PSQ Holdings, Inc. Q3 FY2025 earnings call

• Beat prior revenue guidance by 10% and reaffirmed Q4 2025 and full year 2026 revenue guidance.
• Fintech revenue saw a 28% quarter-over-quarter increase, with payments up 50% Q-Q and credit up 22% Q-Q.
• Net loss decreased 33% compared to the prior year period, and operating expenses decreased 13% Y-Y.
• Streamlined focus on fintech, with plans to expand the fintech platform with new services like private label credit cards, fundraising tools, crypto payments, and digital asset treasury management.
• Monetization of the Brands segment is on track to reach a purchase agreement by the end of Q4 2025; exploring sale or strategic repurposing of the Marketplace segment.
• Realized approximately $11 million of expected $11 million in annualized savings from the 2024 reorganization ahead of schedule in 2025.

Fintech revenue for the third quarter was $4.4 million, representing a 37% year-over-year increase. This includes payments revenue of $1.5 million, which was a 50% increase from Q2 2025, and credit revenue of $2.9 million, a 22% quarter-over-quarter increase. The Brands segment (driven primarily by EveryLife) earned $3.7 million in Q3 revenue, a 42.7% increase compared to the prior period, contributing 42.7% to the revenue mix. The Marketplace segment earned $0.2 million in Q3, in line with management expectations.

• Reaffirmed Q4 2025 revenue expectation of approximately $6 million, consisting of $2.4 million in payment processing revenue and $3.6 million in credit product-related revenue.
• Affirmed full year 2026 revenue guidance of greater than or equal to $32 million.

• The information discussed contains forward-looking statements involving risks, uncertainties, and assumptions, with no duty to update as a result of new information or future events.
• Actual results may differ materially from forward-looking statements due to factors in SEC filings like the 2024 10-K.

Q: Congrats on the progress. Just in terms of the bundling, can you talk about both the attach rate of customers bundling and then how that's benefiting retention? And then second, on your '26 revenue guidance, can you speak to in a little bit more detail what's assumed as kind of existing products to drive that growth versus new products?

A: Great questions. The majority of enterprise clients utilize bundled services; payments revenue comes from clients also using credit offerings and marketing services, making the product sticky. For 2026 guidance, it's based on current product set with new verticals conservatively projected.

Q: Kind of like big picture, you already kind of touched on this, but I was curious if you could give us a bit more color around the momentum in top line. I was wondering whether it is primarily new customer addition, new customer being onboarded? Or is it more higher transaction volume from existing customers or greater adoption of your bundled offering?

A: The majority of top line growth is from new customer acquisition, with expedited onboarding in the second half of the year driving growth. Q4 benefits from newly onboarded merchants in retail for Christmas shopping season.

Q: What is the utilization level of PSQ's payment processing service? Has there been growth? And is the client base mostly staying with niche, i.e., firearms dealers? Or are you seeing more diverse businesses that are making a switch over?

A: Merchant base is more industry diverse than anticipated, including retail, B2B SaaS, nonprofit, and firearms adjacent verticals. Payment stack is scalable, with diverse client mix.

Q: PublicSquare stock has been volatile, suggesting investor uncertainty around long-term strategy and profitability. How is management balancing new initiatives such as crypto Treasury as a Service with the goal of achieving steadier earnings and long-term growth?

A: Management focuses on operating efficiency and executional focus to drive fintech growth, increasing revenue while reducing losses. New initiatives are aligned with principles of tight execution and lean efficiency to complement long-term goals.

Q: Back on August 12, which was our second quarter earnings, you said that you were monetizing EveryLife via strategic sale and either selling or repurposing the marketplace IP. Later, you announced crypto Treasury as a Service and partnership with IDX and said you'd implement it for your own treasury. Do you have an update on those?

A: Monetization of Brands segment (EveryLife) is on track for purchase agreement by end of 2025; exploring sale/repurposing of Marketplace segment. Partnership with IDX for crypto treasury is progressing as anticipated, with Q4 to bring updates on these initiatives