Executive Summary

Q1 2025 revenue was $31.3M, roughly in line with guidance and slightly above the $31.1M Wall Street consensus; gross margin reached a record 25.5–26%, up ~250–300 bps year over year, and non-GAAP operating loss improved to ~$0.4M, well ahead of guidance (<$1.0M) . Revenue beat consensus modestly while EPS missed given limited coverage (one estimate) (S&P Global: see Estimates Context).
Sequentially, revenue dipped ~2% vs Q4 2024 ($32.0M) while gross margin expanded from 22% to 25.5–26%; GAAP operating loss improved from -$4.6M to -$2.4M, and non-GAAP operating loss improved from -$3.0M to -$0.4M .
Management guided Q2 2025 revenue to $30–$33M and non-GAAP operating loss to be less than $0.5M; they expect positive sequential revenue growth in Q3 and aim to sustain non-GAAP operating breakeven and move closer to positive cash flow during 2025 .
Strategic/capital structure actions: new $20M ABL facility with MidCap and second-lien extension to July 31, 2026; 1-for-12 reverse stock split to regain Nasdaq compliance—both support liquidity and listing status .

What Went Well and What Went Wrong

What Went Well

Record gross margin and cost discipline: “record gross margin of 26%… GAAP operating loss improvement of 71% and non-GAAP operating loss improvement of 93%… ahead of our guidance” . CFO added gross margin reached 25.5% from 23% YoY, driven by mix and tech optimizations controlling service provider costs .
Non-GAAP breakeven milestone and guidance beat: “for the first time… Urgently achieved non-GAAP operating breakeven during the month of March” and Q1 non-GAAP operating loss (~$0.4M) beat the < $1.0M guidance .
Customer/partner momentum: renewal with one of the largest global fleet management companies; VIP programs driving higher satisfaction; positioning to re-enter insurance via dual-source Champion–Challenger model .

What Went Wrong

Top-line pressure continued: Revenue down 22% YoY to $31.3M, primarily from a 2024 nonrenewal and reduced Otonomo-related revenue; offset only partially by new/existing partner volume/rate increases .
EPS loss remained sizable: GAAP net loss of -$5.5M and EPS of -$4.69; interest expense was -$3.28M, highlighting debt-servicing headwinds despite the improved capital structure .
Cash declined: Cash and equivalents fell to $6.4M from $14.2M at year-end, partly due to ~$3M paid for accrued back-end debt fees; working capital changes also contributed .

Financial Results

Sequential and KPI Comparison

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$36.246	$32.030	$31.272
Gross Profit ($USD Millions)	$7.765	$7.113	$7.989
Gross Margin (%)	21%	22%	25.5%–26.0%
GAAP Operating Expenses ($USD Millions)	$13.656	$11.728	$10.436
GAAP Operating Loss ($USD Millions)	$(5.891)	$(4.615)	$(2.447)
Non-GAAP Operating Expenses ($USD Millions)	$10.710	$10.100	$8.363
Non-GAAP Operating Loss ($USD Millions)	$(2.945)	$(2.987)	$(0.374)
Diluted EPS ($USD)	$(0.79)	$(0.65)	$(4.69)
Dispatches (Units)	~219,000	~201,000	~189,000
Consumer Satisfaction (Stars)	4.5	4.5	4.6

Note: Gross margin was cited as 26% in the press release and 25.5% on the call; both tie to $7.989M gross profit on $31.272M revenue (25.6% mathematically) .

Year-over-Year Comparison (Q1 2025 vs Q1 2024)

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$40.092	$31.272
Gross Profit ($USD Millions)	$9.351	$7.989
Gross Margin (%)	23%	25.5%–26.0%
GAAP Operating Expenses ($USD Millions)	$17.699	$10.436
GAAP Operating Loss ($USD Millions)	$(8.348)	$(2.447)
Non-GAAP Operating Expenses ($USD Millions)	$14.454	$8.363
Non-GAAP Operating Loss ($USD Millions)	$(5.103)	$(0.374)
Diluted EPS ($USD)	$(11.69)	$(4.69)

Consensus vs Actual (Q1 2025)

Metric	Q1 2025 Consensus	Q1 2025 Actual
Revenue ($USD)	$31,100,000*	$31,272,000
Primary EPS ($USD)	$(2.88)*	$(4.69)
# of Estimates (EPS / Revenue)	1* / 1*	—

Values marked with * retrieved from S&P Global.

