Aaidebook Holdings Q3 2025 Shareholders Update
The third quarter of 2025 reflects continued revenue growth, improving operating leverage, and disciplined execution across both our home care and software divisions. We expanded top-line performance year over year, improved gross margin, and increased net income while maintaining tight control over overhead and administrative costs. With our operating model stabilized and key strategic shifts now implemented, we are positioned to scale selectively and reinvest into targeted growth initiatives.
Disclaimer: This update includes forward-looking statements. Actual results may differ materially due to risks and uncertainties. Please review our full offering documents on StartEngine for more information.
Year-over-Year Financial Highlights
Total income increased from approximately $2.02 million in Q3 2024 to approximately $2.41 million in Q3 2025, an increase of roughly $387,000
Gross margin improved from approximately $293,000 to approximately $351,000, an increase of roughly $60,000
Net income increased from approximately $66,000 in Q3 2024 to approximately $85,000 in Q3 2025, an improvement of roughly $19,000
Operating expenses increased modestly and in line with scale:
Overhead costs increased by approximately $20,600
Administrative costs increased by approximately $5,800
COGS increased proportionally with revenue, preserving positive margins
These results reflect disciplined cost management, improved payer and client mix, and a continued focus on operational efficiency.
Home Care Division: Organic Growth and Payer Strategy
During Q3, the Home Care Division continued its transition toward an organic growth strategy following the suspension of acquisition activity. With CDPAP fully exited and no residual exposure, management focused on strengthening core operations and preparing for scalable digital marketing initiatives.
A deeper analysis of payer performance confirmed that preferred insurance partners provide stronger margins, operational support, and long-term stability. As a result, marketing strategies are being developed to align more closely with payer objectives and referral behavior.
Our internal metrics continue to support this approach. The average home care client generates over $1,000 per month in revenue, receives approximately 45 hours of service per week, and remains in service for an average of 119 weeks. This places estimated lifetime value at approximately $17,000 per client, allowing management to set disciplined acquisition budgets and invest with clear return thresholds.
OnTime ITS: Platform Stabilization and Client Quality Focus
In Q3, OnTime ITS continued executing on the strategic shift initiated in Q2. With additional technical resources onboarded in June, the team progressed through early stages of the ReactJS migration and addressed critical platform updates that had been previously deferred.
Client acquisition remained intentionally selective. Rather than onboarding very early-stage agencies prematurely, emphasis was placed on nurturing startup relationships until agencies are operationally ready to onboard staff. This approach has reduced early churn and improved overall client quality.
The strongest adoption continues to come from agencies with an existing workforce or active patient base that lack integrated tools for scheduling, authorization management, and application tracking. In parallel, management continues to evaluate a broader industry-agnostic expansion of the platform to serve other service-based businesses beyond home care.
Acquisition Update
No acquisitions were completed during Q3. Management continues to evaluate opportunities in the New York market that align with our financial, compliance, and operational criteria. Commitments from a family office remain in place for participation in future transactions that meet these standards.
Looking Ahead
As we move toward the end of 2025, management priorities include:
Scaling digital marketing initiatives aligned with preferred payers and referral partners
Continuing the ReactJS migration and improving platform usability and stability
Maintaining lean operations with capacity to support up to 50 percent additional growth without incremental administrative hires
Reinvesting excess cash flow into lead generation and targeted marketing efforts
Evaluating acquisition opportunities under strengthened legal and compliance review processes
The company remains focused on disciplined growth, improving client value, and building scalable operations across both service and technology offerings. Through continued execution, we believe Aaidebook Holdings is well positioned to drive long-term shareholder value.
