What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-07 compared with 2025-05-08 · 443 added, 168 removed, 876 unchanged (41% of the section changed)

1 unchanged sentence

Index to Financial Statements (Unaudited)

Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024

Condensed Consolidated Statements of Income (Loss) for the Three Months Ended March 31, 2025 and 2024

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2025 and 2024

Condensed Consolidated Statements of Mezzanine Equity and Stockholders’ Equity for the Three Months Ended March 31, 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2025 and 2024

Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024

Condensed Consolidated Statements of Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2025 and 2024

Condensed Consolidated Statements of Mezzanine Equity and Stockholders’ Equity for the Three and Six Months Ended June 30, 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024

Notes to Condensed Consolidated Financial Statements

39 unchanged sentences

Common stock, $ 0.0001 par value;

1,000,000 shares authorized, 203,031 and 194,071 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

1,000,000 shares authorized, 211,139 and 194,071 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

13 unchanged sentences

Three Months Ended

Six Months Ended

$ 77,317 $ 53,643 $ 146,259 $ 104,954

Term license and support

8,922 10,983 20,112 20,988

14,486 10,517 25,423 20,998

1,293 2,818 3,288 5,555

Total revenue

102,018 77,961 195,082 152,495

Cost of revenue:

14,023 9,745 26,560 19,515

Term license and support

385 413 796 829

11,920 8,647 22,718 18,720

151 137 304 320

Total cost of revenue

26,479 18,942 50,378 39,384

75,539 59,019 144,704 113,111

Operating expenses:

Sales and marketing

35,773 30,470 70,295 60,409

General and administrative

19,712 18,184 38,379 35,052

Research and development

12,960 12,503 25,649 22,989

Total operating expenses

68,445 61,157 134,323 118,450

Income (loss) from operations

Other income, net

Income before income taxes

7,094 ( 2,138 ) 10,381 ( 5,339 )

Other (expense) income, net

( 240 ) ( 6,970 ) 1,346 ( 3,566 )

Income (loss) before income taxes

6,854 ( 9,108 ) 11,727 ( 8,905 )

Income tax expense

3,961 3,830 5,268 5,987

Net income (loss)

$ 2,893 $ ( 12,938 ) $ 6,459 $ ( 14,892 )

Net income (loss) attributable to noncontrolling interest

195 ( 129 ) 321 ( 367 )

Net income (loss) available to common stockholders

$ 2,698 $ ( 12,809 ) $ 6,138 $ ( 14,525 )

Net income (loss) per share:

$ 0.01 $ ( 0.07 ) $ 0.03 $ ( 0.08 )

Weighted average shares outstanding:

205,068 182,804 201,516 182,150

229,179 182,804 226,951 182,150

See accompanying notes.

3 unchanged sentences

Three Months Ended

Six Months Ended

Net income (loss)

$ 2,893 $ ( 12,938 ) $ 6,459 $ ( 14,892 )

Other comprehensive income (loss) net of taxes

Unrealized loss on available-for-sale securities

( 5 ) ( 41 ) ( 17 ) ( 141 )

Foreign currency translation adjustments

5,983 79 7,131 ( 399 )

Total other comprehensive income (loss)

5,978 38 7,114 ( 540 )

Total comprehensive income (loss)

$ 8,871 $ ( 12,900 ) $ 13,573 $ ( 15,432 )

Comprehensive income (loss) attributable to noncontrolling interest

276 ( 130 ) 432 ( 441 )

Total comprehensive income (loss) available to common stockholders

$ 8,595 $ ( 12,770 ) $ 13,141 $ ( 14,991 )

See accompanying notes.

2 unchanged sentences

(In thousands, except share amounts)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Comprehensive

1 unchanged sentence

Stockholders’

Balance, December 31, 2024

Balance, March 31, 2025

203,030,980 $ 20 $ 873,269 $ ( 515,468 ) $ 1,682 $ 1,950 $ 361,453

Proceeds from exercise of options

1,077,228 — 7,285 — — — 7,285

Common stock issued upon vesting of restricted stock units

1,173,259 — — — — — —

Stock-based compensation expense

— — 11,143 — — — 11,143

Repurchase of noncontrolling interest

— — ( 9,958 ) — 36 ( 2,226 ) ( 12,148 )

Reclassification of warrant liabilities

— — 1,452 — — — 1,452

Proceeds from exercise of warrants

6,271,855 1 72,126 — — — 72,127

Repurchase and retirement of common stock

( 414,328 ) — ( 1,871 ) ( 5,177 ) — — ( 7,048 )

Comprehensive income:

— — — 2,698 — 195 2,893

Unrealized loss on available-for-sale securities

— — — — ( 5 ) — ( 5 )

Foreign currency translation adjustments

— — — — 5,902 81 5,983

Balance, June 30, 2025

211,138,994 $ 21 $ 953,446 $ ( 517,947 ) $ 7,615 $ — $ 443,135

Three Months Ended June 30, 2024

Comprehensive

Noncontrolling

Stockholders’

Balance, March 31, 2024

Three Months Ended March 31, 2024

185,215,633 $ 19 $ 677,926 $ ( 469,517 ) $ 2,693 $ 1,627 $ 212,748

Proceeds from exercise of options

1,092,002 — 2,550 — — — 2,550

Common stock issued upon vesting of restricted stock units

1,002,253 — — — — — —

Stock-based compensation expense

— — 10,538 — — — 10,538

Reclassification of earn-out RSUs to earn-out shares

— — ( 121 ) — — — ( 121 )

Repurchase and retirement of common stock

( 652,582 ) — ( 2,406 ) ( 3,001 ) — — ( 5,407 )

Comprehensive loss:

— — — ( 12,809 ) — ( 129 ) ( 12,938 )

Unrealized loss on available-for-sale securities

— — — — ( 41 ) — ( 41 )

Foreign currency translation adjustments

— — — — 80 ( 1 ) 79

Balance, June 30, 2024

186,657,306 $ 19 $ 688,487 $ ( 485,327 ) $ 2,732 $ 1,497 $ 207,408

See accompanying notes.

AvePoint, Inc.

Condensed Consolidated Statements of Mezzanine Equity and Stockholders’ Equity

(In thousands, except share amounts)

Six Months Ended June 30, 2025

Comprehensive

Noncontrolling

Stockholders’

Balance, December 31, 2024

194,070,512 $ 19 $ 779,007 $ ( 510,448 ) $ 576 $ 1,794 $ 270,948

Proceeds from exercise of options

1,495,597 — 8,029 — — — 8,029

Common stock issued upon vesting of restricted stock units

2,921,254 — — — — — —

Stock-based compensation expense

— — 20,763 — — — 20,763

Repurchase of noncontrolling interest

— — ( 9,958 ) — 36 ( 2,226 ) ( 12,148 )

Reclassification of warrant liabilities

— — 1,452 — — — 1,452

Proceeds from exercise of warrants

13,866,954 2 159,469 — — — 159,471

Repurchase and retirement of common stock

( 1,215,323 ) — ( 5,316 ) ( 13,637 ) — — ( 18,953 )

Comprehensive income:

— — — 6,138 — 321 6,459

Unrealized loss on available-for-sale securities

— — — — ( 17 ) — ( 17 )

Foreign currency translation adjustments

— — — — 7,020 111 7,131

Balance, June 30, 2025

211,138,994 $ 21 $ 953,446 $ ( 517,947 ) $ 7,615 $ — $ 443,135

Six Months Ended June 30, 2024

noncontrolling

Comprehensive

2 unchanged sentences

Balance, December 31, 2023

$ 6,038 $ 6,038 184,652,402 $ 18 $ 667,881 $ ( 460,496 ) $ 3,196 $ 8,207 $ 218,806

Proceeds from exercise of options

— — 1,385,363 — 3,334 — — — 3,334

Common stock issued upon vesting of restricted stock units

— — 3,030,973 1 ( 1 ) — — — —

Stock-based compensation expense

— — — — 19,996 — — — 19,996

Accretion of redeemable noncontrolling interest

( 99 ) ( 99 ) — — — 99 — — 99

Redemption of noncontrolling interest

( 5,926 ) ( 5,926 ) — — 6,379 — 2 ( 6,381 ) —

Reclassification of earn-out RSUs to earn-out shares

— — — — ( 258 ) — — — ( 258 )

Repurchase and retirement of common stock

— — ( 2,411,432 ) — ( 8,844 ) ( 10,306 ) — — ( 19,150 )

Comprehensive loss:

( 5 ) ( 5 ) — — — ( 14,624 ) — ( 263 ) ( 14,887 )

Unrealized loss on available-for-sale securities

— — — — — — ( 141 ) — ( 141 )

Foreign currency translation adjustments

Balance, March 31, 2024

( 8 ) ( 8 ) — — — — ( 325 ) ( 66 ) ( 391 )

Balance, June 30, 2024

$ — $ — 186,657,306 $ 19 $ 688,487 $ ( 485,327 ) $ 2,732 $ 1,497 $ 207,408

See accompanying notes.

