AvidXchange Holdings, Inc. SEC 10-Q Report

AvidXchange Holdings, Inc., a leading provider of accounts payable (AP) automation software and payment solutions for middle-market businesses, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational achievements during the period, reflecting both growth and challenges in various aspects of its business.

Financial Highlights

Total Revenues: AvidXchange reported total revenues of $110.57 million for the second quarter of 2025, marking a 5.2% increase from the same period in 2024. This growth was driven by an increase in software and payment revenue.

Loss from Operations: The company experienced a loss from operations amounting to $(12.41) million, compared to $(2.10) million in the prior year period. The increased loss was primarily due to higher operating expenses.

Net (Loss) Income: AvidXchange reported a net loss of $(9.46) million, a significant decline from the net income of $0.44 million in the same period last year. This was largely impacted by higher general and administrative expenses.

Net (Loss) Income Per Share, Basic and Diluted: The net loss per share was $(0.05), compared to $0.00 in the prior year period, reflecting the net loss incurred during the quarter.

Business Highlights

Revenue Segments: AvidXchange's revenue is primarily derived from three segments: software revenue, payment revenue, and services revenue. Software revenue is generated from fees based on the number of invoices and payment transactions processed, as well as recurring maintenance and SaaS fees. Payment revenue comes from electronic payment solutions, fees from the invoice payment accelerator product, and interest on funds held for buyers. Services revenue includes fees for processing buyer change in service requests.

Sales Units: The company processed 20,094,193 transactions in the three months ended June 30, 2025, representing a 1.8% increase from the same period in 2024. For the six months ended June 30, 2025, transactions processed totaled 39,775,912, a 1.9% increase from the prior year.

Transaction Yield: The transaction yield for the three months ended June 30, 2025, was $5.50, a 3.2% increase from the same period in 2024. For the six months ended June 30, 2025, the transaction yield was $5.49, a 1.7% increase from the prior year.

Total Payment Volume: Total payment volume for the three months ended June 30, 2025, was $21,455 million, a 4.1% increase from the same period in 2024. For the six months ended June 30, 2025, total payment volume was $42,057 million, a 3.9% increase from the prior year.

Macroeconomic Environment Impact: Economic uncertainty, including factors like tariff and global trade policy, monetary policy, and inflation, has impacted business confidence and customer purchasing decisions. This has affected payment volumes, payment amounts, and payment type mix, as well as software revenue and the number of invoices processed.

Future Outlook: The company expects total revenue to increase year over year due to an increase in the number of transactions processed and the number of buyers and suppliers using the AvidPay Network. Payment revenue is expected to comprise a greater proportion of total revenue as transaction volumes on the AvidPay Network continue to grow.

SEC Filing: AvidXchange Holdings, Inc. [ AVDX ] - 10-Q - Aug. 06, 2025