Axactor (ACR) Q1 2025 earnings summary

Executive summary

• Collection performance reached 101% in Q1 2025, supporting updated forecasts and reflecting strong operational execution.

• Gross revenue was EUR 77.4 million, up 7% year-over-year when adjusted for the Spanish portfolio sale, despite a seasonally slow quarter.

• EBITDA increased 23% year-over-year to over EUR 32 million, with a 50% margin driven by cost reductions and margin expansion.

• Annualized return on equity hit 12%, an all-time high and aligned with 2026 targets.

• Significant growth in the 3PC segment, with 28% revenue increase and margin expansion across all active countries.

Financial highlights

• Gross revenue for Q1 was EUR 77.4 million, down 2% year-over-year, but up 7% excluding the Spanish portfolio sale.

• NPL segment gross revenue was EUR 62 million; 3PC segment revenue was EUR 15.2 million, up 28% year-over-year.

• Group total revenue was EUR 65 million, up 15% year-over-year.

• Net profit after tax was EUR 10.1 million, up from EUR 0.7 million year-over-year; EPS at EUR 0.033.

• Cash EBITDA was EUR 46.7 million, down 5% year-over-year, mainly due to the portfolio divestment.

Outlook and guidance

• Collection performance is expected to remain around 100% going forward.

• 3PC segment is projected to continue substantial growth with healthy margins, supported by a strong pipeline and recent contract wins.

• Full IT cost savings expected from Q3, reducing OpEx by EUR 700,000 per quarter.

• NPL investments guided at EUR 100–200 million for 2024–2026, with activity expected to pick up later in the year.

• Deleveraging strategy continues, with plans to refinance or repay 2026 bond maturity during 2025.