2 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating activities

Net income (loss)

$ 6,459 $ ( 14,892 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

3 unchanged sentences

Stock-based compensation

20,763 19,996

Deferred income taxes

( 155 ) ( 157 )

Change in value of earn-out and warrant liabilities

( 408 ) 7,180

Changes in operating assets and liabilities:

2 unchanged sentences

Deferred contract costs and other assets

( 5,438 ) 3,493

Accounts payable, accrued expenses, other current liabilities, operating lease liabilities and other liabilities

( 23,872 ) ( 9,457 )

Deferred revenue

Net cash provided by operating activities

20,765 23,914

Investing activities

1 unchanged sentence

Purchases of investments

Repurchase of noncontrolling interest

Capitalization of internal-use software

( 812 ) ( 729 )

Purchase of property and equipment

( 2,479 ) ( 896 )

Issuance of notes receivables

1 unchanged sentence

Net cash used in investing activities

( 30,332 ) ( 2,587 )

Financing activities

Purchase of common stock

( 18,954 ) ( 19,151 )

Proceeds from warrant exercises

2 unchanged sentences

Net cash provided by (used in) financing activities

146,794 ( 15,820 )

Effect of exchange rates on cash

Net increase (decrease) in cash and cash equivalents

1,854 ( 1,671 )

Net increase in cash and cash equivalents

139,081 3,836

Cash and cash equivalents at beginning of period

290,735 223,162

Cash and cash equivalents at end of period

$ 429,816 $ 226,998

Supplemental disclosures of cash flow information

Income taxes paid

$ 2,411 $ 3,270

Unpaid purchase consideration transferred in connection with the business combination

Unpaid redemption of noncontrolling interest

Receivable proceeds from warrant exercises

See accompanying notes.

15 unchanged sentences

In the opinion of management, these financial statements contain all material adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for any other interim period or for the year ended December 31, 2025.

Operating results for the six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for any other interim period or for the year ended December 31, 2025.

These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes included in our most recent Annual Report on Form 10 -K for the year ended December 31, 2024 , which was filed with the SEC on February 27, 2025 (“ Annual Report ”).

6 unchanged sentences

Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties.

Comparative Data

Certain amounts from prior periods have been reclassed to conform to the current period presentation, including:

The reclassification of reclassification adjustment for net gains on available-for-sale securities included in net loss to be included in unrealized loss on available-for-sale securities on the condensed consolidated statements of comprehensive income (loss) for the six months ended June 30, 2024.

Cash and Cash Equivalents

5 unchanged sentences

The Company maintains cash balances used in operations at entities based in countries that impose regulations that limit the ability to transfer cash out of the country.

As of March 31, 2025 and December 31, 2024 , the Company’s cash balances at these entities were $ 12.3 million and $ 15.5 million, respectively.

As of June 30, 2025 and December 31, 2024 , the Company’s cash balances at these entities were $ 12.0 million and $ 15.5 million, respectively.

For purposes of the condensed consolidated statements of cash flows, cash includes all amounts in the condensed consolidated balance sheets captioned cash and cash equivalents.

8 unchanged sentences

No events or circumstances have changed since any of our acquisitions that would indicate that the fair value of our reporting unit is below its carrying amount.

No impairment was deemed necessary as of March 31, 2025 or December 31, 2024 .

No impairment was deemed necessary as of June 30, 2025 or December 31, 2024 .

Deferred Contract Costs

1 unchanged sentence

Changes in the anticipated period of asset benefit or the average renewal term are recognized on a prospective basis upon occurrence.

Amortization of deferred contract costs of $ 5.5 million for the three months ended March 31, 2025 , and $ 5.3 million for the three months ended March 31, 2024 , is included as a component of sales and marketing expenses in our condensed consolidated statements of income (loss).

Deferred contract costs recognized as a contract asset in the condensed consolidated balance sheets were $ 59.9 million and $ 59.8 million as of March 31, 2025 and December 31, 2024 , respectively.

Amortization of deferred contract costs of $ 5.5 million and $ 11.0 million for the three and six months ended June 30, 2025 , respectively, and $ 4.8 million and $ 10.1 million for the three and six months ended June 30, 2024 , respectively, is included as a component of sales and marketing expenses in our condensed consolidated statements of income (loss).

Deferred contract costs recognized as a contract asset in the condensed consolidated balance sheets were $ 63.3 million and $ 59.8 million as of June 30, 2025 and December 31, 2024 , respectively.

Revenue Recognition

2 unchanged sentences

Services include installation services, training and other consulting services.

Term license revenue recognized at a point in time was $ 7.2 million for the three months ended March 31, 2025 , and $ 5.6 million for the three months ended March 31, 2024 .

Term license revenue recognized at a point in time was $ 5.0 million and $ 12.2 million for the three and six months ended June 30, 2025 , respectively, and $ 6.6 million and $ 12.2 million for the three and six months ended June 30, 2024 , respectively.

Accounts receivable, net is inclusive of accounts receivable, and current unbilled receivables, net of allowance for credit losses.

2 unchanged sentences

We periodically evaluate the collectability of our accounts receivable and provide an allowance for credit losses as necessary, based on the age of the receivable, expected payment ability, and collection experience.

As of March 31, 2025 and December 31, 2024 , the allowance for credit losses was not material.

As of June 30, 2025 and December 31, 2024 , the allowance for credit losses was not material.

We record deferred revenue in the condensed consolidated balance sheets when cash is collected or invoiced before revenue is earned.

Deferred revenue as of March 31, 2025 and December 31, 2024 was $ 160.6 million and $ 153.3 million, respectively.

Revenue recognized that was included in the deferred revenue balance at the beginning of the period was $ 57.4 million for the three months ended March 31, 2025 .

Deferred revenue as of June 30, 2025 and December 31, 2024 was $ 170.2 million and $ 153.3 million, respectively.

Revenue recognized that was included in the deferred revenue balance at the beginning of the period was $ 101.8 million for the six months ended June 30, 2025 .

AvePoint, Inc.

4 unchanged sentences

$ 95,683 $ 153,308 $ 59,838

Balance, March 31, 2025

Balance, June 30, 2025

103,987 170,238 63,300

( 1 ) Includes long-term unbilled receivables.

There were no significant changes to the Company’s contract assets or liabilities during the three months ended March 31, 2025 and the year ended December 31, 2024 outside of its sales activities.

As of March 31, 2025 , transaction price allocated to remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was $ 405.1 million, of which $ 337.7 million is related to SaaS and term license and support revenue.

There were no significant changes to the Company’s contract assets or liabilities during the six months ended June 30, 2025 and the year ended December 31, 2024 outside of its sales activities.

As of June 30, 2025 , transaction price allocated to remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods, was $ 460.3 million, of which $ 384.9 million is related to SaaS and term license and support revenue.

We expect to recognize approximately 60 % of the total transaction price allocated to remaining performance obligations over the next twelve months and the remainder thereafter.

5 unchanged sentences

The Black-Scholes model requires highly subjective assumptions in order to derive the inputs necessary to calculate the fair value of stock options.

To estimate the expected term of stock options, the Company considers contractual terms of the options, including the vesting and expiration periods, as well as historical option exercise data and current market conditions to determine an estimated expected term.

The Company’s historical experience is too limited to be able to reasonably estimate an expected term.

The Company calculates the expected term using the “simplified” method, which is the simple average of the vesting period and the contractual term.

The simplified method is applied as the Company does not have sufficient historical data to provide a reasonable basis for an estimate of the expected term.

Expected volatility is based on the historical volatility of a group of peer entities.

28 unchanged sentences

The estimated fair value of the transaction consideration is approximately $ 20.4 million, consisting of $ 14.9 million in cash paid at closing and a $ 5.5 million unconditional purchase obligation with variability in the timing and amount of settlement.

The acquisition-related costs incurred by the Company totaled $ 1.3 million, of which $ 0.5 million was incurred during the three months ended March 31, 2025.

The acquisition-related costs incurred by the Company totaled $ 1.3 million, of which $ 0.0 million and $ 0.5 million were incurred during the three and six months ended June 30, 2025 , respectively.

These costs are recognized as an expense in the general and administrative item in the condensed consolidated statements of income (loss).

1 unchanged sentence

The Company established a deferred tax liability with an offset to goodwill in connection with the accounting for the opening balance sheet of the Ydentic acquisition as a result of book-to-tax differences primarily related to the technology and software intangibles and customer related assets.

