Before we begin with prepared remarks, just a couple of comments. Today's call will contain forward-looking statements that are based on current assumptions and subject to risk and uncertainties that could cause actual results to differ materially from those projected. The company undertakes no obligation to update these statements except as required by law. Information about these risks and uncertainties are included in the company's filings, as well as periodic filings with regulators in Canada and the United States, which you can find on SEDAR and Zoomd's website. Today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures. Note that all figures on this call are noted in US dollars and are as are Zoomd's financial statements.
Finally, today's event is being recorded and will be available for replay through the webcast information provided in the press release. With that said, let me now turn the call over to Amit Bohensky, Founder and Chairman of Zoomd . Amit, please proceed.
Thank you, Ben, and good morning to all of you. We are pleased to speak with you today regarding our third quarter 2025 results. In Q3 2025, the company reported a 3% decrease in revenues compared to Q3 2024, primarily due to the fact that most revenue from the EuroCup tournament was recognized in Q3 of 2024. Despite the revenue decline, the company delivered strong financial results and higher profitability through disciplined cost management and enhanced operational efficiency. Growth was achieved across all key operating metrics, including cash generation, gross profits, net income, and adjusted EBITDA, notably operating income increased by 15% to $3.7 million for the quarter. Year to date, our results demonstrate meaningful progress on both the top and bottom line. For the first nine months of 2025, revenue grew 37% and net income increased by 150%.
These gains reflect fundamental changes we've made in how we run the business and how we are confident in our ability to build on this success. Going forward, on a trailing 12-month basis, we generated $68.9 million in revenue, $32.5 million in gross profit, and $17.7 million in net income. We ended the third quarter of 2025 with $18.3 million in cash and no long-term debt. While our current cash position provides ample runway to support organic growth as well as pursuing more partnerships like the one we announced with E2 , it also offers flexibility to pursue strategic acquisitions that will further accelerate our expansion. We continue to evaluate opportunities that complement our core competencies and would be strategically accretive. Our performance continues to deliver operational ROI for our customers, supporting strong client retention and driving new customer wins.
Revenues from clients outside of the company's top 10 customers doubled in Q3 2025 compared with Q3 2024, a showcase of the significant efforts undertaken to abate our customer concentration. Over the past year, we added more than 10 new clients and based on the typical revenue ramp-up time, we expect to see the impact of these wins in 2026. With 2026 also being a World Cup year, we started to strategize with some of our customers to secure budgets for the World Cup, which is the most viewed sporting event in the world. Our differentiated focus on markets outside the walled gardens is gaining traction, and industry recognition is growing. On our second quarter call, I noted our efforts to establish strategic partnerships to accelerate sales growth.
Recently, we announced the first of this, a global agreement with E2- Quadrat Communication, a leading provider of digital marketing and technology solutions for the sports and betting industry. The collaboration will allow Zoomd to access E2's current and future clients worldwide, accelerating our client acquisition and revenue growth efforts. We are working on securing additional agreements that will accelerate our revenue base. Now, I would like to focus on the three key areas of Zoomd: our customers, our product, and service development, and how we are adapting to the market trends. I want to begin with our customer base. We continue diversifying our customer base and focusing on growth sectors such as e-commerce, iGaming, entertainment, and transportation, and consumer goods, sectors known for their stable growth patterns and elevated profit margin. We have deepened our activity with current customers as well as expanding to new customers.
Consequently, our revenues have experienced substantial growth. The diversification in sectors and geographies is important as we aim to manage strong revenue growth. As we reported, over 70% of our revenues come from top five customers. It's worth noting that each of our top clients operates across multiple countries with different KPIs, budgets, and strategies. For example, we operate in more than 30 countries for one client and 10 for another, which expanded by 50% during 2025. This helped reduce concentration risk and strengthens our overall foundation. Now, I would like to turn to our product and service offering. Our competitive edge stems from our comprehensive 360-degree approach to the digital performance with a mobile-first focus, all designed to help our clients to achieve their goals.
