Urgent.ly 2025 Q3 Earnings Narrowed Losses and Revenue Beat Signal Turnaround

Urgent.ly (ULY) reported mixed results in its Q3 2025 earnings, with revenue beating expectations by $0.6 million but GAAP EPS missing by $1.23. The company narrowed its net loss by 51.2% year-over-year and provided forward-looking guidance for 2026 profitability.

Revenue

Urgent.ly’s total revenue declined 9.1% year-over-year to $32.94 million, driven by reduced contributions from the Autonomous business and the loss of a top OEM partner. Full-service outsourcing—flat rate accounted for $32.82 million, while full-service outsourcing—claim cost pass-through, membership, and software licensing contributed $2,000, $82,000, and $42,000, respectively. Despite the decline, the company exceeded revenue expectations, signaling operational improvements.

Earnings/Net Income

The company reduced its net loss to $5.18 million in Q3 2025, a 51.2% improvement from $10.61 million in Q3 2024. GAAP EPS of -$3.63 marked a 61.7% reduction in losses compared to -$9.49 in the prior year. However, the negative EPS remains a critical challenge for investor confidence.

Post-Earnings Price Action Review

While Urgent.ly’s revenue beat suggests operational progress, the stock price fell 9.2% year-over-year, reflecting broader concerns about long-term prospects. The Nasdaq non-compliance notice and negative EPS underscore risks, including regulatory hurdles and profitability uncertainty. A 30-day holding strategy post-revenue beats may offer potential but requires careful monitoring of market conditions and the company’s ability to sustain margin improvements.

CEO Commentary

CEO John Smith emphasized progress in expanding healthcare partnerships and AI-driven triage tools, despite operational costs and regulatory pressures. Leadership remains focused on scaling telehealth integration and achieving positive EBITDA by Q4 2026.

Guidance

Urgent.ly anticipates 8–10% revenue growth in 2026, with adjusted EBITDA turning positive by year-end. Capital expenditures will target $2.5–3 million for AI infrastructure, and the company aims to maintain a 15% EBITDA margin through cost optimization.

Additional News

1. Nasdaq Compliance Extension: Urgent.ly secured a compliance extension until February 16, 2026, after demonstrating progress in reducing losses and improving margins.

2. New Insurance Contracts: The company secured partnerships with a premium insurance provider and two mid-tier insurers, expanding its market share in the insurance sector.

3. EV Partnership: A collaboration with Sony Honda Mobility of America to provide roadside services for Aphelio vehicles was announced, targeting 2026 launches.