MeridianLink, Inc. reported a net revenue of $316.3 million for the fiscal year ending December 31, 2024, marking a 4% increase from $303.6 million in 2023. The growth was primarily driven by a $17.1 million increase in revenue from Lending Software Solutions, which was partially offset by a $4.4 million decline in Data Verification Software Solutions due to lower mortgage-related volumes. The company experienced a gross profit of $207.8 million, a 6% increase from the previous year, attributed to the higher revenue from Lending Software Solutions and reduced third-party costs.
Operating expenses rose significantly, totaling $203.1 million, up from $179.6 million in 2023, largely due to a 26% increase in general and administrative expenses, which included a notable rise in share-based compensation and legal fees. Research and development expenses decreased by 17% to $39.5 million, reflecting a reduction in headcount following the company's 2024 Realignment Plan, which aimed to streamline operations and reduce costs. The company reported an operating income of $4.6 million, a decrease from $15.5 million in 2023, and a net loss of $29.8 million compared to a loss of $42.5 million the previous year.
MeridianLink's customer base expanded to approximately 2,000 financial institutions, including banks, credit unions, and mortgage lenders. The company continues to focus on enhancing its product offerings and customer engagement through its multi-product platform, MeridianLink One. In 2024, the company launched MeridianLink Access, a new point-of-sale solution aimed at improving customer experience in online lending and account opening processes. The company also completed a restructuring plan that included a workforce reduction of about 12% to better align resources with strategic priorities.
The company’s financial position remains robust, with cash and cash equivalents totaling $92.8 million as of December 31, 2024, alongside an unused revolving credit facility of $50 million. However, MeridianLink has identified a material weakness in its internal controls over financial reporting, primarily related to revenue recognition processes. The company is actively working on remediation efforts to address these deficiencies. Looking ahead, MeridianLink anticipates continued challenges in the financial services market, particularly due to economic uncertainties and fluctuating interest rates, which may impact customer spending and loan volumes.
In February 2025, MeridianLink's board authorized a new stock repurchase program of up to $129.5 million, superseding previous programs. This decision reflects the company's commitment to returning value to shareholders while navigating the complexities of the current economic landscape. The company remains focused on leveraging its technology to support financial institutions in their digital transformation efforts, aiming to capture growth opportunities in the evolving market.
About MeridianLink, Inc.
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