CreditRiskMonitor Announces Second Quarter Results

TARRYTOWN, NY / ACCESS Newswire / August 6, 2025 / CreditRiskMonitor.com, Inc. (OTCQX:CRMZ) reported operating revenues of $5.1 million, an increase of approximately $126 thousand or 3%, for the second quarter of fiscal 2025 compared to the same period of fiscal 2024. The Company reported pre-tax income of approximately $301 thousand, an increase of approximately $131 thousand or 77%, for the second quarter of fiscal 2025 compared to the same period of fiscal 2024. The increase in pre-tax profitability was primarily driven by a decrease in expenses related to employee salaries, employee benefits, and commissions. The Company reported net income of approximately $230 thousand, an increase of approximately $100 thousand or 78%, for the second quarter of fiscal 2025 compared to the same period of fiscal 2024.

Mike Flum, CEO, said, "The second quarter was dynamic for us as we geared up to launch our revamped Client Services model and new Customer Relationship Management ("CRM") platform for Q3. Subscribers now have a support team that includes client success and sales representatives, following more systematic processes with enhanced tracking focused on driving value creation for clients. Customer service is paramount to our success and is consistently mentioned as one of our distinctions when compared to our competition. These changes should improve customer satisfaction while also promoting increases in gross and net revenue retention. The new CRM also unites our marketing and revenue teams on a single platform that should improve transparency and accountability at all levels of the Go-To-Market effort. While these modifications pose some risk to our short-term performance while the teams assimilate to the new systems, they will support far greater efficiency and performance in the long term.

We're also very excited about some upcoming feature releases later this year, including our new Financial Analyst Strength Test or FAST Rating, an update to the FRISK Score, enhanced industry norms benchmarking, and more. The Company is also working on some interesting conversational AI use cases, which may start rolling out into beta testing as well.

On the macroeconomic front, we continue to see increasing bankruptcy rates across all market size segments, with some notable recent bankruptcies in the over $1 billion liability filers, including Wolfspeed Inc., Del Monte Foods Inc., At Home Group Inc., and Everstream Solutions LLC, to name a few. Recent economic reporting for the U.S. market also points toward increasing recession risks, with nonresidential business investment contributing only 0.27% to Q2 U.S. GDP and the July jobs data calling the labor market's resiliency in the face of tariffs into question. All of these conditions increase demand for our services and we started to see some of our pending deals close in Q2 as businesses moved out of the ‘wait & see' strategy that dominated the prior 2 quarters."