CID Holdco Q4 2025 Earnings Report

CID Holdco EPS Results

• Actual EPS: -$0.08
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

CID Holdco Revenue Results

• Actual Revenue: $4.55 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

CID Holdco Announcement Details

• Quarter: Q4 2025
• Date: 3/4/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, March 4, 2026
• Conference Call Time: 4:30PM ET

CID Holdco Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Company completed its transition to commercial operations in 2025, reporting $5.8 million in full‑year revenue and $4.5 million in Q4 driven largely by hardware sales with a 43.7% gross margin.
• Positive Sentiment: Management highlighted the move toward recurring revenue — the first quarterly subscription was booked in Q4, supported by a completed Gen‑3 multi‑tenant SaaS platform and SOC 2 Type 1 certification to sell into enterprise and government accounts.
• Neutral Sentiment: 2026 targets were reaffirmed: bookings of $12–$15 million and revenue of $6–$7.5 million, expected to be back‑end weighted as the company converts device enrollments into multi‑year subscription contracts.
• Negative Sentiment: Profitability remains a near‑term challenge — adjusted EBITDA loss was $2.2 million in Q4 and net loss narrowed to $2.4 million; 2025 results also included roughly $27 million of one‑time IPO/de‑SPAC related expenses.
• Positive Sentiment: Operationally, the company expanded manufacturing capacity in Puerto Rico, built inventory to meet 2026 demand, and grew its partner ecosystem (CanTech, Wiliot, Würth) and executive team to support scaling and go‑to‑market execution.

Presentation

[Operator]

Note this conference is being recorded. I will now turn the conference over to Ed Nabrotzky, CEO. Thank you. You may begin.

[Ed Nabrotzky, CEO at CID HoldCo]

Thank you, operator, and thank you to everyone for joining us today. I'd like to welcome you to our fourth quarter and full year 2025 financial results conference call. Dot Ai offers a solution built on two pillars: a unique IoT implementation for in-process data collection and a modern cloud-based software suite that takes advantage of this new source of data to implement AI workflows. Our solutions give every physical asset a persistent virtual identity, an intelligence of how it fits in the process, and a real-time 3D location. This is what we mean by asset intelligence. Today, that data serves humans primarily through dashboards. Tomorrow, it will serve autonomous systems through APIs. Same infrastructure, exponentially larger emerging market as the AI disruption continues in our industrial verticals. 2025 marked our transition to commercial operations and public company reporting.

[Ed Nabrotzky, CEO at CID HoldCo]

As we move into 2026, our focus is disciplined execution, recurring revenue conversion, and strengthening our financial profile. As you look at our filings, we completed our business combination in June, began trading on Nasdaq, and transitioned from a development-stage company into a commercial enterprise, generating meaningful revenue. Our full year 2025 revenue of $5.8 million from effectively no revenue in the prior year is a testament to the market demand for our asset intelligence platform and the team we've built to capture it. Our fourth quarter capped a year of accelerating momentum and is a leading indicator of progress in our commercial outlook for 2026. Our commercial traction in 2025, particularly in the second half of the year, validated our go-to-market strategy.

[Ed Nabrotzky, CEO at CID HoldCo]

We are deploying our IoT systems across a growing base of customers in multiple applications in preparation for enrollment into our SaaS services. Amongst the strong hardware sales, it's also important to note that our Q4 revenue closed with the first subscription of quarterly recurring revenue, building a strong base to expand subscriptions in 2026. As our subscription model is built on enrollment of devices feeding data to our cloud-based software, hardware sales are a forward indicator of subscription revenue in 2026 and beyond. On the technology front, 2025 saw the completion of our generation three SaaS platform with full multi-tenant architecture. This is the backbone of our recurring revenue model. It enables enterprise-scale deployments with real-time asset visibility, predictive analytics, and seamless integration with existing customer infrastructure.

[Ed Nabrotzky, CEO at CID HoldCo]

We achieved our SOC 2 Type 1 cybersecurity certification during the year, which is a critical requirement for enterprise and government customers. We're also continuing investing in our next generation IoT tracking technology, leveraging UHF, 5G RF, and BLE capabilities. Our manufacturing subsidiary, Dot Works, based in Barceloneta, Puerto Rico, significantly expanded operations during the year. Inventory grew as we built up stock to support the growing order pipeline. This operational build-out positions us to meet the materially high production volumes we expect in 2026 as we execute our plan. We also continue to expand and solidify our software teams in India. A substantial portion of programming is done with talented teams in Bangalore that have been with us for some time and who leverage AI tools to be incredibly efficient in developing and testing our platform. We made significant progress expanding our partner ecosystem in 2025.

