Arizona Tribune - SOBRsafe Reports First Quarter 2025 Results

First Quarter 2025 Operational and Financial Highlights

• Achieved an 80.5% increase in total revenue compared to the prior-year quarter, with an improved gross margin of 58.8%.

• Net loss improved significantly to $1.9 million, compared to $2.5 million in the first quarter of 2024.

• Annual recurring revenue from software subscription sales increased 109.6% year-over-year, representing 53.8% of total revenue.

• Received approximately $3.3 million in net proceeds from the exercise of outstanding warrants issued in connection with the October 2024 PIPE financing, bringing the Company's cash balance to $10.1 million at the end of the first quarter 2025.

• Deployed 148 SOBRsure^TM devices in the first quarter, an increase of 41.0% compared to December 31, 2024.

• Appointed Kris Pederson to the Board of Directors, adding deep expertise in governance, digital innovation, and strategic execution to support long-term scalable growth.

• Enhanced SOBRsafe's patent-pending software technology, including updates to the mobile application with streamlined administration, improved notification protocols and Bluetooth connectivity, and a new user interface.

• Added Dr. Benjamin Sanchez as a Scientific Advisor to support non-dilutive federal funding and licensing opportunities, and clinical research partnerships through his expertise in bioimpedance technologies and digital health systems.

"In the first quarter of 2025, we continued to make substantial progress towards sustainable long-term growth, with a marked 80.5% increase in year-over-year revenue and a significant improvement in gross margin to 58.8%,"said SOBRsafe Chairman and CEO David Gandini. "Driving our revenue growth was a 41.0% increase in SOBRsure^TM devices deployed compared to fiscal 2024 year-end, reflecting improved brand awareness and a rising demand for our innovative solutions. While we remain in the early stages of commercialization, this strong year-over-year improvement is a testament to our disciplined strategy focused on technological innovation, targeted deployment, and brand establishment.

"To further capitalize on this increasing momentum, we rolled out updates to our mobile application, including improved administrative tools, upgraded notification protocols, and a redesigned user interface. These improvements, shaped by direct client feedback, are designed to elevate usability and drive stronger engagement. We also completed independent third-party validation of our hardware platform and embedded sensors, a key milestone that enhances our credibility with institutional buyers and will accelerate future adoption.

"The first quarter represents important progress in refining our product, bolstering our go-to-market foundation, broadening awareness of the SOBRsafe brand, and strengthening our leadership, all of which positions us nicely to expand SOBRsafe's global footprint. Our focus on operational execution is laying a solid foundation to accelerate adoption of our innovative solutions and create scalable growth in a critical and underserved category in the years to come."

First Quarter 2025 Financial Results

Revenue in the first quarter of 2025 increased 80.5% to $86.6 thousand compared to $48.0 thousand for the same period in 2024 and increased 34.4% compared to the fourth quarter of 2024. The sequential and year-over-year increase was primarily due to the deployment of additional unique devices, including the release of our second generation SOBRsure^TM device, and a targeted marketing strategy.

Gross profit in the first quarter of 2025 increased considerably to $51.0 thousand compared to $23.2 thousand for the same period in 2024. Gross margin was 58.8% in the first quarter of 2025, up significantly from 48.4% in the first quarter of 2024. The year-over-year margin expansion was driven by an increase in software subscriptions and higher sales for the Company's SOBRsure^TM device.

Operating expenses in the first quarter of 2025 were $2.0 million compared to $1.7 million for the same period in 2024. The increase was largely due to additional general and administrative expenses from growing the Company's employee headcount and partially offset by a decreased reliance on and in third-party professional service and consulting fees.

Net loss in the first quarter of 2025 improved substantially to $(1.9) million, or $(0.66) per diluted share, compared to a net loss of $(2.5) million, or $(70.06) per diluted share, for the same period in 2024. The improvement reflects the higher level of gross profit generated during the quarter. Note, the earnings per diluted share in prior year period has been adjusted for the 1-for-110 and 1-for-10 reverse split of the Company's common stock on the Nasdaq Capital Markets effected October 2, 2024 and April 4, 2025, respectively.

Cash and cash equivalents were $10.1 million at March 31, 2025, compared to $8.4 million at December 31, 2024. The Company received proceeds of approximately $3.3 million, from the exercise of outstanding warrants during the first quarter of 2025 which were issued in conjunction with 2024 PIPE financing completed in October 2024.

About SOBRsafe™

Through next-generation alcohol detection technology, we enable trust and empower recovery ... with a human touch. SOBRsafe's advanced transdermal (touch-based) technology detects and reports in real-time the presence of alcohol as emitted through a user's skin - no breath, blood, or urine samples are required. With a powerful backend data platform, SOBRsafe provides passive, dignified screening and monitoring solutions for the behavioral health, family law and consumer markets, and for licensing and integration. To learn more, visit www.sobrsafe.com.

Safe Harbor Statement

Our prospects here at SOBRsafe are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words "believes", "expects", "anticipates", "intends", "estimates", "plans", "projects", "should", or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.

Company Contact:
[email protected]

Investor Relations Contact:

Scott Liolios or Taylor Stadeli
Gateway Group
949-574-3860
[email protected]

SOURCE: SOBR Safe, Inc.

View the original press release on ACCESS Newswire

W.Morales--AT