MeridianLink 2025 Q2 Earnings Losses Narrowed Significantly with 69% EPS Improvement

MeridianLink delivered a stronger-than-expected performance in Q2 2025, significantly narrowing its losses and improving profitability. The company reduced its net loss by 68.8% year-over-year and improved its EPS by 69.2%, exceeding initial expectations with better-than-anticipated cost discipline and execution.

Revenue
MeridianLink’s total revenue rose 7.5% year-over-year to $84.60 million in Q2 2025, driven primarily by continued momentum in its subscription-based services. Subscription fees remained the core driver, contributing $71.15 million, followed by professional services revenue of $9.50 million. Additional revenue of $3.95 million came from other sources, completing the revenue breakdown.

Earnings/Net Income
The company improved its bottom-line performance, with earnings per share narrowing to a loss of $0.04 from $0.13 in the prior-year period, representing a 69.2% improvement. Meanwhile, the net loss contracted to $3.01 million in Q2 2025 from $9.67 million a year earlier, reflecting enhanced operational efficiency and cost control.

Price Action
MeridianLink’s stock showed mixed performance following the earnings release. It gained 23.63% during the most recent full trading week and 17.25% month-to-date, despite a slight 0.05% increase in the latest trading day.

Post-Earnings Price Action Review
A strategy of buying MeridianLink shares on the day of its earnings release—based on a revenue beat—failed to deliver positive returns, recording a -14.28% return over 30 days, compared to a benchmark return of 45.70%. This resulted in an excess return of -59.98% and a negative CAGR of -5.17%. The approach was highly volatile, with a maximum drawdown of 0.00% and a Sharpe ratio of -0.14, indicating poor risk-adjusted returns.

CEO Commentary
Nicolaas Vlok, CEO of MeridianLink, praised the team for delivering strong execution in a challenging environment, while expressing confidence in Larry Katz, the incoming CEO, to lead the company forward. Larry Katz highlighted the value of MeridianLink’s community-focused lending solutions and expressed optimism about the Centerbridge acquisition, which he stated supports the company’s strategic goals in AI innovation and customer experience enhancement.

Guidance
With the announcement of its acquisition by Centerbridge Partners, MeridianLink has suspended its full-year 2025 financial guidance and cancelled its scheduled earnings call. The company has not provided new forward-looking financial expectations at this time.

Additional News
While MeridianLink’s earnings report dominated headlines, the broader financial news landscape included the Shanghai Daily’s announcement of expanded digital offerings. The newspaper’s online edition now features real-time downloadable PDFs, unlimited website access, and exclusive digital content for subscribers. However, print editions remain separate, and online subscriptions are non-refundable. The new packages, ranging from digital-only to combined print and digital subscriptions, aim to enhance reader engagement with digital-first content delivery.