MeridianLink (MLNK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $81.5M, up 5% year-over-year, led by 10% growth in lending software solutions revenue; net loss narrowed to $4.7M, and adjusted EBITDA was $34.8M (43% margin).

• Leadership transition: Larry Katz to become CEO effective October 1, 2025, with Nicolaas Vlok moving to a board role; Troy Coggiola appointed Chief Strategy Officer in April 2025.

• Record bookings, strong new logo momentum, and increased mix of larger deals, especially in mortgage lending.

• Cash flow from operations improved to $42.4M, with free cash flow at $40.6M (50% of revenue).

• Continued focus on innovation, customer experience, and talent development to drive long-term growth.

Financial highlights

• Q1 2025 total revenue was $81.5M, up 5% year-over-year; lending software solutions revenue grew 10% to $67.1M, while data verification software revenue declined 15% to $14.4M.

• Adjusted EBITDA was $34.8M (43% margin); adjusted gross margin was 74%; gross profit was $53.8M (66% margin).

• Free cash flow margin was 50%; cash and equivalents ended at $128.9M.

• Net loss narrowed to $4.7M, or (5.7)% of revenue; non-GAAP net income was $7.1M (9% margin).

• Share-based compensation expense increased to $12.4M year-over-year.

Outlook and guidance

• 2025 GAAP revenue expected between $326M and $334M, up 3%-6% year-over-year; adjusted EBITDA guidance is $131.5M-$137.5M (41% margin midpoint).

• Consumer lending projected to grow ~7% in 2025; mortgage to contribute ~18.5% of revenue.

• Guidance remains unchanged despite macro uncertainty, elevated interest rates, and potential for lower lending volumes.

• Margin expected to contract slightly in H2 2025 due to investments.

• Company believes current liquidity and cash flows are sufficient for at least the next twelve months.