Summary
AvePoint crossed the $100 million quarterly revenue mark for the first time in the second quarter of fiscal 2025. Total revenue was $102.0 million, up 30.9% from the prior-year quarter. For the six months ended June 30, 2025, revenue was $195.1 million, up 27.9% from the prior-year period. Total annual recurring revenue reached $367.6 million as of June 30, 2025, up 27% year over year both on a reported basis and when adjusted for foreign exchange. Dollar-based net retention was 112%, while dollar-based gross retention was 88% as reported and 89% adjusted for FX. The company said more than 25,000 customers and approximately 5,000 managed service providers use its platform.
Profitability improved sharply on a GAAP basis. Gross profit was $75.5 million, up 28.0% from the prior-year quarter, though gross margin slipped 1.7 percentage points to 74.0%. Year-to-date gross profit was $144.7 million, up 27.9%, with gross margin flat at 74.2%. Operating income was $7.1 million, compared with an operating loss in the prior-year quarter, and operating margin was 7.0%, up 9.7 percentage points. Year-to-date operating income was $10.4 million, and operating margin was 5.3%, up 8.8 percentage points. Net income was $2.70 million for the quarter and $6.14 million year to date. Diluted EPS was $0.01 for the quarter and $0.03 year to date, both positive and up from prior-year losses.
Non-GAAP results also scaled. Non-GAAP gross profit was $76.3 million, and non-GAAP gross margin was 74.8% compared with 76.2% in the prior-year quarter. Non-GAAP operating income was $18.8 million, compared with $8.7 million in the prior-year quarter. Non-GAAP operating margin was 18.4% compared with 11.2%.
Cash generation was mixed. Operating cash flow was $20.27 million in the quarter, up 25.4% from the prior-year quarter. For the six months ended June 30, 2025, operating cash flow was $20.76 million, down 13.2% from the prior-year period. Capital expenditures were $0.96 million in the quarter and $2.48 million year to date, up 144.9% and 176.7% respectively. Deferred revenue was $170.24 million as of June 30, 2025, up 34.9% from the prior-year quarter. Remaining performance obligations were $460.30 million, up 42.3%. The deferred revenue and RPO figures point to a growing backlog.
Management raised full-year guidance for all metrics. For the third quarter of 2025, the company guided to year-over-year revenue growth of 18% to 20%, or 16% to 18% on a constant currency basis, plus non-GAAP operating income of $18.0 million to $19.0 million. For the full year 2025, the outlook now calls for total ARR of $412.8 million to $418.8 million, year-over-year growth of 26% to 28%, or 24% to 26% adjusted for FX. Full-year revenue growth is guided to 23% to 24%, or 21% to 22% on a constant currency basis, alongside non-GAAP operating income of $68.3 million to $70.8 million.
Product momentum centered on the AvePoint Confidence Platform, which added Risk Posture, Optimization ROI, and Resilience command centers along with advanced Agentic AI security features and Copilot agent protection. The AvePoint Elements Platform gained user lifecycle and device management, marketplace integration, and risk user insights for managed service providers. AvePoint was named to Inc.'s Best Workplaces list for the second consecutive year.
Risks remain. The software and cloud services markets are highly competitive and rapidly changing, and customer preferences can shift. International operations generate a significant portion of revenue and expenses, so foreign exchange swings can affect results. Macroeconomic and geopolitical conditions are uncertain. Maintenance revenue is expected to decline as the company shifts away from perpetual licenses toward SaaS and term licenses, and services revenue can fluctuate because it is not recurring. Gross margin may fluctuate period to period, though management expects it to increase over the long term as SaaS mix rises. The OBBBA tax law signed on July 4, 2025 is under assessment. Seasonality matters too: the first quarter is historically the lowest revenue quarter and the fourth quarter the highest. AvePoint also maintains a $30.0 million revolving line of credit with a $20.0 million accordion feature, maturing on November 3, 2026, and had no borrowings outstanding as of June 30, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $102.0M | $93.1M | +9.6% | $78.0M | +30.9% |
| Gross profit | $75.5M | $69.2M | +9.2% | $59.0M | +28.0% |
| Gross margin | 74.0% | 74.3% | -0.3 pp | 75.7% | -1.7 pp |
| Research & development | $13.0M | $12.7M | +2.1% | $12.5M | +3.7% |
| Sales & marketing | $35.8M | $34.5M | +3.6% | $30.5M | +17.4% |
| General & administrative | $19.7M | $18.7M | +5.6% | $18.2M | +8.4% |
| Total operating expenses | $68.4M | $65.9M | +3.9% | $61.2M | +11.9% |
| Operating income (loss) | $7.1M | $3.3M | +115.8% | -$2.1M | +431.8% |
| Operating margin | 7.0% | 3.5% | +3.4 pp | -2.7% | +9.7 pp |
| Net income (loss) | $2.9M | $3.6M | -18.9% | -$12.9M | +122.4% |
| Net margin | 2.8% | 3.8% | -1.0 pp | -16.6% | +19.4 pp |
| Diluted EPS | $0.01 | $0.02 | -$0.01 | — | — |
| Net retention rate | 112.0% | 111.0% | +1.0 pp | 110.0% | +2.0 pp |
Risks
MD&A states demand for the company's software and services is correlated to global macroeconomic and geopolitical factors that remain dynamic and unpredictable, and could materially adversely affect global trade, currency exchange rates, regional economies and the global economy, increasing costs, disrupting supply chain, and reducing sales and earnings.
MD&A notes the software and cloud-based services markets are dynamic and highly competitive, with competitors developing new software and deploying competing cloud services while customer preferences evolve rapidly. The company must continue to evolve and adapt, and investments in infrastructure, research and development, marketing, and geographic expansion will continue to increase operating costs and may decrease operating margins.
MD&A states the company's success is highly dependent on its ability to attract and retain qualified employees, and it competes for talented individuals globally by offering an exceptional working environment, broad customer reach, scale in resources, career growth, and competitive compensation and benefits.
MD&A states international operations provide a significant portion of total revenues and expenses, many of which are denominated in currencies other than the U.S. dollar, so changes in foreign exchange rates may significantly affect revenue and expenses.
MD&A states maintenance revenue is expected to continue declining as the company has shifted away from the sale of perpetual licenses and toward SaaS and term licenses. Without perpetual license sales, there will be limited opportunities to sell maintenance contracts to new customers, and existing customers have and will continue to transition to SaaS and term licenses.
MD&A states the effective tax rate could be affected by the relative proportion of foreign to domestic income, use of foreign tax credits, changes in the valuation of deferred tax assets and liabilities, applicability of valuation allowances, and changes in tax laws in jurisdictions where the company operates. If the company determines deferred tax assets will not be realized, it may set up a valuation allowance resulting in income tax expense.
MD&A states the OBBBA was signed into law on July 4, 2025, with multiple effective dates, certain provisions effective in 2025 and others implemented through 2027. The company is currently assessing its impact and will recognize income tax effects beginning in the period in which the OBBBA was signed into law.
SaaS KPIs
All quarters →Non-GAAP operating margin
Total ARR
Dollar-based net retention rate
Total customers
Non-GAAP Gross Margin
Dollar-Based Gross Retention Rate (as-reported)
Dollar-Based Gross Retention Rate (FX-adjusted)
Summary, forecast, risks and KPIs are extracted from AvePoint, Inc.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.