QUOTEMEDIA INC Annual Report - How They Did This Year

I’m writing this guide to help you understand QuoteMedia’s performance over the past year. My goal is to turn complex financial filings into clear information so you can decide if this company fits your investment goals.

1. What does this company do?

Think of QuoteMedia as the "engine room" for financial websites and apps. If you have ever checked a stock chart or a live price feed, QuoteMedia likely powered it. They provide market data, news, and analytics to financial firms, media outlets, and investors. They make money through a subscription model, charging clients monthly or annual fees for data feeds, software tools, and their flagship trading platform, Quotestream.

2. How did they perform this year?

The company is growing. Revenue reached $19.8 million in 2025, an 8% increase from $18.3 million in 2024.

A major change this year involves how they handle development costs. They now prioritize maintaining existing systems over building unproven products. Because they now record these maintenance costs as immediate expenses rather than long-term assets, they reported a loss of $1.2 million for 2025. This accounting change reflects a more conservative approach to managing cash.

3. Major wins and challenges

• The "QMod" Push: They are leaning into their QMod technology. It helps companies easily add QuoteMedia’s data to mobile-friendly, search-engine-optimized websites. This product is a key driver of their recurring subscription revenue.
• Cost-Cutting: They are building their own data sets and infrastructure. This reduces their reliance on expensive third-party providers and helps improve their profit margins.
• The "Going Concern" Warning: Management stated there is substantial doubt about their ability to stay in business over the next 12 months. They have lost over $23.5 million since they started and currently owe more in the short term than they have in assets. They lack the cash to fund operations for the next year without finding more money or becoming profitable immediately.

4. Future outlook

Management expects revenue to grow 10–12% in 2026. They believe their losses will shrink as they add clients without significantly increasing overhead. They plan to use AI to automate data processing and are expanding into international markets. They warned that they may issue more shares to raise the cash they need to survive, which would reduce your ownership percentage.

5. Key risks

• Cash Flow: They are burning through cash and have no guaranteed way to get more. Their current cash balance cannot cover their upcoming debts and operating expenses.
• Penny Stock Status: With a stock price near $0.14, they face "penny stock" rules. These regulations can lead to low trading volume, making it difficult to buy or sell shares without affecting the price.
• Competition: They compete against giants like Refinitiv and Bloomberg, who have much larger budgets and deeper market reach.
• Economic Sensitivity: Their business relies on the financial sector. If the economy slows, their clients may cancel or delay subscriptions to cut costs.

Bottom Line: QuoteMedia is growing revenue, but its financial position is precarious. They are in a race to reach profitability before their cash runs out. The "going concern" warning signals a high risk of insolvency if they cannot secure new funding or turn a profit quickly. Before investing, consider whether the potential growth of their QMod technology outweighs the significant risk of them running out of operating capital.