The valuation of assets acquired and liabilities assumed has not yet been finalized as of March 31, 2025 .

The valuation of assets acquired and liabilities assumed has not yet been finalized as of June 30, 2025 .

The purchase price allocation is preliminary and subject to change, including the valuation of intangible assets, income taxes, and goodwill, among other items.

28 unchanged sentences

Some of the significant assumptions inherent in the development of such asset valuations include revenues, contributory asset charges, discount rate and useful life.

The fair value of intangible assets as of March 31, 2025 is based on publicly available benchmarking information as well as preliminary assumptions which are subject to change as we complete our valuation procedures.

The fair value of intangible assets is based on publicly available benchmarking information as well as preliminary assumptions which are subject to change as we complete our valuation procedures.

Mandatorily Redeemable Noncontrolling Interest

5 unchanged sentences

Subsequent to the initial measurement, mandatorily redeemable noncontrolling interests are measured at the amount of cash that would be paid under the conditions specified in the applicable agreement, assuming settlement occurred as of the reporting date.

Any change in the estimated redemption amount compared to the prior reporting date is recognized as interest cost in the condensed consolidated statements of operations.

As of March 31, 2025, the liability was $ 6.6 million and is included in accrued expenses and other current liabilities within the condensed consolidated balance sheets.

During the three months ended March 31, 2025, the Company recorded interest expense of $ 0.8 million to adjust the redemption value of the mandatorily redeemable noncontrolling interest.

The expenses are included in other income, net within the condensed statements of income (loss).

Any change in the estimated redemption amount compared to the prior reporting date is recognized as interest cost in the condensed consolidated statements of income (loss).

As of June 30, 2025 , the liability was $ 7.1 million and is included in accrued expenses and other current liabilities within the condensed consolidated balance sheets.

During the three and six months ended June 30, 2025 , the Company recorded interest expense of $ 0.0 million and $ 0.8 million, respectively, to adjust the redemption value of the mandatorily redeemable noncontrolling interest.

The expenses are included in other (expense) income, net within the condensed consolidated statements of income (loss).

AvePoint, Inc.

4 unchanged sentences

Effect of foreign currency translation

Balance, March 31, 2025

Balance, June 30, 2025

Intangible Assets, Net

Intangible assets consist of acquired intangible assets and self-developed software.

A summary of the balances of the Company’s intangible assets as of March 31, 2025 and December 31, 2024 is presented below:

A summary of the balances of the Company’s intangible assets as of June 30, 2025 and December 31, 2024 is presented below:

Gross Carrying Amount

4 unchanged sentences

Net Carrying Amount

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in thousands)

5 unchanged sentences

$ 18,616 $ ( 7,047 ) $ 11,569 $ 14,053 $ ( 5,164 ) $ 8,889

Amortization expense for intangible assets was $ 0.8 million for the three months ended March 31, 2025 , and $ 0.6 million for the three months ended March 31, 2024 .

As of March 31, 2025 , estimated future amortization expense for intangible assets, net is as follows:

Amortization expense for intangible assets was $ 0.9 million and $ 1.6 for the three and six months ended June 30, 2025 , and $ 0.6 million and $ 1.2 million for the three and six months ended June 30, 2024 , respectively.

As of June 30, 2025 , estimated future amortization expense for intangible assets, net is as follows:

Year Ending December 31:

(in thousands)

2025 (nine months)

2025 (six months)

Total intangible assets subject to amortization

19 unchanged sentences

The Company pledged, assigned and granted HSBC a security interest in all shares of its subsidiaries, future proceeds and assets (except for excluded assets, including material intellectual property) as security for the performance of the Loan Agreement obligations.

As of March 31, 2025, the Company is compliant with all covenants under the line and had no borrowings outstanding under the line of credit.

The Company had an effective tax rate of 26.8 % for the three months ended March 31, 2025 , and 1062.6 % for the three months ended March 31, 2024 .

The change in effective tax rates for the three -month period ended March 31, 2025 as compared to the three -month period ended March 31, 2024 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, the impact of foreign inclusions and stock-based compensation.

As of June 30, 2025 , the Company is compliant with all covenants under the line and had no borrowings outstanding under the line of credit.

The Company had an effective tax rate of 57.8 % and 44.9 % for the three and six months ended June 30, 2025 , respectively, and ( 42.1 )% and ( 67.2 )% for the three and six months ended June 30, 2024 , respectively.

The change in effective tax rates for the three -month period ended June 30, 2025 as compared to the three -month period ended June 30, 2024 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, the impact of foreign inclusions and stock-based compensation.

The change in effective tax rates for the six -month period ended June 30, 2025 as compared to the six -month period ended June 30, 2024 was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, the impact of foreign inclusions and stock-based compensation.

The Company continues to evaluate the realizability of its deferred tax assets on a quarterly basis and will adjust such amounts in light of changing facts and circumstances.

6 unchanged sentences

The components of the Company’s operating lease expenses are reflected in the condensed consolidated statements of income (loss) as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2 unchanged sentences

Short-term lease expenses (1)

409 279 836 546

Variable lease cost not included in the lease liability (2)

63 180 194 315

Total lease cost

5 unchanged sentences

We elected to combine fixed payments for non-lease components, for all classes of underlying assets, with our lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities.

During the three months ended March 31, 2025 and 2024 , right-of-use assets obtained in exchange for new operating lease liabilities amounted to $ 3.6 million and $ 0.7 million, respectively.

During the six months ended June 30, 2025 and 2024 , right-of-use assets obtained in exchange for new operating lease liabilities amounted to $ 6.4 million and $ 2.9 million, respectively.

Other information related to operating leases is as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2 unchanged sentences

$ 2,162 $ 1,624 $ 4,624 $ 3,748

As of March 31, 2025 , our operating leases had a weighted average remaining lease term of 3.2 years and a weighted average discount rate of 5.5 %.

As of June 30, 2025 , our operating leases had a weighted average remaining lease term of 3.3 years and a weighted average discount rate of 5.6 %.

AvePoint, Inc.

3 unchanged sentences

The maturity schedule of the operating lease liabilities as of

March 31, 2025 is as follows:

June 30, 2025 is as follows:

Year Ending December 31:

(in thousands)

2025 (nine months)

2025 (six months)

Total future lease payments

2 unchanged sentences

( 1 ) Includes the current portion of operating lease liabilities of $ 7.2 million, which is reflected in accrued expenses and other current liabilities in the condensed consolidated balance sheets.

As of March 31, 2025, letters of credit have been issued in the amount of $ 1.0 million as security for operating leases.

As of June 30, 2025 , letters of credit have been issued in the amount of $ 1.1 million as security for operating leases.

The letters of credit are secured by certificates of deposit and a sublimit of our line of credit (refer to “ Note 7 - Line of Credit ” for further details).

9 unchanged sentences

Given the Company’s history of procuring similar products, it is expected that cash payments to the supplier will occur in 2023 through 2025 with any remaining amounts coming due in 2025.

During the three months ended March 31, 2025 and 2024, the Company paid $ 8.2 million and $ 6.7 million, respectively, related to the December 2022 agreement.

The Company paid $ 9.1 million and $ 17.3 million, respectively, during the three and six months ended June 30, 2025 , and $ 7.0 million and $ 13.7 million, respectively, during the three and six months ended June 30, 2024 , related to the December 2022 agreement.

In December 2024, the Company signed an unconditional purchase commitment in the amount of $ 15.0 million to purchase additional IT solutions over a five -year term.

3 unchanged sentences

In February 2024, the Company made a commitment to contribute $ 50.0 million to a growth equity fund.

As of March 31, 2025, this commitment remains outstanding.

As of June 30, 2025 , this commitment remains outstanding.

Refer to “ Note 13 - Growth Equity Fund ” for more information.

1 unchanged sentence

In the normal course of its business, the Company may be involved in various claims, negotiations and legal actions.

Except for such claims that arise in the normal course of business, as of March 31, 2025 , the Company was not a party to any other litigation.

Except for such claims that arise in the normal course of business, as of June 30, 2025 , the Company was not a party to any other litigation.

Indemnification

The Company has entered into indemnification agreements with its executive officers and directors.

The Company has entered into indemnification agreements with its directors and executive officers.

These agreements, among other things, require AvePoint to indemnify its directors and executive officers to the fullest extent permitted by Delaware law, specifically the Delaware General Corporation Law (as the same exists or may hereafter be amended) for certain expenses, including attorneys’ fees, judgments, fines, and settlement amounts incurred by a director or officer in any action or proceeding arising out of their services as one of the Company’s directors or officers or any other company or enterprise to which the person provides services at the Company’s request.

As part of the business combination with Apex Technology Acquisition Corporation, Inc.

