Identiv | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 5.009 M

Revenue: As of FY2025 Q3, the actual value is USD 5.009 M, beating the estimate of USD 5 M.

EPS: As of FY2025 Q3, the actual value is USD -0.15, beating the estimate of USD -0.2167.

EBIT: As of FY2025 Q3, the actual value is USD -6.891 M.

Segment Revenue

Americas: $2.6 million for Q3 2025, $6.6 million for the nine months ended September 30, 2025, representing a decrease of 7% and 27% respectively compared to the same periods in 2024.
Europe and the Middle East: $1.2 million for Q3 2025, $5.0 million for the nine months ended September 30, 2025, representing a decrease of 25% and 20% respectively compared to the same periods in 2024.
Asia-Pacific: $1.2 million for Q3 2025, $3.7 million for the nine months ended September 30, 2025, representing a decrease of 44% and 20% respectively compared to the same periods in 2024.

Operational Metrics

Net Revenue: $5.0 million for Q3 2025, $15.3 million for the nine months ended September 30, 2025, representing a decrease of 23% compared to the same periods in 2024.
Gross Profit: $534,000 for Q3 2025, $192,000 for the nine months ended September 30, 2025, representing an increase of 124% for Q3 and a decrease of 86% for the nine months compared to the same periods in 2024.
Gross Profit Margin: 11% for Q3 2025, 1% for the nine months ended September 30, 2025, compared to 4% and 7% respectively for the same periods in 2024.
Research and Development Expenses: $828,000 for Q3 2025, $2.5 million for the nine months ended September 30, 2025, representing a decrease of 25% and 16% respectively compared to the same periods in 2024.
Selling and Marketing Expenses: $1.4 million for Q3 2025, $4.3 million for the nine months ended September 30, 2025, representing a decrease of 17% and 7% respectively compared to the same periods in 2024.
General and Administrative Expenses: $3.5 million for Q3 2025, $9.7 million for the nine months ended September 30, 2025, representing a decrease of 50% and 35% respectively compared to the same periods in 2024.
Restructuring and Severance Expenses: $402,000 for Q3 2025, $1.1 million for the nine months ended September 30, 2025, primarily associated with shutdown related activities and vacated production space at the Singapore manufacturing facility.
Loss from Continuing Operations: - $5.6 million for Q3 2025, - $17.4 million for the nine months ended September 30, 2025, compared to - $9.6 million and - $21.3 million respectively for the same periods in 2024.
Net Loss from Continuing Operations: - $3.5 million for Q3 2025, - $14.3 million for the nine months ended September 30, 2025, compared to - $9.3 million and - $21.6 million respectively for the same periods in 2024.

Cash Flow

Net Cash Used in Operating Activities: - $9.7 million for the nine months ended September 30, 2025, compared to - $9.5 million for the same period in 2024.
Net Cash Provided by (Used in) Investing Activities: - $607,000 for the nine months ended September 30, 2025, compared to $142.5 million for the same period in 2024.
Net Cash Used in Financing Activities: - $398,000 for the nine months ended September 30, 2025, compared to - $11.7 million for the same period in 2024.

Future Outlook and Strategy

Core Business Focus: The company is focusing on developing highly engineered and specialized IoT inlays, tags, and labels for applications in the healthcare industry and other high-value end markets. The strategy includes prioritizing higher margin opportunities with existing customers and channel partners, and exiting low-margin business opportunities.
Non-Core Business: The company completed the sale of its Physical Security Business in 2024, which historically represented the majority of its revenues. The company continues to provide transition services to the buyer for a period of 12 to 18 months after the transaction closing date.
Priority: The company aims to improve gross profit margins by reducing fixed costs associated with the Singapore facility and improving utilization of the Thailand production facility. The company expects gross product margins to continue to increase in the fourth quarter of 2025.