MIND CTI Reports Third Quarter 2025 Results
MWN-AI** Summary
MIND C.T.I. LTD (NasdaqGM: MNDO), a prominent provider of integrated billing and customer care solutions, reported its third-quarter results for 2025, showcasing a mixed performance compared to the previous year. Revenues amounted to $4.8 million, a decrease from $5.2 million in Q3 2024. Operating income also saw a slight dip, from $0.7 million last year to $0.6 million this quarter, while net income was $0.7 million, equating to $0.03 per share, down from $0.9 million or $0.05 per share in Q3 2024.
Notably, cash flow from operations improved to $1.2 million, up from $1.0 million a year earlier, highlighting the company's solid cash management. By September 30, 2025, MIND maintained a healthy cash reserve of $12.5 million.
Throughout the first nine months of 2025, total revenues reached $14.6 million, a decline from $16.2 million in the same period of 2024. Operating income halved from $3.1 million to $1.3 million, with net income also decreasing from $3.4 million ($0.17 per share) to $1.7 million ($0.08 per share).
CEO Ariel Glassner emphasized advancements in MIND’s technology, particularly in 5G, cloud, and AI, while expressing confidence in the company's strategic positioning for future growth despite current market challenges. The company received multiple follow-on orders, indicating strong customer confidence and ongoing reliance on its solutions.
The Board of Directors has shifted its capital return policy to a share repurchase program, committing up to $2.4 million for buybacks, reflecting confidence in MIND’s operational strength and alignment of shareholder interests. Overall, the quarter illustrates resilience amid industry headwinds, with a focus on innovation and customer trust.
MWN-AI** Analysis
MIND C.T.I. Ltd.'s third-quarter results for 2025 reflect a mixed performance amid a challenging market landscape. Revenues decreased to $4.8 million from $5.2 million year-over-year, highlighting a slight decline, while operating income and net income also showed downward trends. However, it is important to note that cash flow from operating activities improved, indicating better efficiency in cash management.
The company’s reliance on maintenance and additional services, which constituted 96% of total revenues, emphasizes the stability of recurring revenue amidst fluctuations in license sales. Notably, MIND's focus on established markets, with Europe generating 59% of revenue, suggests a strong foothold that could be beneficial in a recovery phase. Their recent follow-on orders also signal confidence from existing customers, serving as a positive indicator of future performance.
As for MIND's strategy going forward, the Board's decision to shift from annual dividends to a share repurchase program illustrates a concerted effort to enhance shareholder value through disciplined capital allocation. This move may provide a catalyst for stock price appreciation, especially given the company’s solid cash position of $12.5 million.
For investors, while the declines in revenue and income call for caution, the operational improvements and strategic shifts provide a foundation for potential growth. Monitoring market conditions, particularly in the telecommunications realm as 5G and AI technologies gain traction, will be crucial.
In summary, MIND C.T.I. is positioned in a resilient niche, with opportunities for growth. Investors should keep an eye on the company's execution of its technology roadmap and the impact of macroeconomic conditions on its revenue streams, as these will likely influence market performance in the coming quarters.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
YOQNEAM, Israel, Nov. 12, 2025 (GLOBE NEWSWIRE) -- MIND C.T.I. LTD (NasdaqGM: MNDO ), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product-based solutions for service providers, unified communications (UC) analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its third quarter ended September 30, 2025.
The following will summarize our major achievements in the third quarter of 2025, as well as our business. Full financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.
Q3 2025 Financial Highlights
- Revenues were $4.8 million, compared with $5.2 million in the third quarter of 2024.
- Operating income was $0.6 million, compared to $0.7 million in the third quarter of 2024.
- Net income was $0.7 million, or $0.03 per share, compared to $0.9 million, or $0.05 per share in the third quarter of 2024.
- Cash flow from operating activities was $1.2 million, compared with $1.0 million in the third quarter of 2024.
- Multiple follow-on orders.
- Cash position was $12.5 million as of September 30, 2025.
Nine Months Financial Highlights
- Revenues were $14.6 million, compared with $16.2 million in the first nine months of 2024.