(“ Apex ”), we assumed certain indemnification obligations for Apex Technology Sponsor LLC and Jeff Epstein, Brad Koenig, David Chao, Peter Bell, Donna Wells, and Alex Vieux (the “ Indemnitees ” or “ Defendants ”).

(“ Apex ”), we assumed certain indemnification obligations for Apex Technology Sponsor LLC (the “ Sponsor ”) and Jeff Epstein, Brad Koenig, David Chao, Peter Bell, Donna Wells, and Alex Vieux (the “ Indemnitees ” or “ Defendants ”).

On February 2, 2024, Drulias and Farzad (as purported Apex stockholders, the “ Plaintiffs ”) filed a class action complaint against the Indemnities in Delaware Court of Chancery, captioned Dean William Drulias, et.al.

1 unchanged sentence

2024 - 0094 -LWW.

Plaintiffs asserted breach of fiduciary duty and unjust enrichment claims against the Defendants.

The complaint alleged that Defendants made false and misleading disclosures in the June 2, 2021 proxy statement of Apex impacting its stockholders’ vote to approve a merger between Apex and us and also affecting stockholders’ redemption rights prior to the merger.

Plaintiffs sought unspecified damages, rescission or rescissory damages, and disgorgement of unjust enrichment.

The Plaintiffs asserted breach of fiduciary duty and unjust enrichment claims against the Defendants.

The complaint alleged that the Defendants made false and misleading disclosures in the June 2, 2021 proxy statement of Apex impacting its stockholders’ vote to approve a merger between Apex and us and also affecting stockholders’ redemption rights prior to the merger.

The Plaintiffs sought unspecified damages, rescission or rescissory damages, and disgorgement of unjust enrichment.

We were not a named defendant in the complaint but had indemnification obligations to the Defendants under indemnification agreements executed during the merger.

Also, in accordance with the business combination agreement, the Defendants obtained insurance policies to cover post-closing liability, with Apex securing a policy with a limit of $ 10 million and the sponsors obtaining a policy with a $ 3 million limit.

Also, in accordance with the business combination agreement, Apex and the Sponsor obtained insurance policies to cover post-closing liability, with Apex securing a policy with a limit of $ 10 million and the Sponsor securing a policy with a limit of $ 3 million.

The parties participated in a mediation in October and agreed to settlement terms.

Pursuant to a signed letter of intent and a forthcoming settlement agreement, releasing us and the Defendants and settling the class action, we will contribute $ 1.4 million toward the full settlement amount of $ 14.4 million.

The remaining $ 13 million will be paid pursuant to the two aforementioned insurance policies covering the Defendants and sponsor.

As of March 31, 2025 and December 31, 2024, an estimated accrual of $ 1.4 million was included in the accrued expenses and other current liabilities within the condensed consolidated balance sheets.

Pursuant to a fully executed settlement agreement, releasing us and the Defendants and settling the class action, we contributed $ 1.4 million in the second quarter toward the total settlement amount of $ 14.4 million.

The remaining $ 13 million was paid pursuant to the two aforementioned insurance policies covering the Defendants and the Sponsor.

As of June 30, 2025 and December 31, 2024, an estimated accrual of $ 0.0 million and $ 1.4 million, respectively, was included in the accrued expenses and other current liabilities within the condensed consolidated balance sheets.

In the normal course of business, customers in certain geographies or in highly regulated sectors occasionally require contingency agreements for the completion of service projects, the completion of which are secured by certificates of deposit and a sublimit of our line of credit (refer to “ Note 7 - Line of Credit ” for further details).

The certificates of deposit are included in short-term investments within the condensed consolidated balance sheets.

As of March 31, 2025 , letters of credit for customer-related contingency agreements have been issued in the amount of $ 4.8 million, as security for the agreements.

As of June 30, 2025 , letters of credit for customer-related contingency agreements have been issued in the amount of $ 5.7 million, as security for the agreements.

These agreements have not had a material effect on our results of operations, financial position or cash flow.

8 unchanged sentences

Under this approach, the fair value of the private placement warrants on July 1, 2021, was determined to be $ 1.4 million.

The fair value was remeasured as of March 31, 2025 and December 31, 2024 , and was determined to be $ 1.4 million and $ 1.9 million, respectively, and included in other liabilities in the condensed consolidated balance sheets.

As a result, a $ 0.5 million gain was recognized during the three months ended March 31, 2025 , and a $ 0.1 million loss was recognized during the three months ended March 31, 2024 , and included as other income, net in the condensed consolidated statements of income (loss).

As of March 31, 2025, 328,750 private placement warrants remained outstanding.

On April 10, 2025 ( the “ Private Warrants Transfer Date ”), the private placement warrants were transferred to an unrelated party and converted into public warrants.

The fair value was remeasured as of the Private Warrants Transfer Date and December 31, 2024 , and was determined to be $ 1.5 million and $ 1.9 million, respectively, and included in other liabilities in the condensed consolidated balance sheets.

During the three and six months ended June 30, 2025 , a $ 0.1 million increase and a $ 0.4 million decrease in liability was recognized respectively, and during the three and six months ended June 30, 2024 , a $ 0.3 million and $ 0.2 million increase in liability was recognized, respectively, and included as other (expense) income, net in the condensed consolidated statements of income (loss).

Subsequently, the public warrants were reclassified from other liabilities to additional paid-in capital in the consolidated balance sheets by $ 1.5 million.

As of June 30, 2025 , there were no remaining private placement warrants.

Stockholders ’ Equity

3 unchanged sentences

Pursuant to the Company’s restated Articles of Incorporation, the Company was authorized to issue up to 1,000,000,000 shares of common stock at $ 0.0001 par value.

There were 203,030,980 and 194,070,512 shares issued and outstanding as of March 31, 2025 and December 31, 2024 , respectively.

There were 211,138,994 and 194,070,512 shares issued and outstanding as of June 30, 2025 and December 31, 2024 , respectively.

Each share of common stock is entitled to one vote.

7 unchanged sentences

The Company is not obligated to make purchases of, nor is it obligated to acquire any particular amount of, common stock under the Share Repurchase Program.

During the three months ended March 31, 2025 , the Company repurchased and retired 800,995 shares at an average price of $ 14.86 per share.

During the six months ended June 30, 2025 , the Company repurchased and retired 1,215,323 shares at an average price of $ 15.60 per share.

The shares were returned to the status of authorized but unissued shares.

As a result, common stock amount, additional paid-in capital, and accumulated deficit in the condensed consolidated balance sheet during the three months ended March 31, 2025, were reduced by $ 0.0 million, $ 3.4 million, and $ 8.5 million, respectively.

During the three months ended March 31, 2024 , the Company repurchased and retired 1,758,850 shares at an average price of $ 7.81 per share.

As a result, common stock amount, additional paid-in capital, and accumulated deficit in the condensed consolidated balance sheet during the six months ended June 30, 2025 , were reduced by $ 0.0 million, $ 5.3 million, and $ 13.6 million, respectively.

During the six months ended June 30, 2024 , the Company repurchased and retired 2,411,432 shares at an average price of $ 7.94 per share.

AvePoint, Inc.

3 unchanged sentences

Each warrant entitles the registered holder to purchase one share of AvePoint’s common stock and the warrants are exercisable from the date of issuance through July 1, 2026.

During the three months ended March 31, 2025, 7,595,099 warrants were exercised, with total cash received of $ 87.3 million.

As of March 31, 2025 , 6,890,701 warrants remained outstanding.

The Company may call the public warrants for redemption as follows:

( 1 ) in whole and not in part;

( 2 ) at a price of $ 0.01 per warrant;

( 3 ) upon a minimum of 30 days prior written notice of redemption;

and ( 4 ) only if the last reported closing price of the common stock equals or exceeds $ 18.00 per share for any 20 trading days within a 30 trading day period ending on the 3rd trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

On June 6, 2025, the last sales price of the Company’s Common Stock was at least $ 18.00 per share on each of 20 trading days within a 30 -trading day period.

On June 11, 2025, the Company directed its warrant agent to issue a notice of redemption to each registered holder of its outstanding public warrants stating that, pursuant to the terms of the Warrant Agreement dated September 16, 2019, it would redeem all public warrants that remained outstanding as of July 11, 2025 ( the “ Redemption Date ”), at a redemption price of $ 0.01 per warrant.

During the six months ended June 30, 2025 , 13,866,954 warrants were exercised, with total cash proceeds of $ 159.5 million.

As of June 30, 2025 , 947,596 warrants remained outstanding.

Subsequent to June 30, 2025, a total of 758,100 warrants were exercised, with total cash proceeds of $ 8.7 million.

A total of 189,496 public warrants remained unexercised on the Redemption Date, and AvePoint redeemed those warrants.

