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Jun 30, 2025
Digital Ally Q2 2025 Earnings Report
Digital Ally reported a net loss with declining gross margins despite stable revenue.
Key Takeaways
Digital Ally posted revenue of $5.63M in Q2 2025, essentially flat year-over-year. However, higher costs pushed the company into a gross loss, and operating losses widened. Net loss per share was -$3.21, reflecting ongoing financial pressure despite financing activities that improved liquidity.
Total revenue was $5.63M, flat compared to Q2 2024.
Gross margin turned negative with a gross loss of $0.63M.
Operating loss increased to $4.10M from $3.91M in Q2 2024.
Net loss attributable to shareholders was $4.55M, or -$3.21 per share.
Forward Guidance
The company expects continued challenges in profitability but is focusing on cost controls, financing flexibility, and leveraging its three operating segments.
Positive Outlook
- Stable revenue across core segments.
- Recent equity financing strengthened liquidity.
- Debt obligations reduced significantly.
- Subscription models continue to contribute steady cash flow.
- Entertainment and healthcare segments provide diversification.
Challenges Ahead
- Gross margin turned negative due to rising costs.
- Operating losses remain elevated.
- Net losses continue to weigh on equity.
- Cash flow from operations was negative at -$8.64M in H1 2025.
- Uncertainty around sustaining revenue growth across segments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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