T Stamp 2025 Q2 Earnings Narrowed Losses, 62% Revenue Surge

T Stamp (IDAI) reported its fiscal 2025 Q2 earnings on August 14, 2025, delivering a 62.4% year-over-year revenue increase and narrowing losses. While the company improved its net loss by 34.1%, it still posted a deficit, and the stock has declined sharply since the report. The earnings reflect progress amid persistent financial challenges and operational shifts.

T Stamp (IDAI) reported revenue that significantly exceeded expectations in the second quarter of fiscal 2025, with a 62.4% year-over-year increase. However, despite the strong revenue performance, the company did not provide forward-looking financial guidance and continues to operate at a net loss. The earnings reflect a strategic reallocation of resources and some cost efficiencies but do not indicate a clear path to profitability.

Revenue
T Stamp saw a substantial rise in total revenue, with the company reporting $812,667 in the second quarter of fiscal 2025, compared to $500,395 in the same period a year ago. This growth was primarily driven by the professional services segment, which contributed $782,667, highlighting the company’s shift toward service-based offerings. Additionally, license fees added $30,000, demonstrating ongoing, albeit limited, demand for its product-based solutions.

Earnings/Net Income
The company narrowed its net loss to $1.71 million in Q2 2025, representing a 34.1% reduction from the $2.60 million loss in the prior-year period. On a per-share basis, the loss decreased to $0.69 from $3.19, marking a 78.4% improvement. While these figures indicate progress in cost control and operational efficiency, they also highlight that T Stamp remains unprofitable, with ongoing losses over the past five years.

Price Action
Following the earnings release, T Stamp's stock continued to underperform in the short term. Shares dropped 4.29% during the latest trading day, 9.15% over the past full trading week, and 14.79% month-to-date as of August 15, 2025.

Post Earnings Price Action Review
The performance of T Stamp shares following a strong revenue quarter has historically been poor, with investors losing nearly all value over a 30-day holding period. A strategy of buying shares after the Q2 earnings report and holding for 30 days resulted in a return of -97.59% over the past three years, significantly underperforming the benchmark by 144.06%. The strategy's Sharpe ratio of -0.40 reflects high risk and lack of return, while the maximum drawdown of 0.00% underscores its inability to recover from losses. These results highlight a lack of investor confidence despite revenue growth.

CEO Commentary
Trust Stamp CEO Christopher A. Martin emphasized the company’s resilience and operational progress, despite ongoing challenges. He highlighted a 62% quarter-over-quarter revenue increase and 26% year-to-date growth, while noting delays in the QID contract implementation. Martin pointed to resource reallocation toward product development and customer onboarding as key drivers of future growth. He also expressed optimism about the Orchestration Layer’s momentum, with 105 customers in active implementation and a 247% rise in FIS-related transaction starts over six months. Martin stressed the company’s commitment to secure digital transformation and operational efficiency.

Guidance
T Stamp did not provide specific financial guidance for future periods in its earnings filing. The company offered general optimism about continued growth in OL Platform Registrations, transaction starts, and customer completion rates, but did not outline concrete revenue or financial targets.

Additional News
Among the most-discussed non-earnings-related news items in Nigeria within the three weeks following T Stamp’s Q2 earnings on August 14, 2025, was the Nigerian Police Force’s announcement of a new special forces school in Nasarawa State. The establishment of this institution reflects the country’s focus on enhancing military and security capabilities. Another notable news item was the EFCC’s ongoing legal actions, including a high-profile probe into political figures. Additionally, the Dangote Group pledged full medical support for the injured sister of BBNaija contestant Phyna, highlighting corporate social responsibility efforts in the entertainment sector.