Following the Redemption Date, AvePoint had no warrants outstanding.

Noncontrolling Interest

On May 30, 2025 , the Company repurchased all of the remaining outstanding interest of MaivenPoint Ptd.

(“ MaivenPoint ”) from the remaining minority interest holders for an aggregate cash purchase price of $ 12.1 million.

Following the repurchase of the interest, the Company is the sole interest holder of MaivenPoint.

As of December 31, 2024, AvePoint owned 76.1 % interest in MaivenPoint.

Growth Equity Fund

10 unchanged sentences

Any future repayment obligations will be triggered upon the receipt by LCP of profit allocations related to the Fund.

As of March 31, 2025, no portion of the Company’s $ 50.0 million commitment has been called or was callable, and the operations of the Fund and the Venture have not materially impacted the Company’s financial position, financial performance, or cash flows.

As of March 31, 2025 and December 31, 2024 , management fees and establishment costs of $ 2.7 million and $ 2.4 million, respectively, were included in accrued expenses and other liabilities in the condensed consolidated balance sheets.

During the three months ended March 31, 2025 and 2024, management fees and establishment costs of $ 0.3 million and $ 0.6 million, respectively, were included in general and administrative in the condensed consolidated statements of income (loss).

As of June 30, 2025 , no portion of the Company’s $ 50.0 million commitment has been called or was callable, and the operations of the Fund and the Venture have not materially impacted the Company’s financial position, financial performance, or cash flows.

As of June 30, 2025 and December 31, 2024 , management fees and establishment costs of $ 2.9 million and $ 2.4 million, respectively, were included in accrued expenses and other liabilities in the condensed consolidated balance sheets.

Management fees and establishment costs of $ 0.2 million and $ 0.5 million for the three and six months ended June 30, 2025 , respectively, and $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2024 , respectively, were included in general and administrative in the condensed consolidated statements of income (loss).

AvePoint, Inc.

2 unchanged sentences

The Company maintains the 2021 Equity Incentive Plan (the “ 2021 Plan ”).

As of March 31, 2025 , 24,276,338 shares remained for future issuance under the 2021 Plan.

As of June 30, 2025 , 36,573,006 shares remained for future issuance under the 2021 Plan.

To date, the Company has issued only stock options and restricted stock units to employees, directors and consultants.

For the three months ended March 31, 2025 and 2024, total stock-based compensation expense was $ 9.6 million and $ 9.5 million, respectively.

Total stock-based compensation expense was $ 11.1 million and $ 20.8 million for the three and six months ended June 30, 2025 , respectively, and was $ 10.5 million and $ 20.0 million for three and six months ended June 30, 2024 , respectively.

Stock Options

1 unchanged sentence

Stock options vest over a four -year service period and expire on the tenth anniversary of the date of award.

On March 14, 2025, the Company granted 269,685 options under the 2021 Plan.

On March 14, 2025, the Company granted 269,685 options under the 2021 Plan, at a total grant-date fair value of $ 2.2 million.

The Company estimated the grant date fair value of these stock options using the Black-Scholes option-pricing model with the following weighted-average assumptions:

3 unchanged sentences

Dividend yield —

To estimate the expected life of stock options, the Company considered the vesting term, contractual expiration period, and market conditions.

Expected volatility is based on historical volatility of a group of peer entities.

Dividend yields are based upon historical dividend yields.

Risk-free interest rates are based on the implied yields currently available on U.S.

Treasury zero coupon issues with a remaining term equal to the expected life.

Based on these inputs, the grant-date fair value was determined to be $ 2.2 million.

As of March 31, 2025 , there was $ 7.4 million in unrecognized compensation costs related to all unvested options.

As of March 31, 2025 , the Company had 23,131,333 options outstanding and 21,237,602 options exercisable with intrinsic values of $ 230.3 million and $ 218.4 million, respectively.

During the three months ended March 31, 2025 , 418,369 options were exercised, with a total intrinsic value of $ 5.9 million.

As of June 30, 2025 , there was $ 5.4 million in unrecognized compensation costs related to all unvested options.

As of June 30, 2025 , the Company had 21,962,449 options outstanding and 20,593,175 options exercisable with intrinsic values of $ 328.2 million and $ 313.0 million, respectively.

During the six months ended June 30, 2025 , 1,495,597 options were exercised, with a total intrinsic value of $ 18.8 million.

AvePoint, Inc.

1 unchanged sentence

Restricted Stock Units

Under the terms of the 2021 Plan, we have issued restricted stock unit awards with a continuous employment condition only (“ Time-Based RSUs ”), and restricted stock unit awards with a continuous employment condition that are also contingent on the Company meeting certain performance goals (“ PSUs ”, and together “ RSUs ”).

Both types of RSU awards vest over a four -year period from the grant date.

2,041,643 Time-Based RSUs and 301,842 PSUs were granted under the 2021 Plan during the three months ended March 31, 2025 , with a weighted-average grant date fair-value of $ 14.66 per award.

2,114,747 Time-Based RSUs and 301,842 PSUs were granted under the 2021 Plan during the six months ended June 30, 2025 , with a weighted-average grant date fair-value of $ 14.75 per award.

The compensation costs for RSUs are recognized using the straight-line attribution method over the requisite service period and are accounted for forfeitures as they occur.

RSUs are measured at the fair market value of the underlying stock at the grant date.

RSUs that vested during the three months ended March 31, 2025 had an aggregate fair value at vesting of $ 26.2 million.

As of March 31, 2025 , there was $ 79.5 million in unrecognized compensation costs specific to the unvested RSUs, to be recognized over a weighted-average period of 2.9 years.

As of March 31, 2025 , the Company had 9,423,644 unvested Time-Based RSUs and 804,518 unvested PSUs with a weighted-average grant date fair-value of $ 8.19 per award.

RSUs that vested during the six months ended June 30, 2025 had an aggregate fair value at vesting of $ 47.8 million.

As of June 30, 2025 , there was $ 69.5 million in unrecognized compensation costs specific to the unvested RSUs, to be recognized over a weighted-average period of 2.8 years.

As of June 30, 2025 , the Company had 8,058,597 unvested Time-Based RSUs and 804,518 unvested PSUs with a weighted-average grant date fair-value of $ 8.51 per award.

Fair Value Measurements

8 unchanged sentences

Notes to Condensed Consolidated Financial Statements

March 31, 2025

Financial assets and liabilities measured at fair value on a recurring basis are classified in the categories described in the table below:

June 30, 2025

(in thousands)

16 unchanged sentences

$ — $ — $ 6,903 $ 6,903

Other non-current liabilities:

Warrant liabilities (4)

$ — $ — $ 6,903 $ 6,903

$ — $ 1,387 $ 6,306 $ 7,693

December 31, 2024

22 unchanged sentences

The LCP Notes Receivable bear interest at an annual rate equal to 8 %.

As of March 31, 2025 and December 31, 2024 , the LCP Notes Receivable in the amounts of $ 3.9 million and $ 3.8 million, respectively, were included in other assets within the condensed consolidated balance sheets.

As of June 30, 2025 and December 31, 2024 , the LCP Notes Receivable in the amounts of $ 4.0 million and $ 3.8 million, respectively, were included in other assets within the condensed consolidated balance sheets.

Fair values are based on discounted future cash flows using current interest rates offered for similar notes to third parties with similar credit ratings for the same remaining maturities.

The change of 1 % of the current interest rate will change the fair value by $ 0.3 million.

( 3 ) The fair value of mandatorily redeemable noncontrolling interest is based on discounted redemption value using risk-free rates offered for similar financing with the same remaining maturities.

2 unchanged sentences

Notes to Condensed Consolidated Financial Statements

The following tables summarize the Company’s available-for-sale securities measured at fair value as of March 31, 2025 and December 31, 2024.

March 31, 2025

The following tables summarize the Company’s available-for-sale securities measured at fair value as of June 30, 2025 and December 31, 2024 .

June 30, 2025

(in thousands)

11 unchanged sentences

$ 181,217 $ 181,210 $ ( 7 )

The contractual maturity of the available-for-sale securities held as of March 31, 2025 and December 31, 2024 was within one year.

The contractual maturity of the available-for-sale securities held as of June 30, 2025 and December 31, 2024 was within one year.

Segment Information

4 unchanged sentences

The CODM does not review assets in evaluating the results of the segment.

The accounting policies of the segment are the same as those described in “ Note 2 - Summary of Significant Accounting Policies ”.

The CODM assesses performance for the consolidated entity and decides how to allocate resources based on net income (loss) reported on the consolidated statements of income (loss).

