Operational and Cost Management Amid Market Challenges
The company has implemented plans to mitigate tariffs' effects and leverage its flexible manufacturing footprint, especially in Mexico, to reduce costs.
G&A costs are expected to be aligned with the new organizational structure post-transaction, with significant G&A transfer to Amphenol.
Despite market challenges, the company has maintained strong margins and cost leverage, supporting its improved EBITDA margins.
Adjusted EBITDA was $48.1 million with a margin of 54.8%, exceeding expectations by over 100 basis points.
Adjusted net income increased 3.2% year-over-year to $28.4 million, with adjusted EPS of $1.46, up 2%.
Capital allocation included $12 million in common stock repurchases and $6 million in bond repurchases.
Consensus reported Q2 2025 consolidated revenue of $87.7 million, a 0.3% increase year-over-year, marking the first quarterly revenue growth in 8 quarters.
Corporate channel revenue grew 6.9% year-over-year to a record $55.3 million, driven by strong health care vertical growth and strategic partnerships.
Free cash flow rose 29% to $20.3 million, supported by operational performance and lower interest expense.
SoHo channel revenue declined 9.4% year-over-year to $32.4 million, reflecting a planned reduction and strategic focus on profitability.
Dafinchi
