EBITDA for Q2 2025 was $8.1 million, a significant improvement from a loss of $1.2 million in Q2 2024.
For the first half of 2025, adjusted EBITDA increased 83.4% to $30.8 million from $16.8 million in the prior year period.
Gross profit increased 36.1% year-over-year to $85.9 million, with gross margin expanding by 270 basis points to 26.8%.
Net loss attributable to common shareholders narrowed to $17 million ($0.16 per diluted share) from $29.6 million ($0.28 per diluted share) in Q2 2024.
The Gaming Components and Systems segment grew revenue by 30% year-over-year, while the Gamer and Creator Peripherals segment grew 9%.
Adjusted diluted EPS grew over 5% to $1.24 compared to $1.18 in Q2 2024, despite a $0.10 per share negative impact from foreign exchange losses.
Adjusted EBITDA for Q2 2025 was $107.7 million, a nearly 12% increase from the prior year period, with a margin of 30.6%.
Four of five reportable segments showed revenue growth, with Cybersecurity & Martech declining less than 1% but posting over 5% adjusted EBITDA growth.
Q2 2025 revenues were $352.2 million, up nearly 10% year-over-year, marking the strongest quarterly revenue growth since 2021.
Trailing 12 months free cash flow was $233 million, up nearly 27% year-over-year.
Advanced technologies and integrated solutions revenue increased 3%, driven by server storage and networking solutions.
Business Solutions segment net sales increased 5.4% to $293.2 million; gross profit up 3.8% to $68.8 million; gross margin down 30 basis points to 23.5%.
Cash flow used in operations was $26.1 million in first half of 2025, driven by inventory increase of $38.4 million and accounts receivable increase of $26.7 million.
Cash generated from investing activities was $103.1 million, mainly from sale of investments and maturities.
Cash used in financing activities was $68.5 million, primarily for stock repurchases and dividends.
Diluted EPS was $0.97, down $0.02; adjusted diluted EPS also $0.97, down $0.03.
Effective tax rate increased to 27.3% from 26.4%.
Ended Q2 with $346.1 million in cash, cash equivalents, and short-term investments.
Enterprise Solutions net sales grew 9.1% to $326 million; gross profit increased 3.4% to $47.6 million; gross margin decreased 80 basis points to 14.6%.
Gross profit reached a record $137.8 million, but gross margin declined 40 basis points to 18.1% due to changes in partner subscription licensing programs.
Interest income decreased to $3.2 million from $4.7 million due to lower cash balances and interest rates.
Mobility and desktop categories sales increased 6% year-over-year and 5% sequentially, driven by Windows 11 refresh and AI PC demand.
Net income was $24.8 million, down 5.2% from $26.2 million in Q2 2024.
Net sales were $759.7 million in Q2 2025, up 3.2% year-over-year.
Operating income remained flat at $30.9 million year-over-year.
Paid $0.15 per share quarterly dividend; repurchased 255,000 shares in Q2 at $60.95 average price, totaling $15.5 million.
Public Sector Solutions net sales declined 11.9% to $140.5 million; gross profit decreased 11.9% to $21.3 million; gross margin stable at 15.2%.
SG&A expenses increased 1.6% but decreased as a percentage of sales to 14.1%.
Trailing 12-month adjusted EBITDA was $122.5 million, down 2% from $125.4 million a year ago.
Year-to-date share repurchases totaled 952,000 shares at $63.35 average price for $60.3 million; $49.4 million remains under repurchase program.
Debt was reduced by $105 million, lowering net debt to $1.1 billion and net leverage to 1.8x, with credit rating upgrades from Fitch and Moody's.
Operating margin expanded to 22.6%, up 160 basis points year-over-year, and non-GAAP EPS grew 16% to $1.06 per diluted share.
RingCentral achieved positive GAAP operating income and net income for the first time in its history.
RingCentral reported total revenue of $620 million in Q2 2025, representing a 5% year-over-year increase and hitting the high end of guidance.
Stock-based compensation was reduced by 450 basis points year-over-year as a percentage of revenue, with net new grants down 45% in the first half of 2025.
Subscription revenue grew 6% to approximately $600 million, with ARR increasing 7% to about $2.6 billion.
The company generated $144 million in free cash flow, a 33% increase year-over-year, with free cash flow per share rising 37% to $1.57.
Dafinchi