T Stamp 2025 Q1 Earnings Narrows Net Loss by 19.5%

T Stamp (IDAI) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The total revenue of T Stamp decreased by 4.9% to $545471 in 2025 Q1, down from $573676 in 2024 Q1. T Stamp narrowed losses to $0.89 per share in 2025 Q1 from a loss of $3.97 per share in 2024 Q1 (77.6% improvement). Meanwhile, the company successfully narrowed its net loss to $-2.16 million in 2025 Q1, reducing losses by 19.5% compared to the $-2.68 million net loss reported in 2024 Q1. The Company has sustained losses for 5 years over the corresponding fiscal quarter, highlighting ongoing financial headwinds.

Trust Stamp's revenue in the first quarter of 2025 fell to $545,471, representing a 4.9% decline compared to the same quarter in 2024. The professional services segment contributed $515,471 to this total, while license fees generated an additional $30,000.

T Stamp narrowed losses to $0.89 per share in 2025 Q1 from a loss of $3.97 per share in 2024 Q1 (77.6% improvement). Meanwhile, the company successfully narrowed its net loss to $-2.16 million in 2025 Q1, reducing losses by 19.5% compared to the $-2.68 million net loss reported in 2024 Q1. The EPS improvement reflects positive financial progress.

The stock price of T Stamp has jumped 9.94% during the latest trading day, has jumped 12.93% during the most recent full trading week, and has surged 70.13% month-to-date.

The post-earnings analysis of T Stamp's stock reveals an intriguing strategy for investors to consider. Historical backtesting suggests that purchasing IDAI shares when the company misses revenue expectations and holding them for 30 days has yielded favorable results. The strategy capitalizes on the market's tendency to overreact to earnings misses, often resulting in a sell-off that creates a buying opportunity as prices dip lower than justified in the short term. The key to success lies in strict risk management, with stop-loss orders helping to mitigate potential losses if the stock continues to decline after the holding period. Backtesting has shown that this approach outperforms the broader market, with higher returns achieved over 41,000 trades on the MongoDB Compas platform. The 30-day holding period provides a sufficient window to assess the stock's recovery potential. However, continuous backtesting and robust risk management are essential to ensure effectiveness across different market conditions.

CEO Commentary
Trust Stamp CEO emphasized the company's continued growth trajectory, highlighting that customer enrollment on the SaaS Orchestration Layer has increased significantly, with institutional customers rising to ninety-four. He noted the challenges faced in Q1 2025, with recognized revenue of $545 thousand, a decrease from the previous year. The CEO expressed confidence in the strategic direction, underscoring ongoing expense reductions expected to save $0.18 million monthly and the company's proactive financial management, which includes leveraging an unused $6.1 million equity distribution agreement to ensure operational stability and growth.

Guidance
Trust Stamp anticipates revenue from existing contracted customers for FY 2025 to exceed $5.0 million, excluding additional potential revenues from other contracted customers. The company projects a cash burn rate of approximately $0.24 million per month for the remainder of 2025, which it believes is manageable given its current cash reserves and anticipated revenues. The ongoing expense reductions will continue to support the company's financial health as it aims to enhance its market position and operational efficiency in the coming months.

Additional News
In recent developments, Trust Stamp announced a strategic partnership with Partisia, a fellow deep tech innovator. This collaboration aims to develop a more accessible and resilient solution for biometric holder binding, enhancing digital security and privacy. Additionally, Trust Stamp has addressed a Nasdaq compliance notice received earlier in the year, ensuring adherence to market regulations. Furthermore, the company successfully completed a 1-for-15 reverse stock split effective from January 6, 2025, strengthening its market position and aligning with strategic financial goals. These initiatives reflect Trust Stamp's commitment to innovation and regulatory compliance, setting the stage for future growth.