CID Holdco (NASDAQ:DAIC) executives used the company’s fourth-quarter and full-year 2025 earnings call to frame 2025 as a transition year from development-stage work to commercial operations, highlighting new revenue generation, progress on its subscription platform, and a more measured 2026 outlook weighted toward recurring revenue.
Company highlights 2025 transition to commercial operations
CEO Ed Nabrotzky said the company’s “asset intelligence” offering is built on two pillars: an IoT implementation for in-process data collection and a cloud-based software suite designed to use that data for AI-enabled workflows. Nabrotzky described the approach as giving physical assets a “persistent virtual identity,” real-time 3D location, and process context. While the data currently serves customers primarily through dashboards, management said it expects future usage to expand through APIs for autonomous systems.
Q4 revenue driven primarily by hardware; first subscription contribution noted
Management said fourth-quarter revenue closed with its first subscription contribution of quarterly recurring revenue, describing it as an early step toward expanding subscriptions in 2026. Nabrotzky emphasized that the company’s subscription model depends on enrolling deployed devices that feed data to its cloud software, positioning hardware sales as a “forward indicator” of future subscription revenue.
Chief Operating Officer and Chief Financial Officer Charles Maddox said fourth-quarter 2025 revenue increased to $4.5 million from $0 in the year-ago quarter, driven by the transition from development stage to commercial revenue generation after the business combination.
Maddox added that gross profit for the fourth quarter grew to $2.0 million, representing a gross margin of 43.7%, compared with $0 in the prior-year period. He attributed the gross profit increase to revenue growth “gained almost entirely from hardware sales.”
Technology, operations, and partnerships emphasized
Nabrotzky said the company completed its “generation three” SaaS platform in 2025, including full multi-tenant architecture, which management described as the backbone of its recurring revenue model. He said the platform is designed to enable enterprise-scale deployments with real-time asset visibility, predictive analytics, and integration with customer infrastructure. The company also reported achieving SOC 2 Type 1 cybersecurity certification during the year, which management said is important for enterprise and government customers.
Operationally, the company’s manufacturing subsidiary, Dot Works, in Barceloneta, Puerto Rico, “significantly expanded operations,” and inventory grew as the company built stock to support an expanding order pipeline. Nabrotzky also said the company continued to expand software teams in India, with a substantial portion of programming done in Bangalore.
Management also outlined partner ecosystem developments during 2025, including:
- An international distribution partnership with CanTech Group in Australia to extend reach in the Asia Pacific region
- A strategic partnership with Wiliot focused on industrial-grade ambient IoT solutions
- A partnership with Wurth Industry North America aimed at industrial supply chain market applications
Nabrotzky said the partnerships validate the platform and expand go-to-market reach beyond what a direct sales team can do alone.
2026 outlook: bookings and revenue guidance reiterated; weighted to second half
Looking ahead, Nabrotzky said the company is “affirming” 2026 bookings guidance of $12 million to $15 million and revenue guidance of $6 million to $7.5 million. He added that both bookings and revenue are expected to be back-end weighted, occurring mostly in the third and fourth quarters of 2026.
He characterized the revenue outlook as “more measured than earlier projections,” attributing the change to a strategic shift toward recurring subscription revenue and long-term margin expansion, rather than earlier-period hardware transactions. Management said it expects to book three- to five-year subscription contracts with a strong retention profile, supported by the installed hardware base for data collection and the software solution for operational execution.
Nabrotzky also noted labor reductions and cost controls intended to constrain spending and align costs with subscriber milestone achievement. He outlined 2026 priorities as converting pipeline into revenue, expanding the customer base, deepening existing customer relationships, scaling the partner ecosystem, and increasing the proportion of recurring SaaS revenue in the overall mix.
Financial details: IPO/de-SPAC costs, adjusted EBITDA loss, and expense trends
Maddox said 2025 annual results included approximately $27 million of expenses “primarily related to our IPO and de-SPAC process,” including changes in fair value of SAFE notes and convertible notes, loss on debt extinguishment, transaction costs, and acquisition and integration costs. He said the company provided adjusted EBITDA as a supplemental, non-GAAP measure excluding the effects of those non-recurring transactions.
For the fourth quarter, Maddox reported adjusted EBITDA of a $2.2 million loss, compared with a $1.9 million loss in the year-ago quarter. Operating expenses totaled $4.2 million, up from $2.4 million in the prior-year quarter, which he said was primarily due to public-company compliance costs tied to de-SPAC actions and public market requirements.
Net loss for the fourth quarter narrowed to $2.4 million, or $0.08 per basic and diluted share, compared with a net loss of $2.7 million, or $0.22 per basic and diluted share, in the year-ago quarter.
On liquidity and capital planning, Maddox said the company has access to an equity line of credit that provides financial flexibility as it scales operations in 2026. He said capital allocation priorities include investing in revenue-generating activities such as expanding the commercial team, co-marketing, and partner onboarding, along with continued software platform development. Maddox also said the company will evaluate capital sources and referenced its S-1 filing that outlines a potential secondary capital raise in 2026.
In the Q&A portion of the call, management highlighted a “land and expand” strategy focused on solving an initial customer problem, then expanding to additional problems within the same facility and across multiple facilities, with “share of customer” cited as a key near-term opportunity. Executives also said they expect to build platform capabilities through additional partnerships and partner modules rather than attempting to develop everything internally.
About CID Holdco (NASDAQ:DAIC)
CID Holdco, Inc is a manufacturing company in the Computer Software industry.
