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Mar 31
MeridianLink Q1 2025 Earnings Report
MeridianLink reported modest revenue growth and strong free cash flow, despite posting a net loss in Q1 2025.
Key Takeaways
MeridianLink achieved a 5% year-over-year revenue increase in Q1 2025, supported by 10% growth in lending software solutions and efficient cost management. Although the company reported a net loss, free cash flow remained strong, and leadership transition plans were announced.
Revenue rose 5% year-over-year to $81.5 million, driven by lending software.
Net loss was $4.7 million, while non-GAAP net income reached $7.1 million.
Free cash flow was $40.6 million, representing 50% of revenue.
Larry Katz announced as successor to CEO Nicolaas Vlok, effective October 1, 2025.
MeridianLink
MeridianLink
MeridianLink Revenue by Segment
Revenue by Segment
Lending Software Solutions Revenue
CapyFin.comData Verification Software Solutions Revenue
CapyFin.com Forward Guidance
MeridianLink reaffirmed full-year 2025 guidance, maintaining a cautious but optimistic view of growth and profitability.
Positive Outlook
- Full-year revenue guidance of $326M–$334M reaffirmed
- Adjusted EBITDA guidance set at $131.5M–$137.5M
- Strong free cash flow margin of 50% this quarter
- Bookings momentum supported by mortgage lending deals
- Ongoing enhancements to MeridianLink One platform
Challenges Ahead
- Net loss of $4.7M despite top-line growth
- Data verification segment declined 15% YoY
- Mortgage-related revenue decreased to 17% of total
- Continued headwinds in macro environment
- No increase in total assets despite strong cash position
Revenue & Expenses
Visualization of income flow from segment revenue to net income