We offer a wide range of solutions tailored to digital and mobile performance, enabling us to deliver a holistic suite of products and services that drive measurable results against our clients' digital performance KPIs. Finally, Zoomd utilizes a combination of research, development, acquisitions, and methodologies to improve its offerings. One of our core strengths is our transparent, direct, and intensive client communication. Unlike many of our industry peers, we do not operate through agencies. We work directly with our clients, engaging with the Chief Revenue Officer side of the organization. This relationship positions us not just as a vendor, but as a trusted advisor. The depth of this engagement fosters long-term partnerships, significantly reduces churn, and creates strong opportunities for revenue growth within our existing client base. This approach enables real-time campaign management without delays, even while simultaneously handling multiple campaigns across various geographies.
This unique approach positions us as a semi-human, semi-automated command-and-control platform, effectively combining advanced technology and strategic insights. We closely monitor and respond not only to the shifts in client strategy, but also broader macroeconomic changes beyond the client's direct control. As a result, we empower our clients to swiftly adapt to market fluctuations, maximizing their impact and driving significant outcomes globally. Our main platform is integrated to hundreds of media sources, allowing us to promote customers' digital assets in multiple channels under one system. We use a DSP for programmatic media buying. The DSP is integrated to the biggest mobile media exchanges, providing our customers full range and reach for their mobile web and app performance needs. We optimize the advertisers' resources and maximize their advertising budget and efficiency. There is no dependency on any specific media supplier or traffic channel.
This not only saves valuable time and resources for advertisers, but also provides enhanced clarity and consolidated insights. Additionally, our platform and products are designed for user-friendly operation, eliminating the need for a software development kit as SDK implementation. In our perspective, positioned a crucial layer within the ecosystem, the company stands strongly in the industry beyond the walled gardens as Google, Meta, etc. The marketing landscape is very fragmented. Zoomd enables advertisers to leverage a wide range and various types of media channels, from social to programmatic OEMs, SDK network, and more. Their KPIs are achieved on all channels together or as a mix. Before I go through the financial results, I want to update that in line with the recent changes in the marketing space, two of our largest customers are making adaptations to their acquisition models and goals.
We are working closely with them on adapting their KPIs and measurement models to align with their new objectives. Such transitions are a part of our business, and based on our experience, activity typically scales back up within a few months. While these changes may temporarily impact near-term activity, they also establish a foundation for stronger and long-term collaboration. Transitions like this, similar to other periodic shifts in our operating environment, do not reflect on our quality of service we provide. Our diverse customer base spans multiple sectors and regions, so revenue cycles may occasionally be influenced by external factors such as seasonality, macroeconomic trends, client budget decisions, or organizational and internal changes on the client sides, as in the case now.
As we have successfully done so in the past, we continue to focus on maintaining a resilient, flexible operational foundation that enables us to navigate these fluctuations effectively while preserving long-term profitability and strong client relationships. Financial results. Now, I will review the third quarter of 2025 financial results in detail. Revenue. Revenue in Q3 2025 was $16.5 million, a 3% decrease from $16.7 million in Q3 of 2024, preliminarily reflecting a one-time revenue benefit in the prior year period from the Euro Cup tournament. Gross margin. Gross margin in Q3 2025 was 42.6%, a 332 basis points increase compared to Q3 of 2024. This improvement was driven by the continued operational efficiencies. Operating expenses. Total operating expenses for Q3 of 2025 were $3.2 million, a 5% decline compared to Q3 2024.
Despite a 3% year-over-year decline in sales, operating margins expanded to 366 basis points, reflecting strong gross margin and disciplined cost control. Adjusted EBITDA. Adjusted EBITDA is used as the primary performance measure by the company's management to ensure it has the right structure to support future growth. We define adjusted EBITDA as earnings before interest, tax, depreciation, one-time payments, and amortization, as adjusted for share-based payments and non-recurring operating expenses. Adjusted EBITDA was $4 million in Q3 of 2025, a 3% increase compared to Q3 of 2024. A full reconciliation of adjusted EBITDA is available in our MD&A file. Net income. Net income was $3.8 million, a 20% increase compared to Q3 of 2024. Cash. Cash flow from operations reached a record $5.4 million in Q3 2025 as of September 30, 2025. The company has a cash balance of $18.3 million and no long-term debt.
