Vaso Corp Hits Record Revenue After Strategic Business Unit Sale

PLAINVIEW, N.Y. – March 31, 2026 – Vaso Corporation (OTCQX: VASO) announced a record-setting financial performance for 2025, achieving its highest-ever annual revenue of $89.1 million. The 3% year-over-year growth demonstrates the MedTech company’s resilience and strategic agility, as the milestone was reached even after the deliberate sale of its healthcare IT business unit late in the year.

The company’s full-year results, released today, also revealed a significant 70% increase in net income, which rose to $1.6 million from $951 thousand in 2024. This profitability boost was coupled with a dramatic surge in cash flow from operations, which nearly tripled to $9.3 million for the year, bolstering the company’s cash reserves to a robust $35.1 million.

“The Company’s annual revenue reached a record $89.1 million for the fiscal year 2025, an increase of $2.3 million, or 3%, when compared to the prior year’s revenue, despite the sale of its healthcare IT business unit in November 2025,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “In summary, we continue to sustain significant top-line growth and maintain bottom-line profitability, while at the same time generating a substantial amount of free cashflow.”

A Strategic Pivot to Sharpen Focus

A key element of Vaso's 2025 strategy was the divestiture of its VasoHealthcare IT Corp. subsidiary in November. The unit, which operated as a value-added reseller for healthcare imaging software, was sold to Nanox Imaging Ltd. for a consideration of up to $800,000. While the sale led to a predictable decrease in the company's IT segment revenue for the fourth quarter, the move appears to be a calculated decision to streamline operations and shed a non-core asset.

Research indicates the divested unit was an underperforming part of the business, representing less than 5% of Vaso's total revenue and contributing to operating losses in prior periods. By selling the subsidiary, Vaso not only generated a gain on the sale that positively impacted its net income but also sharpened its corporate focus on its more profitable and scalable core businesses. Dr. Ma noted that the company has “taken steps to re-align its businesses to improve operating efficiency and profitability,” a statement directly reflecting this strategic pruning.

The company's IT segment will now concentrate on its managed network services provider, NetWolves Network Services LLC, which saw increased sales during the fourth quarter, partially offsetting the revenue loss from the divested unit.

The Power of Partnership and Services

The standout performer in Vaso's portfolio remains its professional sales service segment, VasoHealthcare. Operating as the exclusive sales representative for GE HealthCare's diagnostic imaging and ultrasound products in specific U.S. market segments, this division is the primary engine of Vaso’s growth. For the full year 2025, commission revenues in this segment surged by 6.9% to $44.2 million.

This robust performance was attributed to a higher volume of equipment deliveries by its partner and more favorable blended commission rates. The strength and stability of this crucial partnership were underscored in December 2025 when the sales agreement with GE HealthCare was extended for a fifth time, now running through the end of 2030. This long-term commitment provides significant visibility and security for a major portion of Vaso's revenue stream.

Further evidence of this segment's momentum can be found in the company's balance sheet. Deferred revenue, a key indicator of future business, grew by 10.6% to $38.6 million as of December 31, 2025. The company stated this increase was primarily due to order bookings in the professional sales service segment outpacing equipment deliveries, signaling a strong pipeline of revenue to be recognized in upcoming quarters.

Deconstructing a Complex Bottom Line

While the headline numbers of record revenue and increased net income paint a positive picture, a deeper look at Vaso’s financials reveals a more nuanced story. The company reported a net income of $1.1 million for the fourth quarter of 2025, a decrease from the $2.1 million reported in the same period of 2024. This decline was primarily attributed to a write-down for impairment of goodwill and a 5.9% increase in selling, general, and administrative (SG&A) expenses, which were partially offset by tax benefits.

Furthermore, the company's Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), a non-GAAP metric used to evaluate core operational performance, told a different story than net income. For the full year, Adjusted EBITDA was negative $1.5 million, a significant swing from a positive $1.0 million in 2024. This discrepancy highlights the impact of several key items on the company's GAAP-reported net income.

The positive net income was bolstered by a $2.9 million income tax benefit and the gain on the sale of the IT business. When these items, along with non-cash charges like depreciation, amortization, and goodwill impairment, are factored out, the resulting Adjusted EBITDA figure suggests underlying operational profitability faced pressure during the year, largely from rising SG&A costs related to personnel and travel in its growth segments.

Despite the mixed profitability signals, the company’s ability to generate $9.3 million in cash from its operating activities is a powerful testament to its financial health. This strong cash generation, which significantly improved from $3.3 million in 2024, allowed Vaso to increase its cash and cash equivalents to $35.1 million, fortifying its balance sheet and providing ample capital for future strategic investments in its streamlined and focused business lines.