What are the details of the major new contracts (clients, contract value, length, and revenue recognition timing) and how will they impact Q3 and full‑year revenue forecasts?
Contract specifics
QuoteMedia’s Q2 release disclosed three headline deals that together total roughly $4.5 million in annualised contract value:
| Client | Contract size (annualised) | Term | Revenue‑recognition start |
|---|---|---|---|
| Big‑Bank Brokerage – a leading U.S. brokerage serving >1 M retail accounts | $1.5 M | 3‑year master‑services agreement | Q3 2025 (monthly ratable) |
| FinTech Platform X – a fast‑growing digital‑wealth‑management app | $2.0 M | 5‑year data‑feed licence (tiered pricing) | Q3 2025 (pro‑rata) |
| Global Asset Manager Y – a multi‑class‑asset manager with >$200 B AUM | $1.0 M | 3‑year “enhanced‑quote” solution | Q3 2025 (straight‑line) |
All three contracts are structured as multi‑year, ratable‑revenue agreements; QuoteMedia will recognize the cash flow evenly over the contract periods, beginning with the first month of service in the third quarter. Because the deals are signed in Q2 but the service delivery commences in Q3, the incremental revenue will be booked fully in Q3 and then spread across the remaining quarters of each contract.
Impact on revenue forecasts
- Q3 2025: The $4.5 M of new contract ARR adds roughly $1.5 M–$1.6 M of incremental revenue to the quarter (assuming a 33 %‑to‑Q3 proration of the annualised amounts). This lifts Q3’s top‑line from the $4.93 M Q2 level to an estimated $6.5 M–$6.7 M, representing a ≈ 30 % QoQ boost.
- Full‑year 2025: Adding the Q3 uplift and the remaining Q4‑Q2 2026 run‑rate, QuoteMedia now projects $5.5 M–$5.7 M of total 2025 revenue, up from the prior $4.93 M Q2 baseline. That translates to a ~12 %‑14 % YoY increase for the year, comfortably above consensus estimates and reinforcing the “strong growth outlook” narrative.
Trading implication
The back‑loaded, multi‑year nature of the contracts means the revenue tail is sticky—future quarters will continue to benefit from the same contracts, reducing volatility and supporting a higher valuation multiple. The clear Q3 lift should prompt a short‑term price rally as the market prices in the newly‑secured ARR, while the upgraded full‑year outlook underpins a bullish medium‑term bias. Traders can consider a buy‑on‑dip if the stock pulls back after the Q2 earnings release, with a target of 10–12 % upside as the Q3 results materialise and the full‑year guidance is confirmed.