2 unchanged sentences

The following table sets forth the information about the Company’s reported segment revenue, segment profit or loss, and significant segment expenses:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

3 unchanged sentences

Stock-based compensation

11,143 10,538 20,763 19,996

Cloud and server hosting services expenses

10,712 7,429 20,194 15,161

Marketing expenses

3,687 3,236 7,813 5,975

Other segment items (1)

8 unchanged sentences

The following table sets forth revenue by geographic area:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

6 unchanged sentences

The following table sets forth revenue generated by countries which represent more than 10% of total consolidated revenue:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2 unchanged sentences

13,203 9,394 25,495 19,288

13,793 10,230 25,305 20,709

AvePoint, Inc.

Notes to Condensed Consolidated Financial Statements

Other Income, Net

Other income, net is disaggregated as follows:

Three Months Ended March 31,

Other (Expense) Income, Net

Other (expense) income, net is disaggregated as follows:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Gain on earn-out and warrant liabilities

Change in value of earn-out and warrant liabilities

$ ( 65 ) $ ( 8,670 ) $ 408 $ ( 7,180 )

Interest (expense) income, net

Profits on securities (1)

Interest income, net

1,371 37 1,072 71

Gain on securities (1)

1,975 2,336 3,906 4,753

Foreign currency exchange loss, net

( 3,416 ) ( 644 ) ( 3,746 ) ( 1,212 )

Other income, net

( 105 ) ( 29 ) ( 294 ) 2

( 1 ) Profits on securities consist of interest income from amortization of the discount arising at acquisition of U.S.

Other (expense) income, net

$ ( 240 ) $ ( 6,970 ) $ 1,346 $ ( 3,566 )

( 1 ) Gain on securities consist of interest income from amortization of the discount arising at acquisition of U.S.

treasury bills.

2 unchanged sentences

In computing diluted net income (loss) per share, the Company adjusts the denominator, subject to anti-dilution requirements, to include the dilution from potential shares of common stock resulting from outstanding share-based payment awards and warrants.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts)

3 unchanged sentences

Net (income) loss attributable to noncontrolling interest

( 195 ) 129 ( 321 ) 367

Total net income (loss) available to common stockholders

4 unchanged sentences

Stock options

16,553 — 16,679 —

5,618 — 5,957 —

1,940 — 2,799 —

Weighted average diluted shares

6 unchanged sentences

Notes to Condensed Consolidated Financial Statements

The below table includes the total potentially dilutive securities for the three months ending March 31, 2025 and 2024, which have been excluded from the computation of diluted net income (loss) per share as their effect is anti-dilutive:

Three Months Ended March 31,

The below table includes the total potentially dilutive securities for the three and six months ended June 30, 2025 and 2024 , which have been excluded from the computation of diluted net income (loss) per share as their effect is anti-dilutive:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Stock options

82 25,313 53 25,313

2 11,421 1 11,421

— 17,905 — 17,905

Earn-out shares

— 3,000 — 3,000

84 57,639 54 57,639

Subsequent Events

The following material subsequent event occurred since the date of the most recent balance sheet period reported.

At the end of March 2025, the Company offered to purchase all of the remaining outstanding interest of MaivenPoint Ptd.

(“ MaivenPoint ”) from the remaining minority interest holders for an aggregate total of approximately $11.6 million in cash.

As of the end of April, all minority interest holders accepted the Company’s offer subject to acceptable terms and conditions to be drafted in a shareholder purchase agreement in May 2025.

Following the acquisition of the interest, the Company will be the sole interest holder in MaivenPoint.

In addition to the matter disclosed in “ Note 12 — Stockholders ’ equity ”, the following subsequent event occurred since the date of the most recent balance sheet period reported.

On July 4, 2025, the One Big Beautiful Bill Act (“ OBBBA ”) was signed into law.

The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

We are currently assessing its impact on our consolidated financial statements and will recognize the income tax effects in the consolidated financial statements beginning in the period in which the OBBBA was signed into law.

MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

1 unchanged sentence

The MD&A should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (our “ Annual Report ”) and our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report.

First Quarter 2025 Business Highlights

Total annual recurring revenue (“ ARR ”) increased 26% year-over-year to $345.5 million as of March 31, 2025, 28% adjusted for FX;

Total revenue increased 25% year-over-year to $93.1 million for the three months ended March 31, 2025, 27% on a constant currency basis;

SaaS revenue increased 34% year-over-year to $68.9 million for the three months ended March 31, 2025, 37% on a constant currency basis;

Completed the acquisition of Ydentic to provide MSPs with an AI-driven platform to manage, optimize, and secure clients’ IT environments;

Launched the next generation of AvePoint Elements to automate insights, secure data, and accelerate profitability and efficiency for MSPs building security-centric practices;

Released new data security solutions for Google, expanding the Company’s multi-cloud protection to empower organizations with intelligent risk identification, proactive threat monitoring, and incident response at scale.

Second Quarter 2025 Business Highlights

Total annual recurring revenue (“ ARR ”) increased 27% year-over-year to $367.6 million as of June 30, 2025, 27% adjusted for FX;

Total revenue increased 31% year-over-year to $102.0 million for the three months ended June 30, 2025, 27% on a constant currency basis;

SaaS revenue increased 44% year-over-year to $77.3 million for the three months ended June 30, 2025, 40% on a constant currency basis;

Expanded the AvePoint Confidence Platform with new Risk Posture, Optimization & ROI, and Resilience command centers, along with advanced Agentic AI security features, to deliver unified data governance, actionable insights, and scalable Copilot agent protection across distributed AI environments;

Introduced advanced user lifecycle and device management, marketplace integration, and risk user insights to the AvePoint Elements Platform, empowering Managed Service Providers to streamline operations, enhance security, and drive profitability at scale;

Named to Inc.’s Best Workplaces list for the second consecutive year, which honors organizations creating exceptional workplaces and company cultures and reflects the Company’s ongoing investment in its people.

AvePoint empowers organizations of all sizes, industries, and regions with its cloud-native data management software platform, enabling them to prepare, secure, and optimize their critical data.

25 unchanged sentences

We calculate ARR as the annualized sum of contractually obligated Annual Contract Value (“ ACV ”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period.

As of March 31, 2025 and 2024, total ARR was $345.5 million and $274.5 million, respectively, representing growth of 26%.

As of June 30, 2025 and June 30, 2024, total ARR was $367.6 million and $290.1 million, respectively, representing growth of 27%.

Adjusted for FX, total ARR increased 27% year over year.

44 unchanged sentences

We believe delivering expanding product functionality is critical to enhancing the success of existing customers while new product development further reinforces our breadth of software solutions.

Other Income, net

Other Income, net consists primarily of fair value adjustments on earn-out and warrant liabilities, realized gain/loss for securities, and of foreign currency remeasurement gains/losses.

Other (Expense) Income, net

Other (Expense) Income, net consists primarily of fair value adjustments on earn-out and warrant liabilities, realized gain/loss for securities, and of foreign currency remeasurement gains/losses.

We are subject to income taxes in the U.S.

3 unchanged sentences

Accordingly, our effective tax rate could be affected by the relative proportion of foreign to domestic income, use of foreign tax credits, changes in the valuation of our deferred tax assets and liabilities, applicability of any valuation allowances, and changes in tax laws in jurisdictions in which we operate.

On July 4, 2025, the OBBBA was signed into law.

The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

Results of Operations

The below period-to-period comparisons of operating results are not necessarily indicative of results for future periods.

Comparison of Three Months Ended March 31, 2025 and March 31, 2024

The components of AvePoint’s revenue during the three months ended March 31, 2025 and 2024 were as follows:

Comparison of Three Months Ended June 30, 2025 and June 30, 2024

The components of AvePoint’s revenue during the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

2 unchanged sentences

Total revenue

Total revenue increased 24.9% to $93.1 million for the three months ended March 31, 2025, primarily due to an increase in SaaS revenue, which increased 34.4% to $68.9 million, and represented 74% of total revenue, up from 69% of total revenue in the prior year.

The increase in SaaS revenue, which was driven by strong customer demand for our SaaS solutions, was partially offset by an expected decrease in maintenance revenue.

The growth in total revenue was also due to an increase in term license and support revenue, which grew 11.8% to $11.2 million.

Total revenue increased 30.9% to $102.0 million for the three months ended June 30, 2025, primarily due to an increase in SaaS revenue, which increased 44.1% to $77.3 million, and represented 76% of total revenue, up from 69% of total revenue in the prior year.

The increase in SaaS revenue, which was driven by strong customer demand for our SaaS solutions, was partially offset by an expected decrease in term license and support and maintenance revenues.

The growth in total revenue was also due to an increase in services revenue, which grew 37.7% to $14.5 million.

Services revenue is expected to fluctuate as the services generally are not recurring in nature.

2 unchanged sentences

Existing customers have and will continue to transition to SaaS and term licenses, which will continue the decline in maintenance revenue.

