CID 2025 Q3 Earnings Net Loss Widens by 58.6% Despite EPS Improvement

CID(DAIC), ranked by market capitalization, reported fiscal 2025 Q3 earnings on Nov 13th, 2025. The results reflected a significant revenue surge but a broader net loss, with management emphasizing long-term strategic investments and 2026 growth prospects.

Revenue

The total revenue of CID increased by 853.6% to $778,482 in 2025 Q3, up from $81,636 in 2024 Q3. The company primarily generates revenue from hardware sales (bridges, gateways, and labels) and is in the early stages of developing its SaaS product.

Earnings/Net Income

CID narrowed losses to $0.15 per share in 2025 Q3 from a loss of $0.22 per share in 2024 Q3 (31.8% improvement). However, the company's net loss widened to $-4.22 million in 2025 Q3, representing a 58.6% increase from the $-2.66 million loss in 2024 Q3. While the EPS improvement is positive, the widening net loss indicates significant operational challenges.

Price Action

The stock price of CID has dropped 5.64% during the latest trading day, has climbed 6.81% during the most recent full trading week, and has tumbled 9.71% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CID shares on the date of its revenue raise announcement and holding for 30 days showed poor performance over the past three years. The cumulative return was -46.4%, significantly underperforming the market. This indicates the strategy was not profitable, suggesting investors may want to reconsider their approach to reacting to earnings announcements.

CEO Commentary

Ed Nebrotsky, CEO of Dart AI, highlighted the company’s progress as a public company, emphasizing the first distribution order shipped and production ramping in Puerto Rico. He underscored strategic investments in leadership, including Miles Bradley for global partner ecosystem expansion and Robin DeLia to strengthen finance operations. Nebrotsky stressed technological differentiation via hybrid IoT/AI solutions and a channel-first go-to-market strategy, enabling rapid scale. While acknowledging the long road ahead, he expressed optimism about 2026 growth, driven by SaaS adoption, multi-tenant platform development, and cybersecurity certification. The tone balanced cautious optimism, recognizing the need to maintain strategic investments while scaling efficiently.

Guidance

Charlie Maddox, CFO, outlined expectations for accelerating SaaS adoption and recurring revenue, with improved margins as manufacturing scales. He referenced a non-binding $8M note and $50M SEPA to fund growth while managing dilution. While no explicit 2025 Q4 metrics were provided, he emphasized measuring progress via bookings, SaaS growth, and customer acquisition discipline. Forward-looking statements included “ongoing ramp of continued shipments” as the commercial pipeline matures and “accelerating customer go-lives” in 2026.

Additional News

CID Holdco, Inc. released its Form 10-Q for Q3 2025, revealing a 853.6% revenue increase to $778,482 and a $4.22 million net loss. The company is expanding its SaaS product development and manufacturing in Puerto Rico. Dot Ai, a subsidiary, emphasized innovation in IoT and AI solutions. Meanwhile, CEO Ed Nebrotsky highlighted strategic leadership hires and a channel-first strategy to drive 2026 growth.