Urgent.ly Inc. Earnings Call: Optimism Amid Challenges

Urgent.ly Inc ((ULY)) has held its Q3 earnings call. Read on for the main highlights of the call.

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Urgent.ly Inc. Earnings Call: A Cautiously Optimistic Outlook

The recent earnings call for Urgent.ly Inc. reflected a mixed sentiment, highlighting significant operational progress and financial improvements, such as achieving positive non-GAAP operating income and reducing operating expenses. Despite these achievements, challenges remain, including a notable revenue decline from the previous year and ongoing compliance issues with NASDAQ listing requirements. Nevertheless, the company’s positive momentum and strategic partnerships suggest a cautiously optimistic outlook.

Achievement of Positive Non-GAAP Operating Income

Urgent.ly Inc. marked a significant milestone in Q3 2025 by achieving positive non-GAAP operating income. This achievement represents an important profitability inflection point for the company, indicating a turnaround in its financial performance.

Revenue Achievement and Guidance Commitment

The company reported $32.9 million in revenue for the third quarter, meeting expectations and marking the eighth consecutive quarter of delivering on revenue guidance. This consistency underscores Urgent.ly Inc.’s commitment to its financial targets despite challenging market conditions.

Gross Margin Improvement

Urgent.ly Inc. achieved a gross margin of 25% for Q3 2025, a four-point improvement over the same quarter last year and a 13-point improvement over three years. This improvement reflects the company’s efforts in enhancing operational efficiencies and cost management.

Cost Reductions

The company successfully reduced non-GAAP operating expenses by $2.7 million, or 25%, compared to the same period last year. This reduction demonstrates significant operational efficiencies and a focus on cost optimization.

New Contracts and Partnerships

Urgent.ly Inc. has signed new contracts with insurance providers, fleet, autonomous vehicle, and affinity brand verticals. Notably, the company partnered with Sony Honda Mobility of America to provide services for the Aphelio brand, showcasing its strategic expansion efforts.

Revenue Decline from Previous Year

Despite meeting revenue expectations, the Q3 2025 revenue of $32.9 million represented a 9% decline from the same quarter last year. This decline was primarily due to the reduction in dispatch volume following the early termination of a top-five global OEM customer.

NASDAQ Listing Compliance Issue

Urgent.ly Inc. was formally notified by NASDAQ about falling below the minimum net income requirement for continued listing. However, the company secured an extension until February 2026 to regain compliance, providing some breathing room to address this issue.

High Debt Levels

As of September 30, 2025, Urgent.ly Inc. had a principal debt balance of $61 million, which remains a significant burden. Managing this debt level will be crucial for the company’s financial health moving forward.

Forward-Looking Guidance

Looking ahead, Urgent.ly Inc. aims to maintain non-GAAP operating breakeven and continue expanding its business through strategic partnerships and market penetration. The company is focused on renewing key contracts, particularly in the insurance sector, and expanding its market presence to fuel future growth. Additionally, the extension from NASDAQ to regain compliance with listing requirements by February 2026 provides a timeline for addressing financial challenges.

In summary, the earnings call for Urgent.ly Inc. highlighted a cautiously optimistic outlook, with significant operational progress and strategic partnerships offsetting challenges like revenue decline and compliance issues. The company’s focus on cost optimization and market expansion positions it well for future growth, although managing debt levels and meeting NASDAQ requirements remain critical tasks.