MIND CTI Reports Q1 2025 Results: Revenue Down 14%, Net Income Down 62%

MIND CTI reported Q1 2025 revenues of $5.0 million, down from $5.8 million in Q1 2024. Operating income was $0.4 million, or 7% of total revenues, compared to $1.2 million, or 22% in Q1 2024. Net income was $0.5 million, or $0.02 per share, compared to $1.3 million, or $0.07 per share in Q1 2024. The decline in operating income is attributed to an allowance for credit loss and costs related to the Aurenz acquisition. The company expects a significant negative impact on its 2025 revenues, net income, and dividend distribution.

MIND CTI (NASDAQ: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product-based solutions, has reported its Q1 2025 financial results, revealing a decline in performance compared to the same period last year. The company reported revenues of $5.0 million, a decrease from $5.8 million in Q1 2024. Operating income fell to $0.4 million, or 7% of total revenues, from $1.2 million, or 22% in the prior year. Net income dropped to $0.5 million, or $0.02 per share, compared to $1.3 million, or $0.07 per share in Q1 2024 [1].

The decline in operating income is attributed to an allowance for credit loss and costs related to the Aurenz acquisition, which was completed during the quarter. Management warned of expected significant negative impacts on 2025 revenues and income due to multiple challenges in the customer care and billing software segment [1].

Revenue distribution showed 61% from Europe (including 35% from messaging in Germany), 33% from the Americas, and 6% from other regions. By segment, customer care and billing software contributed 50%, enterprise messaging 35%, and call accounting software 15% [1].

The company declared a dividend of $0.22 per share, totaling approximately $4.5 million. The dividend distribution was presented in the balance sheet as of March 31, 2025, among other current liabilities [1].

The company held its Annual General Meeting of Shareholders on May 6, 2025, and all proposed resolutions were approved [1].

Despite the challenges, MIND CTI maintains a strong cash position and ongoing positive cash flow. The company believes that its initiatives are the right steps to take in seeking to preserve its current business and grow in the future [1].

References:
[1] https://www.stocktitan.net/news/MNDO/mind-cti-reports-first-quarter-2025-nszexa038r4e.html