[Ed Nabrotzky, CEO at CID HoldCo]

We secured our first international distribution partnership with CanTech Group in Australia, extending our commercial reach into the Asia Pacific region. We announced a strategic partnership with Wiliot to innovate industrial-grade ambient IoT solutions, expanding the capabilities of our platform. We also partnered with Würth Industry North America to bring our asset intelligence technology to the industrial supply chain market. These partnerships validate our platform and extend our go-to-market reach well beyond what our direct sales team can achieve alone. One of the most important accomplishments in 2025 was building the executive team to scale this business. We brought in Delores "Del" Rochester as our Chief Revenue Officer to lead commercial execution. Dr. Ansgar Thiede joined us as Chief Strategy Officer to guide our long-term strategic direction.

[Ed Nabrotzky, CEO at CID HoldCo]

Charles Maddox, one of our co-founders, serves as our Chief Operating Officer and Chief Financial Officer with the assistance of an experienced fractional CFO in Robyn D'Elia to strengthen our financial operations and report as a public company. Our CTO, Vijay Nambiar, is a proven leader of engineering departments and technology companies large and small, most recently coming from the 5G group at Verizon. This team, combined with other talented professionals across the company, give us the horsepower and experience discipline to execute on our ambitious growth plans. The broader market for asset intelligence and real-time supply chain visibility continues to grow rapidly. Industry tailwinds around IoT adoption, AI-driven logistics optimization, and increasing need for real-time asset tracking across multiple verticals are all working in our favor. Tariff policy in the U.S. is driving more business our way as we take advantage of our Made in America position.

[Ed Nabrotzky, CEO at CID HoldCo]

Our competitive differentiation lies in the combination of our proprietary hardware, IoT bridges, and Smart Industrial TAGS with our SaaS platform and AI analytics capabilities. This full stack approach allows us to deliver end-to-end solutions that integrate with customers' existing infrastructure, which we believe is a meaningful competitive advantage. Our channel model enables us to scale quickly and leverage the expertise of partners in adapting our technology to many applications, verticals, and use cases. Looking ahead to 2026, we're affirming bookings guidance of $12 million-$15 million and revenue of $6 million-$7.5 million. These bookings and revenue results will be back-end weighted, occurring mostly in the third and fourth quarter of 2026. While this revenue outlook is more measured than earlier projections, it reflects our strategic shift towards recurring subscription revenue and long-term margin expansion from the earlier hardware transactions reported in the period.

[Ed Nabrotzky, CEO at CID HoldCo]

We expect to book three to five year subscription contracts with a strong customer retention profile as our industrial base relies on our installed hardware for in-process data collection and our software solution for operational execution. The 2026 revenue guidance reflects the strategic shift to long-term contracts in ARR, as well as our confidence in the pipeline we've built, the partnerships we've established, and the operational capacity we now have in place. Note that we've implemented reductions in labor as well as cost controls to constrain spend to align with achievement of important subscriber milestones. Our priorities for 2026 are clear: convert pipeline into revenue, expand our customer base, deepen existing customer relationships, scale our partner ecosystem, and continue to build recurring SaaS revenue as a proportion of the total mix.

[Ed Nabrotzky, CEO at CID HoldCo]

We are laser-focused on execution and building a sustainable, high-growth and ultimately profitable business in the quarters to come. I'd now like to turn the call over to Charles Maddox to walk through some key financial details from the fourth quarter of 2025. Charlie?

[Charles Maddox, COO and CFO at CID HoldCo]

Thank you, Ed. Our 2025 annual results include approximately $27 million of expenses primarily related to our IPO and de-SPAC process earlier this year, including the changes in fair value of SAFE notes and convertible notes, loss on debt extinguishment, transaction costs, and acquisition and integration costs. These are specific to this reporting year. In our reported results today, we have included adjusted EBITDA, a non-GAAP measure, for all periods presented as a supplemental disclosure, excluding the effect of these non-recurring transactions. For the fourth quarter of 2025, adjusted EBITDA totaled a $2.2 million loss as compared to $1.9 million loss in the same year-ago quarter. Revenue for the fourth quarter of 2025 grew to $4.5 million as compared to 0 in the same year-ago quarter.