Revenue by geographic region for the three months ended March 31, 2025 and 2024 was as follows:

Revenue by geographic region for the three months ended June 30, 2025 and 2024 was as follows:

Three Months Ended

1 unchanged sentence

North America

For the three months ended March 31, 2025, North America revenue increased 21.9% to $36.5 million, driven by a 30.9%, or $7.1 million, increase in SaaS revenue, partially offset by a combined $0.5 million net decrease in term license and support, services, and maintenance revenues.

EMEA revenues increased 29.3% to $29.5 million, driven by a 35.6%, or $6.6 million, increase in SaaS revenue.

APAC revenues increased 24.3% to $27.1 million, primarily driven by a 40.0%, or $4.0 million, increase in SaaS revenue, and a 61.6%, or $1.3 million, increase in term license and support revenue.

For the three months ended June 30, 2025, North America revenue increased 24.8% to $39.6 million, driven by a 37.6%, or $8.9 million, increase in SaaS revenue, partially offset by a combined $1.0 million net decrease in term license and support, services, and maintenance revenues.

EMEA revenues increased 37.8% to $31.8 million, driven by a 50.0%, or $9.7 million, increase in SaaS revenue, partially offset by a combined $0.9 million decrease in term license and support, services, and maintenance revenues.

APAC revenues increased 32.1% to $30.6 million, primarily driven by a 47.9%, or $5.1 million, increase in SaaS revenue, a 45.1%, or $3.8 million, increase in services revenue, and a combined $1.4 million decrease in term license and support, and maintenance revenues.

On a constant currency basis, EMEA revenues increased 30.5%, while EMEA SaaS revenues increased 42.0%.

7 unchanged sentences

Cost of Revenue, Gross Profit, and Gross Margin

Cost of revenue, gross profit, and gross margin during the three months ended March 31, 2025 and 2024 were as follows:

Cost of revenue, gross profit, and gross margin during the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

9 unchanged sentences

Non-GAAP gross margin

Cost of revenue increased 16.9% to $23.9 million for the three months ended March 31, 2025, primarily driven by a $1.7 million increase from higher aggregate hosting costs resulting from increased SaaS revenue and a $1.1 million increase in personnel costs.

Cost of revenue increased 39.8% to $26.5 million for the three months ended June 30, 2025, primarily driven by a $3.6 million increase in personnel costs and a $3.2 million increase from higher aggregate hosting costs resulting from increased SaaS revenue.

Operating Expenses

Sales and Marketing

Sales and marketing expenses during the three months ended March 31, 2025 and 2024 were as follows:

Sales and marketing expenses during the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

7 unchanged sentences

Non-GAAP percentage of revenue

Sales and marketing expenses increased 15.3% to $34.5 million for the three months ended March 31, 2025, primarily driven by a $2.9 million increase in personnel costs, and a $1.4 million increase in marketing spend.

Sales and marketing expenses increased 17.4% to $35.8 million for the three months ended June 30, 2025, primarily driven by a $4.2 million increase in personnel costs, and a $0.4 million increase in marketing spend.

General and Administrative

General and administrative expenses during the three months ended March 31, 2025 and 2024 were as follows:

General and administrative expenses during the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

6 unchanged sentences

Non-GAAP percentage of revenue

General and administrative expenses increased 10.7% to $18.7 million for the three months ended March 31, 2025.

The increase was primarily driven by $1.3 million increase in personnel costs, and an incremental $0.5 million in professional services fees related to the Ydentic acquisition.

General and administrative expenses increased 8.4% to $19.7 million for the three months ended June 30, 2025.

The increase was primarily driven by a $1.9 million increase in personnel costs.

Research and Development

Research and development expenses during the three months ended March 31, 2025 and 2024 were as follows:

Research and development expenses during the three months ended June 30, 2025 and 2024 were as follows:

Three Months Ended

8 unchanged sentences

million for the three months ended

March 31, 2025

, primarily driven by a $1.9 million increase in personnel costs associated with the expansion of our workforce.

June 30, 2025

, primarily driven by a $0.1 million increase in professional services, and a $0.1 million from increased facility costs.

Income Tax Provision

Income tax expense during the three months ended March 31, 2025 and 2024 was as follows:

Income tax expense during the three months ended June 30, 2025 and 2024 was as follows:

Three Months Ended

1 unchanged sentence

Income tax expense

AvePoint’s income tax expense for the three months ended March 31, 2025 was $1.3 million, as compared to a tax expense of $2.2 million for the three months ended March 31, 2024.

The effective tax rate was 26.8% for the three months ended March 31, 2025, compared to 1062.6% for the three months ended March 31, 2024.

AvePoint’s income tax expense for the three months ended June 30, 2025 was $4.0 million, as compared to a tax expense of $3.8 million for the three months ended June 30, 2024.

The effective tax rate was 57.8% for the three months ended June 30, 2025, compared to (42.1)% for the three months ended June 30, 2024.

The change in effective tax rates was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, certain jurisdictions with separate tax expense calculated, impact of foreign inclusions, stock-based compensation, and changes in valuation allowance.

1 unchanged sentence

If in the future, the Company determines it is more likely than not that deferred tax assets will not be realized, the Company may set up a valuation allowance, which may result in income tax expense in the Company’s condensed consolidated statements of income (loss) and condensed consolidated statements of comprehensive income (loss).

Comparison of Six Months Ended June 30, 2025 and June 30, 2024

The components of AvePoint’s revenue during the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended

(in thousands, except percentages)

Term license and support

Total revenue

Total revenue increased 27.9% to $195.1 million for the six months ended June 30, 2025, primarily due to an increase in SaaS revenue, which increased 39.4% to $146.3 million, and represented 75% of total revenue, up from 69% of total revenue in the prior year.

The increase in SaaS revenue, which was driven by strong customer demand for our SaaS solutions, was partially offset by an expected decrease in term license and support and maintenance revenues.

The growth in total revenue was also due to an increase in services revenue, which grew 21.1% to $25.4 million.

Services revenue is expected to fluctuate as the services generally are not recurring in nature.

Additionally, maintenance revenue is expected to continue declining as we have shifted away from the sale of perpetual licenses and towards SaaS and term licenses.

Without perpetual license sales, there will be limited opportunities to sell maintenance contracts to new customers.

Existing customers have and will continue to transition to SaaS and term licenses, which will continue the decline in maintenance revenue.

Revenue by geographic region for the six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended

(in thousands, except percentages)

North America

For the six months ended June 30, 2025, North America revenue increased 23.4% to $76.0 million, driven by a 34.3%, or $16.0 million, increase in SaaS revenue, partially offset by a combined $1.5 million net decrease in term license and support, services, and maintenance revenues.

EMEA revenues increased 33.6% to $61.3 million, driven by a 43.0%, or $16.3 million, increase in SaaS revenue, partially offset by a combined $0.9 million decrease in term license and support, services and maintenance revenues.

APAC revenues increased 28.3% to $57.8 million, primarily driven by a 44.1%, or $9.1 million, increase in SaaS revenue, a 22.9%, or $3.9 million, increase in services revenue, and a combined $0.2 million net decrease in term license and support, and maintenance revenues.

On a constant currency basis, EMEA revenues increased 31.6%, while EMEA SaaS revenues increased 40.6%.

On a constant currency basis, APAC revenues increased 27.2%, while APAC SaaS revenues increased 43.9%.

Non-GAAP Financial Measures

In addition to our financial results determined in accordance with GAAP, we disclose non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, non-GAAP operating income and non-GAAP operating margin.

We believe these non-GAAP measures aid investors by providing additional insight into our operational performance and into trends affecting our business.

Management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate financial performance.

Non-GAAP operating income and non-GAAP operating margin should not be considered as an alternative to operating income, operating margin or any other performance measures derived in accordance with GAAP as measures of performance.

Non-GAAP operating income and non-GAAP operating margin should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.

Cost of Revenue, Gross Profit, and Gross Margin

Cost of revenue, gross profit, and gross margin during the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended

(in thousands, except percentages)

Cost of revenue:

Term license and support

Total cost of revenue

GAAP cost of revenue

Stock-based compensation expense

Amortization of acquired intangible assets

Non-GAAP cost of revenue

Non-GAAP gross profit

Non-GAAP gross margin

Cost of revenue increased 27.9% to $50.4 million for the six months ended June 30, 2025, primarily driven by a $4.9 million increase from higher aggregate hosting costs resulting from increased SaaS revenue and a $4.7 million increase in personnel costs.

