Altigen Technologies Reports Full Year and Fourth Quarter Fiscal 2025 Results

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Altigen Technologies Reports Full Year and Fourth Quarter Fiscal 2025 Results

TECHNOLOGY 18.12.2025

NEWARK, CALIFORNIA / ACCESS Newswire / December 18, 2025 / Altigen Technologies (OTCQB:ATGN), a leading Silicon Valley-based Microsoft Cloud Communications Solutions provider, announced today its financial results for the fourth quarter and year ended September 30, 2025.

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"Our fiscal fourth quarter represented our sixth consecutive quarter of profitability," said Jeremiah Fleming, Altigen President & CEO. "Our business transformation initiative began with operational improvements which significantly improved our bottom line. In FY25 we introduced an all-new solutions portfolio, the success of which has continued to grow throughout the year. We expect to realize increasing growth as our solutions continue to gain market adoption."

Key Financial Highlights (Fiscal 2025 versus Fiscal 2024)

NetRevenue was $13.9 million, compared with $13.6 million;
Cloud services revenue was $6.9 million, compared with $7.1 million;
Services revenue was $5.9 million, compared with $5.2 million;
Gross margin increased to 63%, compared with 62% in the previous year;
GAAP net income totaled $0.7 million, with diluted EPS of $0.03; compared to $1.6M, with diluted EPS of $0.06, respectively.
Net Revenue decreased 7% to $3.5 million
Cloud services revenue decreased 3% to $1.6 million;
Service and Other revenue decreased 7% to $1.6 million;
Gross margin decreased to 63%, compared with 64%;
GAAP net income was $254 thousand, compared with $2.0 million;
EPS per share was $0.01 vs $0.08

Key Financial Highlights (4Q 2025 versus 4Q 2024)

Net Revenue decreased 7% to $3.5 million
Cloud services revenue decreased 3% to $1.6 million;
Service and Other revenue decreased 7% to $1.6 million;
Gross margin decreased to 63%, compared with 64%;
GAAP net income was $254 thousand, compared with $2.0 million;
EPS per share was $0.01 vs $0.08

Select Financial Metrics: Fiscal 2025 versus Fiscal 2024

Select Financial Metrics
(in thousands, except for EPS and percentages)	Fiscal 4Q25		Fiscal 4Q24		Change		YTD FY2025		YTD FY2024		Change
Total Revenue	$	3,472	$	3,736	-7	%	$	13,867	$	13,619	2	%
Cloud Services	1,635	1,680	-3	%	6,877	7,097	-3	%
Services and Other	1,602	1,731	-7	%	5,926	5,159	15	%
Legacy Products	235	325	-28	%	1,065	1,363	-22	%
Software Assurance	213	315	-32	%	1,001	1,293	-23	%
Perpetual Software License	22	10	120	%	64	70	-9	%
GAAP Operating (Loss)/ Income	$	169	$	209	-19	%	$	619	$	(305	)	-303	%
Operating Margin	5	%	6	%	4	%	-2	%
GAAP Net (Loss)/Income	$	254	$	2,079	-88	%	$	738	$	1,560	-53	%
GAAP (Loss)/ Income Per Share	0.01	0.08	nm		$	0.03	$	0.06	nm
Adjusted EBITDA (1)	$	356	$	507	-30	%	$	1,606	$	495	224	%
Cash Flow from Operations	$	(152	)	$	641	nm		$	1,095	$	510	nm
*nm = not measurable/ meaningful; may not add up due to rounding**

1. Adjusted EBITDA excludes one-time litigation costs, other non-recurring or unusual charges, and other immaterial items that may arise from time to time that we do not consider to be directly related to core operating performance.

Trended Financial Information

(in thousands, except for EPS and percentages)	Fiscal 4Q25		Fiscal 3Q25		Fiscal 2Q25		Fiscal 1Q25		Fiscal 4Q24		Fiscal 3Q24		Fiscal 2Q24		Fiscal 1Q24
Total Revenue	$	3,472	$	3,517	$	3,500	$	3,378	$	3,736	$	3,283	$	3,360	$	3,240
Cloud Services	1,635	1,666	1,856	1,720	1,680	1,710	1,817	1,890
Services and Other	1,602	1,596	1,362	1,366	1,731	1,249	1,183	996
Legacy Products	235	256	282	292	325	324	360	354
Software Assurance	213	242	268	278	315	296	340	342
Perpetual Software License	22	14	14	14	10	28	20	12
GAAP Operating (Loss) / Income	$	198	$	125	$	283	$	75	$	209	$	68	$	(240	)	$	(342	)
Operating Margin	6	%	4	%	8	%	2	%	6	%	2	%	-7	%	-11	%
GAAP Net Income/(Loss)	$	254	$	110	$	287	$	87	$	2,079	$	62	$	(236	)	$	(345	)
Adjusted EBITDA (1)	356	645	314	291	507	214	(67	)	(159	)

Adjusted EBITDA excludes one-time litigation costs, other non-recurring or unusual charges, and other immaterial items that may arise from time to time that we do not consider to be directly related to core operating performance.

Conference Call

Altigen will be discussing its financial results and outlook on a conference call today at 1:00 p.m. Pacific Time (4:00 p.m. ET). The conference call can be accessed by dialing (888) 506-0062 (domestic) or (973) 528-0011 (international), conference ID #539578. To access the replay, dial (877) 481-4010 (domestic) or (919) 882-2331 (international), conference ID #53128. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About Altigen Technologies

Altigen Technologies (OTCQB:ATGN) is focused on driving digital transformation in today's modern workplace.  Our Cloud Communications solutions and Technology Consulting services empower companies of all sizes to elevate customer engagement, increase employee productivity and improve operational efficiency. We're headquartered in Silicon Valley with operations strategically located around the world. For more information, call 1-888-ALTIGEN or visit our website at www.altigen.com.

