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Urgent.ly Inc. (ULY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $31.7M, down 8% YoY but modestly up sequentially; gross margin improved to 25% (+400 bps YoY). GAAP operating loss improved 74% YoY to $2.2M; non-GAAP operating loss narrowed to $0.2M, better than guidance .
  • Versus estimates: revenue modestly beat ($31.7M vs $31.0M*) while EPS missed (GAAP loss per share $(4.50) vs Primary EPS consensus -$2.70*); EBITDA missed (-$0.90M* vs -$0.60M*) — reflecting mix and ongoing transition post-Autonomo.
  • Management reiterated confidence in breakeven trajectory, targeting non-GAAP operating breakeven in Q3 2025; sequential revenue growth expected as insurance and OEM wins ramp end-Q3/early-Q4 .
  • Strategic catalysts: AI-driven SPARK rollout showing measurable service time reductions and strong CSAT (4.7/5); contract renewals/expansions and re-entry into insurance with a champion-challenger approach should support growth in 2H25 .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded to 25% from 21% YoY, driven by mix and technology optimizations; gross profit rose 8% YoY despite lower revenue .
  • Non-GAAP operating loss improved to $0.2M, better than guidance ($0.5M), marking best non-GAAP performance to date and positioning for breakeven in Q3 .
  • Management highlighted AI leadership: “Our digitally native platform, which leverages A.I. and machine learning, has given us substantial operating scale… using temporal, spatial and network data” ; SPARK rollout reduced wait times materially (e.g., Miami Beach -20 minutes) .

What Went Wrong

  • Revenue declined 8% YoY due to a previously disclosed OEM nonrenewal and autonomous-related reductions; interest expense and debt load remain material (principal debt $55.3M at Q2) .
  • EPS was below Street given GAAP loss per share of $(4.50); EBITDA underperformed consensus as mix skewed to lower-margin jobs .
  • One-time compliance-related autonomous costs impacted Q2 OpEx; CFO separation disclosed prior to the call adds near-term leadership transition risk (CEO acting as PFO) .

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025Q2 2025 Consensus
Revenue ($USD Millions)$34.537 $32.030 $31.272 $31.687 $31.000*
Gross Margin %21% 22% 26% 25% N/A
Loss per Share (Basic & Diluted, $)$(0.87) $(0.65) $(4.69) $(4.50) Primary EPS: -$2.70*
EBITDA ($USD Millions)N/AN/A-$1.086*-$0.896*-$0.600*
  • Values with asterisk (*) retrieved from S&P Global.

KPIs

KPIQ2 2024Q4 2024Q1 2025Q2 2025
Dispatches (units)~205,000 ~201,000 ~189,000 ~191,000
Customer Satisfaction Score (out of 5)4.5 4.5 4.6 4.7

Non-GAAP Operating Metrics

Metric ($USD Millions)Q2 2024Q1 2025Q2 2025
Non-GAAP OpEx$13.5 $8.36 $8.13
Non-GAAP Operating Loss$(6.17) $(0.374) $(0.199)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ2 2025$30M–$33M Actual $31.7M Achieved within range
Non-GAAP Operating LossQ2 2025< $0.5M Actual $(0.2)M Raised (better than guided)
RevenueQ3 2025—$31M–$34M New guidance issued
Non-GAAP Operating BreakevenQ3 2025“Mid-2025” target Maintain breakeven in Q3 Refined timing (maintained)
Capitalized SoftwareFY 2025~consistent with prior~$1.5M expected in 2025 Maintained expectation

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/Technology initiativesDynamic pricing recognized; platform upgrades, Autotech award SPARK AI analyzer rollout; measurable wait-time reductions; AI/ML scale emphasized Strengthening
Contracts: Renewals/ExpansionsRenewed ~½ run-rate revenue; new D2C aggregator; RV brand launched 2025 renewals in rideshare and OEM; 40% of 2025 renewals completed; more negotiations in flight Continuing
Insurance re-entryStrategy and VP Sales hire; champion-challenger model Signed premium insurance provider; pipeline outreach to ~50k industry contacts Accelerating
Margin and OpEx discipline160 bps FY24 GM improvement; significant OpEx reductions GM at 25%; non-GAAP OpEx down 40%; one-time autonomous costs noted Sustained improvements
Capital structureMidCap $20M ABL, Highbridge extension ATM program set up; principal debt ~$55.3M at Q2 Liquidity optionality increasing
Leadership/Finance orgCFO Tim Huffmyer in Q1 CFO separation; CEO acting as PFO; Controller as PAO Transition

Management Commentary

  • “We delivered revenue of $31,700,000… our eighth consecutive quarter where we delivered on our revenue guidance commitment… gross margin of 25%… and continued improvement in reducing both non‑GAAP operating expense and non‑GAAP operating loss.”
  • “Our digitally native platform… leveraging AI and machine learning… creating predictive models… using temporal, spatial and network data.”
  • “Non‑GAAP operating loss for the quarter was approximately $200,000… better than our guidance of about $500,000… approaching our non‑GAAP operating loss milestone demonstrates our continued positive momentum.”
  • “SPARK… leverages real-time and historical data to identify top-performing providers and optimize operational zones… Miami Beach wait times reduced by over twenty minutes on average.”

Q&A Highlights

  • Revenue ramp from new insurance/OEM wins expected end‑Q3/begin‑Q4; aiming for 20–30% growth trajectory post-autonomous digestion; seasonality curve flattening due to AI initiatives .
  • Renewals: ~40% of 2025 renewals completed; contracts progressing across OEM and rideshare .
  • OpEx: Q2 included a one-time autonomous compliance cost; ongoing non-GAAP OpEx expected minimal; breakeven maintained in Q3 .
  • Nonrecurring costs: Autonomous-related items largely complete; only small residuals expected depending on future transactions .

Estimates Context

  • Revenue modest beat: $31.687M actual vs $31.000M consensus for Q2 2025*; Q1 2025 also essentially in line ($31.272M actual vs $31.100M*) — consistent with eight quarters of guidance delivery .
  • EPS miss: GAAP loss per share $(4.50) vs Primary EPS consensus -$2.70* for Q2 2025 .
  • EBITDA miss: Q2 2025 actual -$0.896M* vs -$0.600M* consensus; Q1 2025 actual -$1.086M* vs -$1.800M* consensus (beat). Coverage remains limited (two estimates for Q2/Q3).
  • Values retrieved from S&P Global.

Key Takeaways for Investors

  • Gross margin expansion and non-GAAP operating discipline are tangible and durable; the Q2 non-GAAP operating loss beat suggests breakeven feasibility in Q3, a potential stock catalyst if sustained .
  • Revenue trajectory should improve in 2H as insurance and OEM contracts ramp, but pace depends on onboarding and partner schedules; watch end‑Q3/early‑Q4 volumes .
  • The EPS/EBITDA misses vs consensus reflect mix and interest burden; near-term equity sensitivity will hinge on operating breakeven delivery and evidence of margin resilience .
  • AI/ML capabilities (SPARK) are driving measurable service improvements and higher CSAT; technology differentiation underpins renewals and new wins .
  • Balance sheet remains leveraged (principal debt ~$55.3M); ATM provides flexibility, but interest expense is a headwind — monitor capital formation and potential refinancing actions .
  • Organizational transition (CFO separation) bears watching; current finance leadership asserts continuity with focus on profitable growth .
  • Near-term positioning: constructive into Q3 on breakeven and contract ramps; medium-term thesis hinges on scaling insurance/OEM growth with disciplined unit economics and AI-enabled margin enhancement .