Renoworks Announces First Quarter 2025 Financial Results

Renoworks Announces First Quarter 2025 Financial Results

CALGARY, AB, May 6, 2025 /CNW/ - Renoworks Software Inc. (TSXV: RW) ("Renoworks" or the "Company), an industry leader in visualization and lead generation technology for the home remodel and new construction sector, announces its first quarter 2025 results. The financial statements and related management's discussion and analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca. Unless otherwise stated, all dollar amounts are Canadian dollars.

Financial highlights for the 2025 year-to-date with comparatives for 2024 are as follows:

• Revenues of $1,847,981 versus $1,479,390 for the same period in 2024, a 25% increase.
  
  
• Deferred Revenue of $2,467,251 March 31, 2025 compared to $2,519,797 at December 31, 2024.
  
  
• Recurring revenue of $879,726 versus $616,638 for the same period in 2024, a 43% increase.
  
  
• Gross margin of 75% versus 75% in same period in 2024.
  
  
• Net profit of $67,092 compared to a net loss of $125,753 for the same period in 2024, an improvement attributed primarily to the rise in licensing and hosting revenue of 43%.
  
  
• Cash at March 31, 2025 was $1,174,750, a decrease of $361,921 from $1,536,671 at the end of fiscal 2024. 
  
  
• The Company's working capital at March 31, 2025 was negative $48,483 compared to negative working capital of $121,451 for the fiscal year ended December 31, 2024, an improvement of $72,968 primarily due to an increase in trade and other receivables and deferred revenue balances.  Excluding deferred revenue, a significant non-cash item included in working capital, the Company's working capital at March 31, 2025 is positive $2,206,671 ($2,157,879 – December 31, 2024).
  
  
• As at March 31, 2025, the Company had 40,667,968 common shares issued and outstanding.

Renoworks reported a 25% increase in revenues for the three months ending March 31, 2025 compared to the same period in 2024. This growth was driven by a 43% rise in licensing revenue. The Company earned aggregate revenues of $1,847,981, including $659,662 from design services, $879,726 from licensing and hosting, $190,618 from libraries, and $117,975 from implementation fees.

Net profit for the three months ended March 31, 2025, was $67,092, an improvement compared to the net loss of $125,753 reported for the same Q1 period in 2024. This improvement is attributed to increases in revenue and foreign exchange gains.

"Our results for the first quarter of 2025 reflect the positive momentum we've built through our strategic focus on innovation, customer success, and the expansion of our licensing and hosting solutions. Revenues increased by 25% year-over-year to $1.85 million, and we achieved a net profit of $67,092—an important turnaround from the net loss reported in the same period last year. This improvement is driven largely by a 43% increase in licensing and hosting and the strength of our business model and the growing demand for our platform.

We're particularly proud to report continued gross margins of 75%, demonstrating a focus on operational efficiency, even as we scale. These results reinforce the value Renoworks is delivering to our customers, partners, and shareholders. Our team has been working closely with industry leaders to innovate our platform to meet their growing demand for visualization and design-led experiences. As we move forward, we remain committed to expanding our market presence, advancing our technology roadmap, and delivering sustainable growth."

Adjusted EBITDA for the first three months of 2025 was a positive $97,955, an improvement from the negative Adjusted EBITDA of $107,237 reported for the same period in 2024.

Financial results from operations for the first quarter 2025 with comparatives for 2024 are as follows:

The Company's financial position as of March 31, 2025 and December 31, 2024 is as follows:

About Renoworks

Renoworks Software Inc. develops and sells unique digital visualization software and integration solutions for the remodeling and new home construction industry. Renoworks delivers its technology to manufacturers, contractors, builders, and retailers offering solutions to one of the home improvement industry's greatest challenges: enabling homeowners to review their product selections in a hyper-realistic, virtual environment before committing to purchases and construction. Renoworks markets its technologies as an innovative engagement, sales, and marketing platform and generates revenues from five main business lines: Renoworks Enterprise, Renoworks PRO, Renoworks Design Services, Renoworks FastTrack, and Renoworks API (Application Programming Interface). For more information, visit www.renoworks.com and www.renoworkspro.com. 

*Non-IFRS Measures

Adjusted EBITDA is a measure not recognized under IFRS. However, management of Renoworks believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation and amortization, stock-based compensation, restructuring costs, impairment charges and other non-recurring gains or losses. Management believes Adjusted EBITDA is a useful measure that facilitates period-to-period operating comparisons.

Adjusted EBITDA does not have any standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that Adjusted EBITDA is not an alternative to measures determined in accordance with IFRS and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Renoworks' Adjusted EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of Renoworks posted on SEDAR+ (www.sedarplus.ca).

Forward-Looking Information

Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the Company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE RenoWorks Software Inc.