Oblong, Inc. reported its financial results for the second quarter ended June 30, 2025, on August 14, 2025. Total revenue for Q2 2025 was $592,000, a 3% decrease year-over-year. Managed Services revenue declined 2% to $497,000, with one customer accounting for 99% of this segment's revenue. Collaboration Products revenue decreased 10% to $93,000.
Despite revenue declines, consolidated gross profit margin improved significantly to 38% in Q2 2025 from 20% in Q2 2024. This was primarily driven by the Collaboration Products segment, which saw its gross margin rise to 96% from a negative 55% due to headcount reductions and a $19,000 reduction in inventory obsolescence reserve. Operating loss decreased to $(683,000) from $(1,018,000) in the prior year.
The company's new digital asset strategy began to show financial impact, with $2,000 in revenue from digital asset staking and an unrealized gain of $31,000 on digital asset holdings in Q2 2025. Cash and cash equivalents stood at $10.79 million as of June 30, 2025, with working capital of $11.25 million, significantly bolstered by a $7.5 million private placement in June 2025.
Subsequent to quarter-end, in July and August 2025, Oblong further invested $6.35 million in TAO tokens. This brought total holdings to 21,648.76 TAO tokens with a fair value of $7.79 million, all secured in regulated, insured, cold storage with BitGo Trust Company, Inc. The company confirmed that all 21,613 TAO tokens are staked in the Bittensor network with immediate terms, meaning no lock-up period.
Oblong's outlook indicates current cash is sufficient for at least the next twelve months, though additional capital will be required long-term to fund operations and grow its cryptocurrency treasury. The company highlighted substantial risks, including significant customer concentration in its legacy business, dilution from recent private placements, and the ongoing risk of Nasdaq delisting.
New risks associated with the digital asset strategy include high volatility of digital asset prices, regulatory uncertainty regarding asset classification, and security risks of holding digital assets. The company also noted challenges in attracting and retaining skilled personnel in the nascent digital assets ecosystem.
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