PSQ Holdings, Inc. Q1 FY2025 earnings call

Overall Company

• Revenue grew 95% YoY to $6.75M; operating expenses down 10% YoY; customer acquisition costs near zero in fintech for next two years; margin expanded to 58%.

Payments

• Significant progress in integrating and onboarding merchants; helped merchants like Guns.com and Tenacity Arms with payment processing; launched Shopify integration.

Buy Now, Pay Later

• Slight dip in originations volume due to seasonal shift; tightened AI-driven underwriting; grew prequalified applicant database by 198,196; working on 'credit 2.0' initiative.

Marketplace

• Made progress on synergies between payments and marketplace; improved ambassador program; preparing for Made in America product assortment launch in late Q2; reduced marketing efforts in Q1.

Brands Division

• Over 40% YoY revenue growth; 68% of Q1 revenue from subscriptions; received large bulk order from Pregnancy Resource Center coalition.

Overall, PSQ Holdings, Inc.'s revenue in Q1 2025 grew 95% year over year to $6.75 million. The fintech division contributed $3.05 million, the marketplace added just over $400,000, and the brands division (EveryLife) contributed $3.27 million. Operating expenses decreased 10% year over year from $16 million in Q1 2024 to $14 million in Q1 2025. Margin expanded to 58% in Q1 2025 from 43% in Q1 2024. For the brands division, EveryLife saw year-over-year revenue growth >40%, with 68% of Q1 revenue from subscription orders, and a $2 million bulk order from a Pregnancy Resource Center coalition was received.

Revenue

• Reaffirmed total year-over-year revenue growth of greater than 100% (or >$46 million).

Expenses

• Operating expenses to decrease in 2025 compared to 2024.

Credit Line

• New line of credit expected to reduce cost of capital by ~50% and be in place by end of third quarter.

Division Focuses

• Fintech: Q2 focus on ramping up GMV, Q3/Q4 for revenue from GMV efforts. Marketplace: Breakout second half with Made in America focus. Brands division: Driving momentum with repeat purchasing and bulk orders.

Q: Thomas Forte asked about surprises in payments rollout and product pipeline beyond baby and feminine hygiene in brands division.

A: Michael Seifert said demand for payments was overwhelming, driven by reactive (merchants dropped by other providers) and proactive (merchants wanting seamless checkout) demand. For brands, future products informed by customer feedback, focusing on home essentials.

Q: Dylan asked about cross-selling, GMV pipeline, and AI credit tools impact.

A: 90% of synergies currently from buy now, pay later to payments, 10% from marketplace to payments, pipeline above $10 billion but focusing on first $2.5-$3 billion this year. AI credit tools within expectation, revenue growth expected in credit business with healthier margins.

Q: Question about combating marketing emails from vendors in marketplace.

A: Michael Seifert said comms consolidation underway, email accessible only by PSQ Holdings, Inc. team to reduce vendor emails, drive traffic back to marketplace.

Q: Question about milestones driving profitability and shareholder value.

A: Michael Seifert reaffirmed operating cash flow positive by end of year, milestones include signed GMV conversion, organic grassroots growth, margin expansion in brands, and efficiency streamlining.

Q: Question about advertising for marketplace.

A: Dusty Wonderlecht and Michael Seifert said will turn back on marketing but focus on organic grassroots, storytelling for marketplace, low paid marketing for fintech, and earned media for brands.

Q: Question about Donald Trump Junior's role.

A: Michael Seifert said Don Jr. is early investor, board member, helps with strategic partnerships, marketing, and growth trajectory through influence in various sectors.

Q: Question about accepting Bitcoin.

A: Michael Seifert said excited about cryptocurrency, pursuing strategically, will hold Bitcoin on balance sheet eventually, focusing on user-friendly adoption for mass audience.