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Zalaris (ZAL) investor relations material

Zalaris Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary24 Oct, 2025

Executive summary

  • Achieved record Q3 revenue of NOK 375 million, up 10.3% year-over-year, with adjusted EBIT of NOK 47 million and a margin of 12.6%, driven by strong Managed Services and new contracts.

  • Renewed long-term SAP partnership, migrating PeopleHub to SAP S/4HANA Cloud, ensuring platform support through 2040 and enabling future AI-driven innovation.

  • Secured a EUR 40 million revolving credit facility, refinancing existing debt, reducing annual interest expenses, and increasing financial flexibility.

  • Signed major new and renewed contracts across Europe, expanding client base and service scope, including deals in Germany and with major European clients.

Financial highlights

  • Q3 revenue reached NOK 375 million, up 10.3% year-over-year; Managed Services revenue grew 14% to NOK 289 million, representing 77% of total revenue.

  • Adjusted EBIT for Q3 was NOK 47 million, a 27% increase year-over-year, with a margin of 12.6%.

  • Net profit for the period was NOK 18.9 million, up from NOK 8.3 million last year.

  • Net operating cash flow for Q3 was NOK 10.9 million, down from NOK 48.4 million last year due to working capital timing and share option settlements.

  • Net interest-bearing debt at quarter-end was NOK 244.7 million.

Outlook and guidance

  • Projected revenue increase of more than 16% for 2025 and 2026 compared to 2024, based on signed contracts and new BPO deals.

  • Ambition to reach NOK 2 billion in annualized revenue by Q4 2028 with an EBIT margin of 13%-15%.

  • No significant obstacles anticipated to achieving target EBIT margin in 2026-2027.

  • Profitability to improve via scaling, automation, and increased use of near/offshore centers.

  • Expects continued revenue growth from long-term BPaaS/SaaS contracts and expansions, with 10% average annual revenue growth and 1.5-3% annual churn.

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Frequently asked questions

Zalaris is a Nordic based leading partner for integrated HR and payroll services, reducing complexity and enabling companies to focus on their core businesses. Zalaris offers cloud-based HR and payroll for more than 700 000 employees in 27 countries, with roots back to 2000. Zalaris is listed on the Oslo Stock Exchange with ticker code: ZAHL and is headquartered in Oslo, Norway.

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