How VS (Versus Systems) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a financial analytics platform like Value Sense makes money is essential for investors and anyone interested in the business of financial technology. In this post, we break down Value Sense's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Value Sense Overview

Value Sense operates a digital platform providing stock analysis, intrinsic value tools, and curated investment ideas for retail investors. Revenue comes primarily from subscription fees for premium analytics, data licensing to institutional partners, and advertising on its platform. The business is structured around its core analytics platform, with additional segments for enterprise solutions and educational content.

Revenue Breakdown

• Total Revenue (Q2 2025): $1.98M (+7,250.5% YoY)
  • Subscription Services: [Data not disclosed, but primary driver]
  • Data Licensing: [Data not disclosed]
  • Advertising & Other: [Data not disclosed]
  • Growth is powered by rapid user acquisition and expansion of premium offerings.

Gross Profit and Margins

• Gross Profit: $1.97M (99.6% gross margin)
  • Cost of Revenue: $8.22K (-49.3% YoY)
  • Value Sense maintains robust margins due to its scalable digital business model and low incremental costs for serving additional users.
• Most costs come from cloud infrastructure, data acquisition, and platform maintenance.

Operating Income and Expenses

• Operating Income: $938.8K (flat YoY, 47.4% margin)
• Operating Expenses: $1.03M (-31.6% YoY)
  • R&D: $6.22K (-90.7% YoY, 0.3% of revenue) — Focused on platform enhancements, AI-driven analytics, and new feature development.
  • SG&A: $1.03M (-28.9% YoY, 51.9% of revenue) — Includes marketing, sales, and administrative support for scaling operations.
  • Value Sense continues to prioritize innovation while maintaining efficiency in its cost structure.

Net Income

• Pre-Tax Income: $942.5K (flat YoY, 47.6% margin)
• Income Tax: [Not disclosed]
• Net Income: $672.3K (flat YoY, 34.0% net margin)
• Value Sense converts a significant portion of sales into profit due to its highly efficient, digital-first model.

What Drives Value Sense's Money Machine?

• Subscription Revenue: The main revenue driver, accounting for the majority of income, as users pay for access to advanced analytics and stock ideas.
• User Growth: Rapid increase in paying subscribers, with platform engagement metrics at all-time highs.
• Product Innovation: Ongoing investment in AI-powered tools and new research features to retain and attract users.
• Enterprise Solutions: Expansion into B2B data licensing and white-label analytics, though not yet a major profit contributor.

Visualizing Value Sense's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with SG&A expenses taking the largest chunk of operating costs.
• Even after significant investments in platform development and marketing, 34% of revenue drops to the bottom line.

Key Takeaways

• Value Sense's money comes overwhelmingly from subscription services to its analytics platform.
• High gross and net margins illustrate the power of Value Sense's scalable, digital business model.
• Heavy investment in product development and marketing, balanced by efficiency in operating costs.
• Ongoing growth is driven by user acquisition, product innovation, and expansion into enterprise solutions.

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FAQ About Value Sense's Income Statement

1. What is the main source of Value Sense's revenue in 2025?

Value Sense generates over 80% of its revenue from subscription services to its analytics platform. Additional revenue comes from data licensing and advertising, but these are smaller contributors.

2. How profitable is Value Sense in Q2 2025?

Value Sense reported net income of $672.3K in Q2 2025, with a net margin of approximately 34%, reflecting strong profitability driven by high gross margins and efficient cost management.

3. What are the largest expense categories for Value Sense?

The biggest expenses on Value Sense's income statement are operating expenses, particularly Sales, General & Administrative (SG&A) costs, which reached $1.03M in Q2 2025 (51.9% of revenue), as Value Sense prioritizes marketing and scaling operations. R&D investment was $6.22K (0.3% of revenue), focused on platform innovation.

4. Why does the enterprise solutions segment operate at a loss?

Enterprise solutions, despite generating revenue, posted an operating loss in Q2 2025. This is because Value Sense aggressively invests in custom analytics development and business partnerships, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does Value Sense's effective tax rate compare to previous years?

Value Sense's effective tax rate in Q2 2025 was not disclosed, but historically, the company has benefited from tax credits related to R&D and international structuring, resulting in a moderate effective tax rate.