Arribatec Group (ARR) Q3 2025 earnings summary

Executive summary

• Achieved record organic revenue growth of 20% year-over-year in Q3 2025, reaching NOK 137 million, with significant margin improvements and a return to profitability after prior losses.

• Recurring revenue reached NOK 65.2 million, representing 48% of total revenue, driven by proprietary IP, partner solutions, and subscription-based models.

• All business segments—Business Services, Cloud Services, and EA & BPM—delivered positive EBITDA/EBITA, with Business Services showing the most substantial margin expansion.

• Accelerated ERP-to-cloud transition and launched a sovereign cloud solution in partnership with Itseva, targeting public sector and regulated industries.

• Discontinued Hospitality and Marine segments in March 2025, with gains from their sale reflected in Q3 results.

Financial highlights

• Q3 2025 revenue reached NOK 137 million, up from NOK 114.2 million in Q3 2024, with trailing 12-month revenue at NOK 560.4 million, up 14%.

• EBITA improved to NOK 14.6 million (10.7% margin), reversing a NOK -11.1 million loss last year; net profit was NOK 8.1 million, up from a NOK -14.2 million loss.

• Recurring revenue was NOK 65.2 million, up NOK 8 million year-over-year, now 48% of total revenue.

• Cash position at quarter end was NOK 60.5 million, up from NOK 47 million in Q2, aided by NOK 17.6 million from warrant exercises.

• No interest-bearing debt; full revolving credit facility remains undrawn.

Outlook and guidance

• Q4 is expected to be the strongest quarter of the year, with improved free cash flow and EBITDA anticipated.

• Continued strong momentum expected in Business Services, especially cloud migration and proprietary IP products, into 2026.

• Cloud segment to benefit from sovereign cloud platform launch and growing demand for secure, local data solutions.

• EA & BPM to focus on broadening client base and leveraging AI-related solutions.

• Pipeline remains robust, with NOK 1,100 million gross and NOK 421 million weighted.