Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) has reported its audited financial results for the 15-month period ended March 31, 2025, which showed strong progress in gross profitability and cost discipline.
Gross profit increased 55% to $2.24 million from $1.45 million in the previous 12-month period, while gross margin expanded to 64% from 29%.
These gains were attributed to the company's ongoing shift toward scalable, productized AI-powered platforms and bundled solutions.
The company also reported improvements in cost control, reducing operating cash burn by 58% to $5.56 million. Adjusted operating loss, excluding non-cash items, improved by 56% to $6.07 million.
Sales and marketing expenses decreased by 55% to $2.03 million, general and administrative cash costs declined 41% to $4.50 million, and research and development spending was down 45% to $1.78 million.
"We are executing on a focused strategy of margin expansion, disciplined cost management, and recurring revenue growth," Nextech3D.ai CEO Evan Gappelberg said in a statement.
"The 55% increase in gross profit alongside a 58% reduction in cash burn is a clear validation of our operating model. With a leaner structure, higher-margin business lines, and growing customer demand, we are entering a new chapter of scale and efficiency."
Revenue for the period totalled $3.49 million, down 31% from $5.03 million, a decline the company attributed to a temporary slowdown in its 3D model business during operational restructuring.
Deferred revenue rose 46% to $498,171, supported by strong customer prepayments and solid forward bookings.
Looking ahead, the company said it remains focused on scaling its AI-powered 3D solutions and aims to drive profitable, recurring growth in fiscal 2025 and beyond.
Nextech3D.AI’s Map D platform now serves over 500 customers with 95% gross margins, with revenue expected to grow as new features roll out.
Canadian-listed shares of Nextech added 25% in Wednesday morning trading to reach C$0.10.