POSaBIT Systems Corp. (CSE: PBIT) (OTC: POSAF) reported a $2.1 million loss in its third quarter even though adoption of its new payment platform and expanded merchant base has grown.
The cannabis fintech posted revenue of $4.1 million for the period ending Sept. 30, down 4% from the second quarter. The steeper 70% decline from a year ago largely reflects accounting changes rather than business performance after POSaBIT transitioned merchants to a new payment processing system, according to filings.
POSaBIT’s adjusted gross profit margin was 54% for the quarter. The company maintained a cash position of $900,000.
“We are excited to report that POSaBIT’s new e-commerce menu capability for our POS merchants is getting great reviews, with nearly 40 new merchants in the last 90 days,” CEO Ryan Hamlin said in a statement. “We expect by next year at this time, we will have over 200 merchants using the POSaBIT e-commerce menu.”
The Seattle-based company said it doubled its merchant count in Oregon over the past six months, making it POSaBIT’s second-largest state for point-of-sale operations.
During the quarter, the firm completed migration of payment merchants to its new POSaBIT One platform, which enables multiple payment types through a single terminal. The company also settled litigation with a previous sales agent for $350,000.
For 2025, Hamlin said the company is focused on building cash reserves and expanding both its payments and point-of-sale businesses. He noted POSaBIT is prepared to process “billions of dollars” through its payment solution if cannabis is rescheduled at the federal level.
POSaBIT’s core business metrics showed some underlying strength despite the reported loss. Cash receipts from its technology licensing agreement reached $793,145 in the third quarter, up from $469,839 in the same period last year.
The company’s guidance suggests a $20 million annualized adjusted revenue run rate based on third-quarter results of approximately $5 million. POSaBIT expects these rates to increase as it executes its business plan, according to its news release.
[[{“value”:”POSaBIT highlighted that it transitioned its clients to a new processing platform, leading to a revenue dip.
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