Total revenue for the third quarter ended September 30, 2025 reached $3.98 million, a 19% year‑over‑year increase from $3.35 million in the same period last year. The figure fell short of the consensus estimate of $4.10 million, a miss of $120,000, but the company’s earnings per share of –$0.02 beat analyst expectations of –$0.08 by $0.06, reflecting disciplined cost management amid a revenue shortfall.
The quarter’s net loss widened to $289,745, compared with a $1.86 million loss in Q3 2024, underscoring ongoing profitability challenges. Gross margin held steady at 52%, indicating that the company’s high‑margin telehealth services continue to offset the impact of higher operating expenses. Cash on hand stood at $472,759, and net cash used in operations for the nine‑month period was $1.52 million, a 46% year‑over‑year improvement, suggesting a modestly stronger cash burn profile but still a limited liquidity cushion.
Revenue growth was driven primarily by the integrated telehealth platform and professional services, which together accounted for the bulk of the increase. The full impact of the iDoc acquisition and expanded hospital partnerships also contributed, as the company leveraged iDoc’s customer base to accelerate adoption of its AI‑powered virtual care solutions. Segment‑level data show that technology licensing and telehealth services grew 18% and 22% respectively, while professional services rose 15%, reflecting a favorable mix shift toward higher‑margin offerings.
Management highlighted several strategic milestones that underpin future growth. The company secured FedRAMP High authorization, opening access to federal contracts, and signed a multi‑million‑dollar teleradiology agreement that is expected to double recurring revenue. Integration of ICU robotics and the launch of AI Doctor Notes further position VSee to capture high‑acuity care markets. CEO Dr. Imo Aisiku emphasized that “one remote stroke intervention can save a patient from permanent disability,” underscoring the company’s focus on critical care impact.
Analysts noted that while revenue missed expectations, the EPS beat and resilient gross margin suggest that cost controls are effective and that the company is on a path to profitability. The market reaction has been driven more by the strategic wins—FedRAMP authorization, the teleradiology contract, and ICU robotics—than by the quarterly revenue miss, indicating that investors view VSee’s long‑term growth prospects favorably despite short‑term financial headwinds.
Looking ahead, VSee maintains its guidance for the remainder of 2025, projecting revenue growth of 12% to 15% and a net loss of $1.2 million to $1.5 million for the full year. The company plans to continue investing in AI and high‑acuity care while tightening operating expenses, aiming to improve cash flow and move toward profitability as its strategic contracts mature.
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