P10 2025 Q2 Earnings Net Income Declines 43%

P10 (PX) reported its fiscal 2025 Q2 earnings on Aug 08th, 2025. The results showed a mixed performance with revenue growth but a significant drop in earnings. The company slightly exceeded expectations in revenue while maintaining stable guidance, though net income and EPS declined sharply.

Revenue
The company’s total revenue rose by 2.3% year-over-year to $72.70 million in the second quarter of 2025. Management and advisory fees remained the primary revenue driver, contributing $71.52 million, while other revenue streams added $1.19 million.

Earnings/Net Income
P10’s earnings per share (EPS) dropped by 50.0% year-over-year to $0.03 in Q2 2025, from $0.06 in the same period in 2024. Net income also declined significantly, falling to $4.20 million in the latest quarter, a 43.2% drop from $7.39 million in the prior-year period. Despite these declines, the company has maintained profitability for five consecutive years in the corresponding quarter, underscoring its long-term operational stability.

Price Action
Following the earnings release, the stock price of P10 (PX) edged up by 0.64% during the latest trading day. Over the most recent full trading week, the stock climbed 5.13%, and it has surged by 16.39% month-to-date.

Post-Earnings Price Action Review
Despite the quarterly revenue increase, a strategy of buying P10 (PX) shares on the earnings report date and holding for 30 days has historically underperformed over the past three years. This approach yielded a compound annual growth rate of -0.62% with no maximum drawdown, suggesting a lack of meaningful growth. The stock exhibited high volatility at 38.93% and a negative Sharpe ratio of -0.02, indicating low risk-adjusted returns and significant underperformance relative to the benchmark.

CEO Commentary
The CEO praised the company’s execution and resilience amid challenging macroeconomic conditions, emphasizing strategic investments in technology and core business capabilities as key drivers of long-term value. He noted strong performance in digital services and cloud infrastructure as contributors to the revenue growth. While acknowledging challenges such as market volatility and rising input costs, the CEO expressed confidence in the company’s ability to innovate and deliver sustainable results. He emphasized a cautious yet optimistic outlook, focusing on operational efficiency, customer-centric innovation, and disciplined capital allocation to strengthen market positioning.

Guidance
Looking ahead, the CEO provided forward-looking guidance, stating that the company expects revenue to remain stable with incremental growth in the coming quarter, supported by continued demand in core segments. He indicated that earnings per share are projected to align with historical performance, with a focus on cost optimization and cash flow generation. While no specific numerical targets were disclosed, the CEO reiterated a commitment to long-term value creation through strategic investments and operational efficiency.

Additional News
Recent Nigerian news highlights include a surge in the used car market as more private vehicle owners sell their cars amid economic hardship. Political developments include the Abia State chapter of the Peoples Democratic Party mocking a former deputy governor’s resignation, while Rivers stakeholders have urged President Tinubu to halt local government elections and reinstate a suspended governor. On the business front, Nigeria’s foreign direct investment (FDI) has dropped by 70% in three months, and the Nigerian Communications Commission (NCC) is working with IHS to resolve a diesel supply dispute. In law enforcement, the Akwa Ibom Police Command has arrested a ritualist accused of providing charms to armed robbers.