Vaso Corporation Announces Financial Results for Fourth Quarter and Full Year 2025
PLAINVIEW, N.Y., March 31, 2026 (GLOBE NEWSWIRE) -- Vaso Corporation (“Vaso”) (OTCQX: VASO), a leading MedTech company with a diversified business portfolio in network and IT services, professional sales services, and proprietary medical products, today announced its operating results for the three months and year ended December 31, 2025.
“The Company’s annual revenue reached a record $89.1 million for the fiscal year 2025, an increase of $2.3 million, or 3%, when compared to the prior year’s revenue, despite the sale of its healthcare IT business unit in November 2025,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Gross profit for 2025 was $54.7 million, up by $2.6 million, or 5% year-over-year, and net income for 2025 increased to $1.6 million from $951 thousand in 2024, mainly due to the increase in gross profit and recognition of tax benefits, partially offset by a write-down for impairment of goodwill.”
“Cashflow generated from operating activities was $9.3 million during fiscal year 2025, and, as a result, the Company’s balance sheet remains strong, with $35.1 million in cash and cash equivalents as of December 31, 2025,” Dr. Ma continued. “Total deferred revenue increased by $3.7 million, or 10.6%, in 2024 to $38.6 million, which we anticipate will be recognized as revenue in future reporting periods when the underlying products or services are delivered.”
“In summary, we continue to sustain significant top-line growth and maintain bottom-line profitability, while at the same time generating a substantial amount of free cashflow. Under the guidance of the board of directors, the Company has also taken steps to re-align its businesses to improve operating efficiency and profitability,” concluded Dr. Ma.
Financial Results for Three Months Ended December 31, 2025
For the three months ended December 31, 2025, revenue was $27.0 million, essentially unchanged when compared to the fourth quarter of 2024. Revenue in our IT segment decreased by $881 thousand, or 7.9%, to $10.2 million, mainly due to the sale of the healthcare IT business unit in November 2025, partially offset by increased sales in the network services revenue. Commission revenues in our professional sales service segment increased by $937 thousand, or 6.3%, to $15.9 million due to higher delivery of underlying equipment by our partner as well as higher blended commission rates for the delivered equipment. Revenue in our equipment segment decreased by $70 thousand, or 7.6%, to $851 thousand as a result of lower equipment sales in China, partially offset by higher US software-as-a-service subscription sales.
Gross profit for the fourth quarter of 2025 increased by 2.3% to $17.6 million, compared with a gross profit of $17.2 million for the same quarter of 2024. The increase in gross profit was primarily the result of a higher gross margin.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2025 increased by 5.9% to $15.5 million, compared to $14.7 million for the fourth quarter of 2024. The increase was primarily attributable to an increase in personnel and travel costs in the professional sales service segment and the IT segment. SG&A expenses were 57.4% and 54.3% of revenue in the fourth quarter of 2025 and 2024, respectively.
Net income for the three months ended December 31, 2025 was $1.1 million, compared with net income of $2.1 million for the three months ended December 31, 2024. The decrease was primarily due to a write-down for impairment of goodwill and an increase in SG&A costs in the quarter, partially offset by the recognition of tax benefits.
Financial Results for Year Ended December 31, 2025
For the year ended December 31, 2025, total revenue increased by $2.3 million, or 2.7%, to $89.1 million when compared with $86.8 million of revenue for the year 2024. Revenue in our IT segment decreased by 1.1%, to $42.5 million, for the year 2025, from 2024 revenue of $43.0 million, due to a decrease in the healthcare IT revenue as a result of the sale of the business unit in November 2025, partially offset by an increase in revenue in the managed network service business. Commission revenues in our professional sales service segment increased by $2.9 million, or 6.9%, to $44.2 million in the year 2025, compared to $41.3 million in 2024, primarily as the result of higher deliveries of underlying equipment by our partner and higher blended commission rates for the equipment delivered during the year. Equipment segment revenue for the year 2025 decreased by 1.5% to $2.4 million, from $2.5 million in 2024, due to lower product sales in our China operations driven by a lower volume of deliveries, partially offset by higher ARCS®-cloud software-as-a-service revenues in the US.
Gross profit for the year ended December 31, 2025 increased by 5.0% to $54.7 million from $52.1 million in 2024, as a result of the higher revenue and higher gross margin.
SG&A expenses for the year ended December 31, 2025 increased by $3.2 million, or 6.6%, to $52.2 million, or 58.6% of revenue, compared with $49.0 million, or 56.5% of revenue, for 2024. The increase was principally the result of an increase in personnel and travel costs in the professional sales service segment.
For the year ended December 31, 2025, the Company had net income of $1.6 million, compared to net income of $951 thousand in 2024, an increase of $618 thousand, mainly due to higher gross profit, lower investment banking expenses, the recognition of tax benefit and a gain on the sale of the healthcare IT business unit, partially offset by higher SG&A expenses and the charge for goodwill impairment.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was negative $1.5 million for the year ended December 31, 2025, compared to Adjusted EBITDA of $1.0 million for the year ended December 31, 2024. The decrease was primarily due to the lower reported operating income. Adjusted EBITDA is a non-GAAP financial metric. A reconciliation of Adjusted EBITDA to net income can be found below.
