Urgent.ly, Inc. Q3 FY2025 earnings call

• Achieved positive non-GAAP operating income for Q3 2025, a key milestone.
• Delivered $32.9 million in revenue, in line with expectations and eighth consecutive quarter meeting revenue guidance.
• Second quarter of modest sequential revenue improvement, indicating return to growth.
• Gross margin at 25%, a 4-point improvement from last year and 13-point improvement over three years.
• Reduced non-GAAP operating expenses by $2.7 million (25%) year-over-year.
• Progress in renewals, with productive renewal cycle ongoing.
• Secured new contracts in fleet, autonomous vehicle, and affinity brand verticals, including partnership with Sony Honda Mobility for Aphelio owners.
• Website refresh nearly complete, set to relaunch soon.
• Pending NASDAQ listing compliance efforts with a continued listing extension granted until February 16, 2026.

For the third quarter ended September 30, 2025, Urgent.ly Inc. generated $32.9 million in revenue. This is a 9% decline from the same quarter last year, primarily driven by reduced dispatch volume from a top OEM customer and the autonomous business, partially offset by volume and rate increases from new and existing partners. Gross profit was $8.1 million, with gross margin at 25% (up from 21% last year). Operating expenses were $9.9 million, a decrease of $3.8 million from the prior year, with significant reductions in R&D, sales & marketing, operations & support, and G&A expenses.

• 2025 revenue expected between $30 million to $33 million.
• Non-GAAP operating loss projected to be less than $500,000 for 2025.
• Targeting non-GAAP operating breakeven in the fourth quarter of 2025.

• NASDAQ listing issues: Urgent.ly Inc. was notified of net income falling below minimum requirements and non-compliance with listing criteria, but a hearing resulted in a continued listing extension through February 16, 2026, while the company pursues recapitalization to regain compliance.

Q: How should investors think about Urgent.ly Inc. positioning if the economy weakens, considering exposure to OEMs and insurance customers?

A: Matthew Booth stated Urgent.ly is an anti-cyclical business; as the economy worsens and cars break down more, revenue may improve. The company has seen good deliveries on the OEM side so far with no tariff impacts, and progress in insurance partnerships.

Q: How to think about the fourth quarter 2025 as an easier comp and renewals/new customer wins?

A: Matthew Booth mentioned the company has shed Autonomous assets, reducing related expenses, and has strong opportunities in the pipeline. Renewals look great with happy customers, and there are new insurance and fleet customer contracts, expecting a strong renewal cycle to finish 2025 strongly