and licensing (MTLs) .

Additional Relevant Q3 Materials

  • EveryLife Women product launch (Brands) highlights ongoing brand activity while the segment is being monetized; reinforces product pipeline and market engagement ahead of anticipated sale .
  • Negotiations to acquire Tandym IP assets (consideration: $5.75M in Class A shares plus up to $1.0M cash) reflect continued investment in FinTech capabilities; no assurance of close .