VerticalScope (FORA.TO) late on Tuesday revised its financial outlook for 2025 and provided a business update.

The company now expects full-year 2025 adjusted EBITDA of US$21 million to US$24 million and free cash flow of US$20 million to US$22 million. VerticalScope didn't provide its previous outlook.

Following the release of its fourth-quarter and full-year 2024 results, the company said it has observed some headwinds impacting the business in early 2025. These include changes to its video advertising products and the impact of Google's March core algorithm update, which has affected organic traffic to VerticalScope's communities.

Changes to its video advertising products have resulted in decreased bidder activity and lower costs per thousand impressions, leading to reduced revenue from video ads in the first quarter. Management now expects video advertising revenue to decline in the first quarter and to face continued headwinds for the rest of the year.

Google's March core algorithm update has led to a decline of about 10% in monthly active users. The company is working on recovery initiatives, but timelines for algorithm impacts are uncertain.

Meanwhile, VerticalScope continues to invest in its AI-driven product roadmap, including the development of AI-powered translations, answers, thread summaries and enhanced search experiences within its FORA platform.