Adjusted EBITDA was negative $7.3 million, a decline of $8.3 million year-over-year.
Annual recurring revenue (ARR) increased 11% year-over-year to $56.9 million.
Cash balance stood at $105 million with no debt and $75 million in undrawn credit.
Gross profit totaled $12.7 million, down from $17.3 million in the prior year quarter, with SaaS gross margin at approximately 70%.
Hardware revenue declined 20% sequentially and 39% year-over-year to $15.1 million, reflecting the transition away from bulk hardware deals.
Hosted services revenue grew 1% sequentially and 5% year-over-year to $18.8 million, now representing nearly half of total revenue.
Net loss increased to $10.9 million from $4.6 million year-over-year, driven by lower hardware sales.
Operating expenses were $24.4 million, including $2 million in severance and legal expenses not present in the prior year.
Professional services revenue increased 10% sequentially to $4.3 million but was down 26% year-over-year.
SaaS revenue reached $14.2 million, comprising 37% of total revenue, up from 34% in Q1 and 26% year-over-year.
Total revenue for Q2 2025 was $38.3 million, down 7% sequentially and 21% year-over-year, primarily due to the strategic shift away from bulk hardware sales.
Dafinchi