- Operating income was $1.3 million, compared to $3.1 million in the first nine months of 2024.
- Net income was $1.7 million, or $0.08 per share, compared to $3.4 million, or $0.17 per share in the first nine months of 2024.
- Cash flow from operating activities in the first nine months of 2025 was $2.8 million, compared to $3.8 million in the first nine months of 2024.
Ariel Glassner, MIND CTI’s Chief Executive Officer, commented: “In the third quarter, we successfully delivered a significant extension of our solution to an existing customer, demonstrating our ability to execute on time and within budget. We remain focused on advancing our technology roadmap – including 5G, cloud, AI technologies - and strengthening our operational foundation.
While the near-term environment remains challenging, I am confident that our consistent efforts will position MIND for potential growth, once market conditions improve. Our commitment to innovation, operational excellence, and customer trust remains unwavering.”
Revenue Distribution for Q3 2025
Revenues in Europe represented 59% (including the messaging segment revenues in Germany that represented 36%), the Americas represented 35%, and the rest of the world represented 6% of total revenues.
Revenues from our Customer care and billing software were $2.3 million, or 47% of total revenues, enterprise messaging were $1.7 million, or 36% of total revenues, and enterprise call accounting software were $0.8 million, or 17% of total revenues.
Revenues from maintenance and additional services were $4.7 million, or 96% of total revenues, while licenses were $0.1 million, or 4% of total revenues.
Revenue Distribution for Nine Months 2025
Revenues in Europe represented 60% (including the messaging segment revenues in Germany that represented 36%), the Americas represented 33%, and the rest of the world represented 7% of total revenues.
Revenues from our Customer care and billing software were $7.0 million, or 48% of total revenues, enterprise messaging were $5.3 million, or 36% of total revenues, and enterprise call accounting software were $2.3 million, or 16% of total revenues.
Revenues from maintenance and additional services were $14.0 million, or 96% of total revenues, while licenses were $0.6 million, or 4% of total revenues.
Follow-on Orders
Our customers continue to rely on our solutions and expand their use of our technology. This quarter, we received follow-on orders from existing customers for additional functionality and system enhancements including a major infrastructure upgrade from an existing long-term customer, reflecting their ongoing confidence in our platform.
MIND’s Board of Directors Approves Plan to Repurchase Up to $2.4 Million of Outstanding Ordinary Shares
MIND today announced that its Board of Directors approved a change to the Company’s capital return policy for the current period, transitioning from its prior annual dividend to a share repurchase program.
The Board’s resolution reflects a continued commitment to disciplined capital allocation and shareholder value creation. Given MIND’s cash generation and solid balance sheet, the Board believes that the buyback can be done without sacrificing expansion and growth plans. We believe that at this time, the repurchase of our shares will deliver value to our shareholders and is one of the most appropriate uses of our resources.
Under the repurchase program in an amount in cash of up to $2.4 million, share purchases may be made from time to time depending on market conditions, share price, trading volume and other factors. The repurchase may be suspended from time to time or discontinued.
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company’s business strategy are "forward-looking statements", including estimations relating to the impact of the political situation in Ukraine, expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. These statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company’s annual report and other filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.
For more information please contact:
Janice Kaye
MIND C.T.I. Ltd.
Tel: +972-4-993-6666
[email protected]
FAQ**
What specific strategies does MIND C.T.I. Ltd. MNDO plan to implement to reverse the trend of declining revenues observed in Q3 2025 compared to Q3 2024?
With the announcement of a share repurchase program, how does MIND C.T.I. Ltd. MNDO intend to balance shareholder returns with its expansion and growth strategies?
What are the key drivers behind the significant reliance on maintenance and additional services, which made up 96% of total revenues for MIND C.T.I. Ltd. MNDO in Q3 2025?
How does MIND C.T.I. Ltd. MNDO plan to enhance its technology roadmap, particularly in 5G, cloud, and AI, to maintain competitiveness in a challenging market environment?
**MWN-AI FAQ is based on asking OpenAI questions about MIND C.T.I. Ltd. (NASDAQ: MNDO).
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