Safe Harbor Statement

This press release contains forward‐looking information. The statements are based on reasonable assumptions, beliefs and expectations of management and the Company provides no assurance that actual events will meet management's expectations. Furthermore, the forward-looking statements contained in this press release are based on the Company's views of future events and financial performances which are subject to known and unknown risks and uncertainties, including, but not limited to, statements regarding the Company's operational improvements, performance enhancements, AI solution development, and expectations for sustainable growth. There can be no assurances that the Company will achieve the expected results, and actual results may be materially different than expectations and from those stated or implied in forward-looking statements.

Please refer to the Company's most recent Annual Report filed with the OTCQB over-the-counter market for a further discussion of risks and uncertainties. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. The Company does not undertake any obligation to update any forward-looking statements.

Contact:

Altigen Communications, Inc.
Investor Relations - [email protected]

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and per share data)

September 30,
2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	2,750	$	2,575
Accounts receivable, net	2,428	1,770
Other current assets	183	185
Total current assets	5,361	4,530
Operating lease right-of-use assets	40	149
Goodwill	2,725	2,725
Property, plant, and equipment, net	57	-
Intangible assets, net	1,074	1,242
Capitalized software development cost, net	1,621	1,363
Deferred tax asset	5,347	5,638
Other long-term assets	20	2
Total assets	$	16,245	$	15,649
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	608	$	98
Accrued compensation and benefits	625	593
Accrued expenses	221	446
Deferred consideration	372	744
Operating lease liabilities - current	24	104
Deferred revenue - current	563	481
Total current liabilities	2,413	2,466
Operating lease liabilities - long-term	25	49
Deferred revenue - long-term	77	176
Total liabilities	2,515	2,691
Stockholders' equity:
Common stock, $0.001 par value; Authorized 50,000,000 shares; Issued and outstanding 25,847,985 and 24,918,656 shares at September 30, 2025 and 2024, respectively	25	24
Treasury stock at cost 2,492,646 and 1,918,830 shares at September 30, 2025 and 2024, respectively	(1,579	)	(1,565	)
Additional paid-in capital	73,240	73,193
Accumulated deficit	(57,956	)	(58,694	)
Total stockholders' equity	13,730	12,958
Total liabilities and stockholders' equity	$	16,245	$	15,649

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

Three Months Ended						Fiscal Year End
September 30,						September 30,
2025		2024		2025		2024
Net revenue	$	3,472	$	3,736	$	13,867	$	13,619

Gross profit	2,189	2,386	8,683	8,395
Operating expenses:
Research and development	306	885	1,305	4,268
Sales, general & administrative	1,714	1,292	6,759	4,432
Operating income (loss)	169	209	619	(305	)
Interest and other income	393	16	434	52
Interest expense and other expense	(17	)	(3	)	(24	)	(26	)
Net income (loss) before income taxes	545	222	1,029	(279	)
Benefit (provision) for income taxes (1)	(291	)	1,857	(291	)	1,839
Net income (loss)	$	254	$	2,079	$	738	$	1,560
Net income (loss) per share
Basic	$	0.01	$	0.08	$	0.03	$	0.06
Diluted	$	0.01	$	0.08	$	0.03	$	0.06
Weighted average shares used in computing net income (loss) per share
Basic	25,848	24,919	25,848	24,919
Diluted	25,903	25,903	25,903	25,959

(1) The Company's fourth quarter fiscal year 2025 results include a non-cash tax expense of $0.3 million, resulting from the differences between the Company's income tax rate and the statutory rate while the Company's fourth quarter fiscal year 2024 results include a non-cash tax benefit of approximately $1.9 million, primarily due to the release of the valuation allowance for deferred tax assets.

ALTIGEN COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

	Fiscal Year Ended
	September 30,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	738	$	1,560
Adjustments to reconcile net income (loss) to net cash from operating activities:
Impairment of capitalized software	340	53
Impairment of intangible assets	-	142
Depreciation and amortization	-	3
Deferred income tax expense	291	(1,901	)
Amortization of intangible assets	198	184
Amortization of capitalized software	216	375
Adjustment for operating lease expenses	7	(19	)
Stock-based compensation	48	60
Changes in operating assets and liabilities:
Accounts receivable and unbilled accounts receivable	(658	)	(275	)
Prepaid expenses and other current assets	2	51
Other long-term assets	(17	)	(2	)
Accounts payable	511	40
Accrued expenses	(564	)	193
Deferred revenue	(17	)	46
Net cash provided by operating activities	1,095	510
Cash flows from investing activities:
Purchase of intangible assets	(8	)	-
Purchase of software (PPE)	(78	)	-
Capitalized software development costs	(820	)	(576	)
Net cash used in investing activities	(906	)	(576	)

Cash flows from financing activities:
Payment of deferred consideration in business combination	-	-
Repurchase of common stock	(14	)	-
Proceeds from issuances of common stock	-	-
Net cash used in financing activities	(14	)	-
Net increase (decrease) in cash and cash equivalents	175	(66	)
Cash and cash equivalents, beginning of year	2,575	2,641
Cash and cash equivalents, end of year	$	2,750	$	2,575
Supplemental disclosure of Investing and financing activities
Shares repurchased for cashless exercise of stock options	$	(372	)	$	-

SOURCE: Altigen Technologies

View the original press release on ACCESS Newswire

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