[Charles Maddox, COO and CFO at CID HoldCo]

The increase was primarily driven by the company's transition from development stage operations to commercial revenue generation following the completion of its business combination in June 2025. Gross profit for the fourth quarter of 2025 grew to $2 million, representing a gross margin of 43.7%, as compared to a gross profit of $0 in the prior year period. The increase in gross profit reflects significant growth in revenue gained almost entirely from hardware sales. Operating expenses in the fourth quarter of 2025 totaled $4.2 million, as compared to $2.4 million in the same year ago quarter. The increase was primarily due to cost of compliance as we worked through the de-SPAC actions and the requirements of operating in a public market.

[Charles Maddox, COO and CFO at CID HoldCo]

Net loss for the fourth quarter of 2025 shrank to $2.4 million, or $0.08 per basic and diluted share, as compared to a net loss of $2.7 million, or $0.22 per basic and diluted share in the same year-ago quarter. Turning to capital allocation and our financial position going forward, as previously disclosed, we have access to an equity line of credit which provides us with meaningful financial flexibility as we scale operations in 2026. Our capital allocation priorities remain focused on investing in revenue-generating activities, including expanding our commercial team, co-marketing, and partner onboarding, as well as technology priorities developing our software platform.

[Charles Maddox, COO and CFO at CID HoldCo]

We will continue to evaluate capital sources thoughtfully and remain focused on aligning capital access with revenue-generating milestones and long-term shareholder value, as shown in our recent S-1 filing outlining a potential secondary capital raise in 2026. This completes my prepared statements. Now, before we begin our question and answer session, I'd like to turn the call back to Ed for some closing remarks. Ed?

[Ed Nabrotzky, CEO at CID HoldCo]

Thank you, Charlie. In summary, 2025 was a foundational year. We went from development stage to nearly $6 million in revenue. Our Q4 momentum is carrying into 2026 and will show up later in the year as subscriptions. We have the team, the technology, and the partnerships in place to execute on our revenue guidance. We're building something special here at Dot Ai, and we appreciate your support as we continue this journey. With that, operator, let's open the line for questions.

[Operator]

Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from this queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question is from Hunter Diamond with Diamond Equity Research. Please proceed.

[Hunter Diamond, CEO at Diamond Equity Research]

Hi, congrats on the results. I guess near term, where are you seeing the best opportunity? Is it upselling? Is it developing new products? Is it just expanding, geographically? I guess where do you see the most near-term opportunity?

[Charles Maddox, COO and CFO at CID HoldCo]

Our best opportunity, Ed will probably chime in, is what we call our land and expand strategy. We've solved initial problems for our customers. Once we've solved that initial problem, we typically expand and solve additional problems within the same facility. Then we go multiple facilities. So the share of customer is the larger metric, as well as, of course, adding subscribers. The near-term opportunity is the increased share of customers for the existing customers in our pipeline.

[Hunter Diamond, CEO at Diamond Equity Research]

Okay. In terms of new product development, is there a thought, I guess, how much to expend on a new software development versus how much to outsource or use other platforms? What's kind of your take on that high level, in the spending on, because that can run quite a bit of amount, you know, developing new software and AI capabilities.

[Ed Nabrotzky, CEO at CID HoldCo]

Exactly. That's why we brought on Dr. Ansgar Thiede, as we mentioned in the call. Dr. Thiede is our Chief Strategy Officer, and one of his major focuses is building partnerships, both development partnerships and market partnerships. We started this journey intending to build the basic platform, but we recognized we'd have to add in partner modules from different companies and different sources. We're not trying to invent the wheel ourselves. We do recognize there's an ecosystem we can rely on. You'll see in this year a number of strategic relationships in addition to those we announced last year as we build out the platform with additional partner modules.

[Hunter Diamond, CEO at Diamond Equity Research]

Great. No, it makes sense. Thank you for taking my question.

[Operator]

There are no further questions at this time. I would like to hand the conference back over to Ed for some concluding comments.

[Ed Nabrotzky, CEO at CID HoldCo]

First of all, thank you all for joining us and taking the time to listen to this earnings call. We're very proud of our fourth quarter in our 2025 as the first foundational year for us. We are laying the foundation for disciplined scaling, recurring revenue expansion, and we think we have long-term value creation in our sights. We look forward to updating you on our progress in the quarters ahead. Thank you all, and have a great evening.

[Operator]

Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation.

Participants

Analysts

• Charles Maddox, COO and CFO at CID HoldCo
• Ed Nabrotzky, CEO at CID HoldCo
• Hunter Diamond, CEO at Diamond Equity Research