Balance Sheet Highlights

Metric	Dec 31, 2024	Mar 31, 2025
Cash and Equivalents ($USD Thousands)	$14,179	$6,410
Accounts Receivable, net ($USD Thousands)	$22,890	$23,506
Total Assets ($USD Thousands)	$54,071	$46,432
Current Portion of Long-Term Debt, net ($USD Thousands)	$14,257	$13,198
Long-Term Debt, net ($USD Thousands)	$39,883	$40,381
Total Liabilities ($USD Thousands)	$85,741	$82,510
Stockholders’ Deficit ($USD Thousands)	$(31,670)	$(36,078)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD)	Q2 2025	—	$30M–$33M	New
Non-GAAP Operating Loss ($USD)	Q2 2025	—	< $500K	New
Non-GAAP Operating Loss ($USD)	Q1 2025	< $1M	Actual: ~$374K	Beat
Sequential Revenue Growth	Q3 2025	—	Expect positive sequential growth	New qualitative
Non-GAAP Operating Breakeven	Mid-2025	Target breakeven	Maintain target	Maintained
Shares Outstanding	Q2 2025	—	~1.3M expected at quarter-end	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 2024)	Current Period (Q1 2025)	Trend
AI/dynamic pricing & tech optimization	Introduced yield-based dynamic pricing; AutoTech award; location aggregation testing; reduced support costs via BPO/tech	Margin gains attributed to mix and tech optimizations (service provider cost control); continued platform enhancements and $1.1M capitalized software	Positive execution; expanding impact
Customer renewals/expansions	Multiple renewals with OEMs, fleets, and rental; new D2C/insurance aggregator; RV lifestyle brand launch	Renewal with largest global fleet mgmt company; expanded VIP programs lifting satisfaction	Sustained renewal momentum
Insurance dual-source (Champion–Challenger)	Strategy discussed; re-entry in insurance vertical	Expect insurers to move to dual providers; new VP Sales hired targeting mid-market	Emerging opportunity
Capital structure/liquidity	In Q4: working toward ABL; debt maturities addressed	Closed $20M ABL with MidCap; extended second lien to 7/31/26	Improved flexibility
Headcount/OpEx leverage	46–48% headcount reduction post-Otonomo; BPO mix optimization	Further OpEx declines; still “room to go” in 2025, albeit smaller scale	Continuing tailwind
Nasdaq compliance	Notified of non-compliance (min bid) in late 2024 [18 in List]	1-for-12 reverse split effective 3/17/25 to regain compliance	Addressed/listing supported

Management Commentary

CEO: “We delivered revenue in line with our expectations and record gross margin of 26%… GAAP operating loss improvement of 71% and non-GAAP operating loss improvement of 93%… ahead of our guidance for non-GAAP operating loss of $1.0 million… we expect to deliver positive sequential revenue growth during the third quarter, sustain our non-GAAP operating break-even and move closer to positive cash flow” .
CEO: “For the first time… Urgently achieved non-GAAP operating breakeven during the month of March… Sustaining non-GAAP operating loss breakeven and moving the company closer to cash flow positive will be an ongoing focus for us this year” .
CFO: “Gross margin for the first quarter was 25.5%… The increase… is primarily related to the mix of service dispatches and our continued technology optimizations, allowing us to better manage our service provider costs” .
CFO: “As of March 31, 2025, Urgently had cash and cash equivalents of $6.4 million and a net principal debt balance of $56.7 million… completed our new credit agreement for an asset-based revolving credit facility for up to $20 million with MidCap Financial… extended our credit agreement with Highbridge… through July 31, 2026” .

Q&A Highlights

Growth and margin drivers: Renewals (largest global fleet mgmt company) and insurance dual-source push; CEO emphasized readiness after unit economics work and technology scale .
OpEx trajectory: Majority of declines were Otonomo-related, but core Urgently reductions continue; expect slight absolute OpEx declines through 2025, with caution that “first nondigital calls” in insurance could run through margin .
Cash/wc dynamics: ~$3M back-end debt fees paid early Q1 reduced accrued liabilities and cash; working capital otherwise normalized .
Revenue cadence: Sequential growth starting Q3 expected to be modest unless material contract wins trigger updates; Q1 guidance flattish vs Q4 due to a larger contract termination and smaller ramp from new adds .

Estimates Context

Q1 2025 revenue modestly beat consensus ($31.27M actual vs $31.10M consensus*), while EPS missed ($-4.69 actual vs $-2.88 consensus*); coverage was limited (one estimate each*) . Values marked * retrieved from S&P Global.
Given the non-GAAP operating improvement and record margins, estimate revisions may focus on margin trajectory and reduced non-GAAP losses; however, debt service and cash balances could temper EPS upgrades near term .

Key Takeaways for Investors

Margin expansion and operating leverage are the primary positives: gross margin at 25.5–26% and non-GAAP operating loss near breakeven demonstrate tangible cost/technology progress .
Top-line recovery timing: management expects positive sequential revenue growth in Q3 as contracts ramp and “noncomparable quarters” are cycled; near-term revenue remains range-bound ($30–$33M) .
Capital structure/liquidity: the $20M ABL and second-lien extension reduce near-term refinancing risk and support working capital; debt service still constrains EPS given interest expense burden .
Insurance dual-source opportunity: shifting industry procurement from single-source to dual-source could open a re-entry vector; watch for mid-market insurer wins and potential margin effects from “first call” requirements .
Customer satisfaction and VIP programs: 4.6-star satisfaction and VIP service offerings support retention and pricing power, aiding margin resilience .
Operational discipline: continued slight OpEx declines expected through 2025, with room for efficiencies beyond Otonomo-related reductions .
Near-term trading lens: narrative catalysts include sustained non-GAAP breakeven, Q2 non-GAAP loss < $500K, and confirmation of Q3 sequential growth; risks include cash/interest expense dynamics and timing of insurance/partner ramps .

Urgent.ly Inc. (ULY)·Q1 2025 Earnings Summary