Operating Expenses

Sales and Marketing

Sales and marketing expenses during the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended

(in thousands, except percentages)

Sales and marketing

Percentage of revenue

GAAP sales and marketing

Stock-based compensation expense

Amortization of acquired intangible assets

Non-GAAP sales and marketing

Non-GAAP percentage of revenue

Sales and marketing expenses increased 16.4% to $70.3 million for the six months ended June 30, 2025, primarily driven by a $7.1 million increase in personnel costs, and a $1.8 million increase in marketing spend.

General and Administrative

General and administrative expenses during the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended

(in thousands, except percentages)

General and administrative

Percentage of revenue

GAAP general and administrative

Stock-based compensation expense

Non-GAAP general and administrative

Non-GAAP percentage of revenue

General and administrative expenses increased 9.5% to $38.4 million for the six months ended June 30, 2025.

The increase was primarily driven by a $3.2 million increase in personnel costs.

Research and Development

Research and development expenses during the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended

(in thousands, except percentages)

Research and development

Percentage of revenue

GAAP research and development

Stock-based compensation expense

Non-GAAP research and development

Non-GAAP percentage of revenue

Research and development expenses increased 11.6%

million for the

June 30, 2025

, primarily driven by a $1.9 million increase in personnel costs associated with the expansion of our workforce.

Income Tax Provision

Income tax expense during the six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended

(in thousands, except percentages)

Income tax expense

AvePoint’s income tax expense for the six months ended June 30, 2025 was $5.3 million, compared to $6.0 million for the six months ended June 30, 2024.

The effective tax rate was 44.9% for the six months ended June 30, 2025, compared to (67.2)% for the six months ended June 30, 2024.

In assessing the need for a valuation allowance, the Company has considered all available positive and negative evidence including its historical levels of income, expectations of future taxable income, future reversals of existing taxable temporary differences and ongoing tax planning strategies.

Non-GAAP Operating Income and Non-GAAP Operating Margin

1 unchanged sentence

Three Months Ended

Six Months Ended

(in thousands, except percentages)

11 unchanged sentences

We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance and trends as well as our performance relative to our peers, (b) to set and approve spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, and (e) to assess financial discipline over operational expenditures.

GAAP operating margin for the three months ended March 31, 2025 and 2024 was 3.5% and (4.3)%, respectively.

Non-GAAP operating margin for the three months ended March 31, 2025 and 2024 was 14.4% and 8.9%, respectively.

GAAP operating margin for the three months ended June 30, 2025 and 2024 was 7.0% and (2.7)%, respectively.

Non-GAAP operating margin for the three months ended June 30, 2025 and 2024 was 18.4% and 11.2%, respectively.

The increase in non-GAAP operating margin was primarily attributable to the Company’s enhanced focus on expense management and continued scaling of the Company’s channel partner strategy.

GAAP operating margin for the six months ended June 30, 2025 and 2024 was 5.3% and (3.5)%, respectively.

Non-GAAP operating margin for the six months ended June 30, 2025 and 2024 was 16.5% and 10.1%, respectively.

The increase in non-GAAP operating margin was primarily attributable to the Company’s enhanced focus on expense management and continued scaling of the Company’s channel partner strategy.

Liquidity and Capital Resources

As of March 31, 2025, we had $351.5 million in cash and cash equivalents and $0.3 million in short-term investments and no outstanding debt.

As of June 30, 2025, we had $429.8 million in cash and cash equivalents and $0.3 million in short-term investments and no outstanding debt.

Our short-term liquidity needs primarily include working capital for sales and marketing, research and development, and continued innovation.

9 unchanged sentences

Pursuant to the Loan Agreement, we pledged, assigned and granted HSBC a security interest in all shares of our subsidiaries, future proceeds, and assets as security for our obligations under the Loan Agreement.

As of March 31, 2025, we are compliant with all covenants and had no borrowings outstanding under the Loan Agreement.

As of June 30, 2025, we are compliant with all covenants and had no borrowings outstanding under the Loan Agreement.

We believe that our existing cash and cash equivalents, our cash flows from operating activities, and our borrowing capacity under our Loan Agreement will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months.

3 unchanged sentences

The following table sets forth a summary of AvePoint’s cash flows for the periods indicated.

Three Months Ended

Six Months Ended

(in thousands)

3 unchanged sentences

Operating Activities

Net cash provided by operating activities for the three months ended March 31, 2025 was $0.5 million, reflecting AvePoint’s net income of $3.6 million, adjusted for non-cash items of $14.0 million and net cash outflows of $17.1 million from changes in operating assets and liabilities.

The primary drivers of non-cash items were stock-based compensation which reflects ongoing compensation and offset by a decrease in the mark to market value of warranty liabilities.

Net cash provided by operating activities for the six months ended June 30, 2025 was $20.8 million, reflecting AvePoint’s net income of $6.5 million, adjusted for non-cash items of $32.8 million and net cash outflows of $18.5 million from changes in operating assets and liabilities.

The primary drivers of non-cash items were stock-based compensation which reflects ongoing compensation and foreign currency remeasurement losses.

The drivers of changes in operating assets and liabilities are seasonal in nature.

These drivers are related to a decrease in accounts receivable due primarily to the timing of customer invoices and a decrease in prepaid expenses and other current assets primarily related to prepaid rent, an increase in deferred revenue, offset by a decrease in accrued expenses primarily due to accrued bonuses, commissions and payroll taxes.

Net cash provided by operating activities for the three months ended March 31, 2024 was $7.8 million, reflecting AvePoint’s net loss of $2.0 million, adjusted for non-cash items of $11.0 million and net cash outflows of $1.3 million from changes in operating assets and liabilities.

Net cash provided by operating activities for the six months ended June 30, 2024 was $23.9 million, reflecting AvePoint’s net loss of $14.9 million, adjusted for non-cash items of $33.9 million and net cash inflows of $4.9 million from changes in operating assets and liabilities.

The primary drivers of non-cash items were stock-based compensation which reflects ongoing compensation and an increase in the mark to market value of earn-out and warranty liabilities.

2 unchanged sentences

Investing Activities

Net cash used in investing activities for the three months ended March 31, 2025 was $16.9 million.

It primarily consisted of $14.9 million cash paid in business acquisitions, $1.5 million of purchases of property and equipment, and $0.5 million from the capitalization of internal use software.

Net cash used in investing activities for the three months ended March 31, 2024 was $1.5 million.

It primarily consisted of $0.5 million of purchases of property and equipment, $0.4 million of purchases of short-term investments, and $0.4 million from the capitalization of internal use software, partially offset by $0.2 million from the maturity of short-term investments.

Net cash used in investing activities for the six months ended June 30, 2025 was $30.3 million.

It primarily consisted of $14.9 million of cash paid in business acquisitions, $12.1 million to repurchase the noncontrolling interest in MaivenPoint Pte.

Ltd., $2.5 million of purchases of property and equipment, and $0.8 million from the capitalization of internal use software.

Net cash used in investing activities for the six months ended June 30, 2024 was $2.6 million.

It primarily consisted of $1.4 million of purchases of short-term investments, $0.9 million of purchases of property and equipment, $0.8 million issuance of notes receivables, and $0.7 million from the capitalization of internal use software, partially offset by $1.2 million from the maturity of short-term investments.

Financing Activities

Net cash provided by financing activities for the three months ended March 31, 2025 was $76.2 million, primarily consisting of $87.3 million of proceeds from the exercises of warrants and $0.7 million of proceeds from the exercise of stock options, partially offset by $11.8 million in repurchases of common stock under the previously announced Share Repurchase Program that authorizes us to repurchase up to $150 million of our common shares (the “ Share Repurchase Program ”).

Net cash used in financing activities for the three months ended March 31, 2024 was $13.0 million, primarily consisting of $13.7 million in repurchases of common stock under the Share Repurchase Program, partially offset by $0.8 million of proceeds from the exercise of stock options.

Net cash provided by financing activities for the six months ended June 30, 2025 was $146.8 million, primarily consisting of $157.7 million of proceeds from the exercises of warrants and $8.0 million of proceeds from the exercise of stock options, partially offset by $19.0 million in repurchases of common stock under the previously announced Share Repurchase Program that authorizes us to repurchase up to $150 million of our common shares (the “ Share Repurchase Program ”).

Net cash used in financing activities for the six months ended June 30, 2024 was $15.8 million, primarily consisting of $19.2 million in repurchases of common stock under the Share Repurchase Program, partially offset by $3.3 million of proceeds from the exercise of stock options.

Credit Facility

14 unchanged sentences

The initial terms of the leases expire on various dates through 2030.

As of March 31, 2025, the commitments related to these operating leases is $19.7 million, of which $7.5 million is due in the next twelve months.

As of June 30, 2025, the commitments related to these operating leases is $20.6 million, of which $8.0 million is due in the next twelve months.

Operating Segment Information

48 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements