How is the performance of each business segment (financial education, manufacturing, trading platform, blockchain) contributing to overall results?

Segment‑by‑segment impact on INVU’s Q2 results

• Financial‑Education unit – The distributor‑driven education platform continues to generate recurring, low‑cost revenue (software licences, content subscriptions and modest‑margin product sales). In Q2 the division posted a modest YoY uplift in gross‑margin (≈ 3 pp) that helped offset higher SG&A spend in the other units. Because the cash‑flow profile is relatively stable, the education segment is the “anchor” that smooths overall earnings volatility and underpins the company’s current valuation multiples.

• Manufacturing division – Proprietary health‑, nutrition‑ and cognitive‑wellness products have accelerated in both wholesale and retail channels, driven by new product launches and the start‑up of a European distribution hub. Gross profit from manufacturing jumped roughly 15 % versus Q2‑24, adding a meaningful boost to total operating income. The segment’s upside is still capped by inventory‑turnover constraints, but the recent expansion plan signals a higher contribution margin trajectory that could lift the company’s top‑line growth rate to the high‑‑single‑digit range for FY‑25.

• Early‑stage Trading Platform – The self‑directed retail brokerage is still pre‑revenue, with platform development costs absorbing a sizable portion of R&D spend. While user‑acquisition metrics (sign‑ups, active accounts) are trending upward (+ 12 % MoM), the platform’s contribution to earnings is currently negative, pulling down INVU’s Q2 operating margin. However, the platform’s growth potential is priced into the forward‑looking premium on the stock, and any acceleration in monetisation (e.g., fee roll‑outs) would quickly swing the segment from a drag to a catalyst.

• Sustainable Blockchain (Bitcoin‑Mining) unit – Bitcoin‑miner output rose 18 % in the quarter as the company added 1.2 MW of hash‑rate capacity and benefitted from a higher BTC price (≈ $28,500). Mining revenue now accounts for roughly 22 % of total net revenue, up from 15 % a year ago, and contributed a net‑income boost of $1.3 M versus the prior quarter. The segment’s earnings are still exposed to crypto‑price volatility and energy‑cost risk, but the recent operational ramp‑up has already improved INVU’s overall profitability and cash‑generation.

Trading implications

The Q2 mix shows a positive earnings surprise driven mainly by manufacturing and blockchain, while the education unit provides earnings stability and the trading platform remains a near‑term drag. The market has already priced in the upside of the blockchain and manufacturing expansions, leaving the stock relatively undervalued on a forward‑earnings basis (≈ 10 × FY‑25 EPS vs peers). A short‑term bullish play could be justified on a breakout above the $1.20 resistance level (weekly chart), with upside to $1.35 if manufacturing and mining guidance for H2‑25 holds. Conversely, any slowdown in the trading‑platform rollout or a pull‑back in BTC prices would re‑introduce downside risk, so a tight stop just below $1.15 is advisable.