Net cash provided from operating activities in 2025 was $9.3 million, compared to net cash provided from operating activities of $3.3 million in 2024. The increase was principally due to growth in order bookings in our professional sales service segment and timing of collection of receivables. Net cash and short-term investments increased to $35.1 million as of December 31, 2025, compared to $26.3 million as of December 31, 2024.
Deferred revenue increased to $38.6 million as of December 31, 2025, compared to $34.9 million as of December 31, 2024. The increase was primarily the result of order bookings exceeding equipment deliveries in the professional sales service segment in 2025. Deferred revenue is anticipated to be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinct but related specialties: managed IT systems and network services; professional sales services for medical equipment; and design, manufacture, and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
- VasoTechnology, Inc. provides network and IT services through NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers. Previously it also provided healthcare software sales and services as a national value-added reseller through VasoHealthcare IT Corp., which the Company sold in November 2025.
- Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE HealthCare diagnostic imaging and ultrasound products in certain market segments in the USA.
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VasoMedical, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company's overseas assets including China-based subsidiaries.
Additional information is available on the Company's website at www.vasocorporation.com.
Non-GAAP Financial Information Reconciliation
We utilize Adjusted EBITDA to evaluate our performance internally, and this non-GAAP financial measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Management believes that this non-GAAP financial measure, in addition to GAAP measures, is useful to investors to evaluate the Company’s results.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered a substitute for net income, which we consider to be the most directly comparable U.S. GAAP measure. Adjusted EBITDA has limitations as an analytical tool, and when assessing our operating performance, you should not consider Adjusted EBITDA in isolation, or as a substitute for net income or other consolidated income statement data prepared in accordance with U.S. GAAP. Investors should recognize that the Company’s presentation of this non-GAAP financial measure might not be comparable to similarly titled measures of other companies, limiting its usefulness as a comparative measure.
Summarized financial information including a reconciliation of net income to Adjusted EBITDA is set forth below:
| FOR THE THREE MONTHS ENDED | FOR THE YEAR ENDED | |||||||||||
| STATEMENTS OF OPERATIONS | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||
| (In thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| Revenue | $ | 27,021 | $ | 27,035 | $ | 89,096 | $ | 86,767 | ||||
| Gross profit | 17,620 | 17,225 | 54,672 | 52,050 | ||||||||
| Operating income (loss) | (2,789 | ) | 2,150 | (2,891 | ) | 285 | ||||||
| Other (expense) income, net | 929 | 170 | 1,585 | 992 | ||||||||
| Income (loss) before taxes | (1,860 | ) | 2,320 | (1,306 | ) | 1,277 | ||||||
| Income tax benefit (expense) | 2,990 | (172 | ) | 2,875 | (326 | ) | ||||||
| Net income | $ | 1,130 | $ | 2,148 | $ | 1,569 | $ | 951 | ||||
| Income tax (benefit) expense | (2,990 | ) | 172 | (2,875 | ) | 326 | ||||||
| Interest expense (income), net | (271 | ) | (269 | ) | (1,133 | ) | (1,154 | ) | ||||
| Depreciation and amortization | 327 | 194 | 858 | 824 | ||||||||
| Non-cash stock-based compensation | 8 | 28 | 33 | 54 | ||||||||
| Adjusted EBITDA* | $ | (1,796 | ) | $ | 2,273 | $ | (1,548 | ) | $ | 1,001 | ||
| *Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||||||||||
| BALANCE SHEETS | December 31, 2025 | December 31, 2024 | ||||||||||
| (In thousands) | ||||||||||||
| Total current assets | $ | 58,560 | $ | 51,185 | ||||||||
| Total assets | $ | 88,349 | $ | 82,938 | ||||||||
| Total current liabilities | $ | 36,846 | $ | 34,720 | ||||||||
| Total stockholders' equity | $ | 29,429 | $ | 27,702 | ||||||||
The information contained in this report contains forward-looking statements (as such term is defined in the Securities Exchange Act of 1934 and the regulations thereunder). These forward-looking statements may include projections of, or guidance on, the Company’s future financial performance, expected levels of future revenue and expenses, anticipated growth strategies, and anticipated trends in the Company’s business or financial results. When used in this report, words such as “anticipates”, “continue”, “believes”, “could”, “estimates”, “expects”, “may”, “plans”, “potential”, “future”, “intends”, the negative of these terms and similar expressions identify forward-looking statements. Any forward-looking statement made by the Company in this document is based only on the Company’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business based on information currently available to the Company and speaks only as of the date when made. Forward-looking statements are not historical facts or guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, many of which are outside of the Company’s control. Actual results may differ materially from this forward-looking information and therefore should not be unduly relied upon. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the possibility of a downturn or disruptions in the U.S. economy; the impact of US tariff policies; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Jonathan Newton
Investor Relations
Phone: 516-997-4600
Email: jnewton@vasocorporation.com
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