Vaso Corporation Announces Financial Results for Second Quarter of 2025

PLAINVIEW, N.Y., Aug. 14, 2025 (GLOBE NEWSWIRE) — Vaso Corporation (“Vaso”) (OTCQX: VASO), a leading MedTech company with a diversified business portfolio in network and healthcare IT services, professional sales services and proprietary medical products, today announced operating results for the three months ended June 30, 2025.

“The Company’s 2025 second quarter revenue was $20.0 million, slightly down from $20.2 million for the same quarter of the prior year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “The decrease in revenue was primarily in the professional sales service segment as a result of lower equipment delivery volume by our partner. The value of orders we booked in this business segment, however, continued to outpace delivery of the underlying equipment, as reflected in higher deferred revenue, which reached a record high of $38.1 million as of June 30, 2025, up from $31.7 million as of June 30, 2024.”

“Gross profit for the quarter was $11.8 million, down by $354 thousand, or 2.9%, year-over-year, and net loss for the quarter was $197 thousand, compared to net income of $1.2 million for the same quarter of 2024,” Dr. Ma continued. “Operating cash flow during the three months ended June 30, 2025 was $6.8 million. As a result, we continued to maintain a strong balance sheet with cash and cash equivalents of $32.6 million at the end of the reporting period.”

“As we are historically more profitable in the later quarters of the year, we continue to be cautiously optimistic about the full year 2025,” concluded Dr. Ma.

Financial Results for Three Months Ended June 30, 2025

For the three months ended June 30, 2025, revenue decreased by 1.3%, to $20.0 million, compared to $20.2 million for the same period of 2024, due primarily to a revenue decrease in the professional sales service segment. Revenue in the professional sales service segment was down by $366 thousand, or 4.0%, year-over-year, mainly due to lower product deliveries by our partner during the period. Revenue in our IT segment increased by $93 thousand, or 0.9%, in the second quarter 2025 when compared to the same quarter of 2024, due to higher revenue from network services sales, partially offset by lower healthcare IT sales. Revenue in our equipment segment increased by $4 thousand, or 0.7%, when compared to the second quarter of 2024, principally due to higher ARCS software subscription revenue in the US, partially offset by lower equipment deliveries in our China operations.

Gross profit for the second quarter of 2025 decreased by $354 thousand, or 2.9%, to $11.8 million, compared with a gross profit of $12.2 million for the same quarter of 2024, as a result of lower revenues and lower margins.

Selling, general and administrative (SG&A) expenses for the second quarter of 2025 increased by $1.2 million, or 11%, to $12.1 million, compared to the second quarter of 2024. The increase was primarily attributable to higher personnel costs in the IT and professional sales service segments, partially offset by lower expenses in the equipment segment.

Operating loss for the three months ended June 30, 2025 was $421 thousand, compared to operating income of $996 thousand in the second quarter of 2024. The loss was due to the lower gross profit and higher SG&A expenses as discussed above.

Net loss for the three months ended June 30, 2025 was $197 thousand, compared to net income of $1.2 million in the second quarter of 2024.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) was negative $253 thousand in the second quarter of 2025, compared to a positive $1.2 million for the second quarter of 2024. The change was primarily the result of the net loss for the quarter. Adjusted EBITDA is a non-GAAP financial measure, as further discussed below.

Net cash generated in operating activities was $6.2 million for the first half of 2025, as compared to $1.7 million for the first half of 2024. As of June 30, 2025, the Company’s cash and cash equivalents totaled approximately $32.6 million.

About Vaso

Vaso Corporation is a diversified medical technology company with several distinct but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for medical equipment; and design, manufacture, and sale of proprietary medical devices.

The Company operates through three wholly owned subsidiaries:

• VasoTechnology, Inc. provides network and IT services through two business units: NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers; and VasoHealthcare IT Corp., a national value added reseller of RIS (radiology Information system), PACS (picture archiving and communication system), and other software solutions from various vendors as well as related services, including implementation, management and support.
• Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE HealthCare diagnostic imaging and ultrasound products in certain market segments in the USA.
• VasoMedical, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company’s overseas assets including China-based subsidiaries.

Additional information is available on the Company’s website at www.vasocorporation.com. 

Summarized Financial Information and Non-GAAP Financial Measures

We utilize Adjusted EBITDA to evaluate our performance internally, and this non-GAAP financial measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Management believes that this non-GAAP financial measure, in addition to GAAP measures, is useful to investors to evaluate the Company’s results.

Adjusted EBITDA is not a measure of financial performance under U.S. GAAP and should not be considered a substitute for net (loss) income, which we consider to be the most directly comparable U.S. GAAP measure. Adjusted EBITDA has limitations as an analytical tool, and when assessing our operating performance, you should not consider Adjusted EBITDA in isolation, or as a substitute for net income or other consolidated income statement data prepared in accordance with U.S. GAAP. Investors should recognize that the Company’s presentation of this non-GAAP financial measure might not be comparable to similarly-titled measures of other companies, limiting its usefulness as a comparative measure.

Summarized financial information including a reconciliation of net (loss) income to Adjusted EBITDA is set forth below:

The information contained in this report contains forward-looking statements (as such term is defined in the Securities Exchange Act of 1934 and the regulations thereunder). These forward-looking statements may include projections of, or guidance on, the Company’s future financial performance, expected levels of future revenue and expenses, anticipated growth strategies, and anticipated trends in the Company’s business or financial results. When used in this report, words such as “anticipates”, “continue”, “believes”, “could”, “estimates”, “expects”, “may”, “plans”, “potential”, “future”, “intends”, the negative of these terms and similar expressions identify forward-looking statements. Any forward-looking statement made by the Company in this document is based only on the Company’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business based on information currently available to the Company and speaks only as of the date when made. Forward-looking statements are not historical facts or guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, many of which are outside of the Company’s control. Actual results may differ materially from this forward-looking information and therefore should not be unduly relied upon. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the possibility of a downturn or disruptions in the U.S. economy; the impact of US tariff policies; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.

Investor Contact:
Jonathan Newton
Investor Relations
Phone: 516-997-4600
Email: jnewton@vasocorporation.com