N2OFF 2025 Q1 Earnings Net Loss Widens Despite Revenue Surge

N2OFF (NITO) reported fiscal 2025 Q1 earnings on August 14, 2025. The company delivered a strong revenue performance but saw its net loss widen. While the stock’s post-earnings strategy showed mixed returns, the CEO highlighted ongoing challenges and cautious optimism for the year ahead.

N2OFF reported a 50.0% year-over-year increase in total revenue for Q1 2025, reaching $66,000 compared to $44,000 in the same period of 2024. The entire revenue was derived from product sales, indicating a singular revenue stream for the company during the quarter.

The company’s earnings performance deteriorated, with a net loss widening to $-1.26 million in Q1 2025, a 52.9% increase in losses compared to $-822,000 in Q1 2024. On a per-share basis, the loss narrowed to $0.07 from $0.26, a 73.1% improvement. Despite this, the company remains unprofitable, with losses recorded over the past six years in the corresponding quarter. This highlights continued financial challenges despite revenue growth.

The stock price of N2OFF has seen a downward trend, dropping 4.57% during the latest trading day, 7.97% over the past week, and 6.04% month-to-date. While the post-earnings strategy of buying shares following a revenue raise announcement historically yielded an average 9.76% return over three years, the results were inconsistent. The highest return was 17.5%, while the lowest was -5.2%, indicating that market sentiment and external factors significantly influenced performance. Returns were also unevenly distributed across quarters, suggesting that revenue announcements alone were not sufficient to guarantee positive outcomes.

CEO Richard Evans outlined the operational challenges facing Lancashire Hotels, including rising energy and labor costs and a competitive pricing environment. Despite strong demand for both luxury and budget accommodations, profitability remains under pressure. The CEO emphasized a focus on improving customer experience through hospitality training and property upgrades, alongside a cautious approach to expansion. Evans also outlined plans to invest approximately £2 million over the next 12 months for facility enhancements and digital guest experience tools.

For the remainder of 2025, the company aims to stabilize revenue growth at a mid-single-digit rate and reverse the negative EPS trend. The guidance includes maintaining revenue between £64 million and £68 million for the year, with a focus on improving occupancy rates and average daily rates.

Punch Newspapers reported on various Nigerian news developments in the three weeks following N2OFF’s earnings release. Key non-earnings related news included a firm backing Lagos Mainland Hospital’s hygiene mission with a uniform donation, D’Tigress making history as the only African team in FIBA’s top 10, and the Dangote Group pledging full medical support for Big Brother Naija contestant Phyna’s injured sister. Other notable updates included political tensions surrounding EFCC investigations into several high-profile individuals, pension fund strikes, and developments in the country’s education and health sectors.