Revenue for the third quarter of 2025 rose to $1.45 million, a 272% increase from the $390,000 reported in Q3 2024. The jump is largely driven by a surge in hardware sales and recurring cloud‑video subscriptions, which together accounted for more than 80% of the top‑line growth. Gross profit climbed to $720,000, up 1,070% from $64,000 a year earlier, reflecting higher margin recurring revenue and improved operational leverage as the platform scales.
The company posted a net loss of $2.06 million, a widening of $0.34 million from the $1.72 million loss in the same quarter last year. The loss is attributed to continued investment in sales, marketing, and product development, as well as the launch of the Mobile Surveillance Trailer Alpha. Earnings per share were –$0.13, falling short of the consensus estimate of –$0.10, a miss of $0.03.
Year‑to‑date signed‑contract volume reached $4.79 million, driven by a third‑party customer‑financing program that removes upfront costs for customers and accelerates revenue recognition. The partnership, with a leading technology‑equipment financing provider, has helped the company secure larger contracts and expand into new verticals.
Operationally, Cloudastructure deployed its AI surveillance and remote‑guarding platform at two luxury multifamily properties in Columbia, Maryland, marking its first engagement with a top‑tier operator that manages more than 30,000 units. The company also launched the Mobile Surveillance Trailer Alpha, a solar‑powered, battery‑backed solution that extends cloud‑based security to temporary construction job sites.
Investors reacted negatively to the earnings release, citing concerns over the widening net loss and high operating expenses, even as revenue growth exceeded expectations. The market’s focus on profitability highlights the tension between rapid top‑line expansion and the company’s current burn.
CEO James McCormick emphasized that 2025 is a pivotal year, noting that the company’s “rapid growth reflects both the rising demand for smarter security solutions and the confidence our customers place in our vision of a fully connected, AI‑powered ecosystem.” He added that the firm is maintaining a 99% customer retention rate, holds $6.4 million in cash, and has authorized a $5 million share‑repurchase program.
Looking forward, Cloudastructure remains focused on scaling infrastructure, expanding its financing program, and leveraging its compression technology—capable of reducing bandwidth consumption by up to 50%—to drive further adoption. The company’s competitive positioning in the AI surveillance market is reinforced by its 98% threat‑deterrence rate and the Alpha trailer’s recognition as Project Management Solution of the Year at the 2025 PropTech Breakthrough Awards.
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