Before I move on to the questions, I want to thank all our employees for their hard work and dedication, as well as our investors who support us. I'm always available to speak with investors and look forward to hearing your feedback and answering questions. With that said, I will answer some of our investors' questions and some questions that may be of interest to our investors.
Okay. Thank you, Amit. We have some questions for you. The current year is marked by a highly volatile and complex global macroeconomic environment. This does not—this doesn't appear likely to normalize in the near term. How is Zoomd navigating this situation?
Very good question. We're operating in a volatile environment, so we've been very focused on effective, agile management that allows us to adapt quickly.
At the same time, we've maintained a lean cost structure and a strong operational backbone while continuing to invest in market analysis, customer management, and R&D, all of which support our competitive edge. We always constantly work to improve our customer diversification, revenues from clients outside of our top 10 doubled in Q3 compared to last year. In addition, we expanded our presence in North America and Europe and strengthened our position in sectors with stable demand and attractive margins, such as e-commerce, iGaming, entertainment, transportation, and consumer goods. All of these contribute to the higher profitability across key metrics: cash generation, gross profit, net income, and adjusted EBITDA. This ties directly into our strategy going forward. We operate in a dynamic, evolving environment, and management remains focused on the three core strategic initiatives. One, organic growth, continuing to expand in stable, high-margin verticals while improving internal efficiency.
Two, strategic partnerships. Strategic partnerships in high-potential sectors, allowing us to unlock new opportunities quickly and efficiently. Three, actively exploring M&A opportunities to accelerate growth, deepen technological capabilities, and broaden our customer base. The combination of disciplined execution and a clear strategic framework positions us well to navigate market fluctuations while staying ready to capture opportunities as they arise.
Okay. Thank you. We have another question. Can you elaborate more on the deal with E2 ? When do you expect to see some meaningful revenues from this agreement, and why is Zoomd so attractive to companies such as E2 ?
As noted, partnerships like this are one of the three pillars of our strategic initiatives. We view partnerships as a means to accelerate penetration in geographies and/or sectors we view as high-quality revenue.
It took us time to identify the right partner and validate the fit through a practical feasibility phase where the combination of E2's industry expertise and the relationships with Zoomd's performance marketing capabilities showed clear synergies. Following the successful initial campaigns, the two companies expanded the collaboration into a formal strategic partnership. E2 is now offering Zoomd's user acquisition services, which provide us exposure to dozens of sportsbook operators and broader sports and betting clients worldwide. Initial integrations are underway, and broader campaigns will roll out in the coming months. We expect meaningful contributions already in 2026, which is also a World Cup year, a factor that should further boost demand in this segment. To your question about Zoomd, why Zoomd is attractive to E2, it comes down to the strong complementarity between the companies.
E2 's deep domain expertise and Zoomd's data-driven user acquisition capabilities enables more efficient campaigns, unlocks new potential, and supports growth with existing clients fully aligned with our focus on high-growth verticals.
Okay. Thank you. We have another question. Large players in the digital advertising space have recently faced continued headwinds and volatility. Against that backdrop, can you say that momentum continues for Zoomd?
I get these questions so many times. It is very relevant questions. When I talk about the momentum, I'm not referring to a straight line upward or ignoring what is happening around us in the broader market. You are absolutely right that even very large players are dealing with pressure from shifting budgets and platform changes to the macro uncertainty. For us, the momentum continues is about the fundamentals of how we are building the company. It is about focus, discipline, and adaptability.
We do not control the market cycles, but we control how we respond to them. Our strategy is specifically designed to remain flexible, manage risk, and adjust quickly as conditions evolve. What gives me confidence is that we are not chasing short-term trends. We are strengthening our core, investing selectively, and making the operational choices that support long-term value creation. There will always be volatility along the way. That is the nature of this industry. As long as we continue to execute with clarity and discipline, I remain very comfortable saying that the momentum continues in the sense that actually matters for long-term shareholders. One last point. Many of you are already in direct touch with me. For everyone else, please feel free to reach out directly over email or WhatsApp anytime about all things related to Zoomd .
Once again, I want to thank everyone for your interest in Zoomd.