Cherry (C3RY) Q3 2025 TU earnings summary

Executive summary

• Revenue for the first nine months of 2025 was €70.7m, down 16% year-over-year, with Q3 revenue up 9.3% year-over-year to €24.7m, driven by Peripherals growth despite market pressures.

• Adjusted EBITDA margin for 9M 2025 was -6.9%, deteriorating from -0.8% in the prior year, while Q3 margin improved to -10.6% from -13.7% in Q3 2024.

• Net loss for the first nine months widened to €20.4m from €13.8m in 2024.

• Cash burn was drastically reduced, with a year-to-date decrease of €0.3m and cash on hand at €7.5m as of September 30, 2025.

• Major milestones include strategic realignment approval, new CFO appointment, and TI-M provider approval for Digital Health.

Financial highlights

• 9M 2025 revenue declined across all divisions compared to the previous year.

• Q3 2025 revenue increased 9% sequentially, driven by Peripherals, while Digital Health & Solutions regained momentum.

• Adjusted EBITDA for 9M 2025 was €-4.9m, with margin at -6.9%.

• Gross profit II margin for Q3 2025 was 19.4%, down from 34.3% in Q3 2024; nine-month margin fell to 18.8% from 34.1%.

• Equity ratio stood at 43.2%, down from 46.1% at year-end 2024.

Outlook and guidance

• FY 2025 revenue forecast is €100m to €115m, with adjusted EBITDA margin expected between 0% and 2%, but guidance is at the lower end and margin likely to remain negative in high single digits.

• Digital Health & Solutions expected to shift from hardware to recurring software revenue, with SaaS projected to surpass terminal revenues by 2029.

• Peripherals business is being reshaped with targeted marketing and talent acquisition; EMEA recovery and APAC performance highlighted.

• Major shareholder committed up to €5.7m in new funding; restructuring aims for a more efficient cost structure in 2026.

• Material uncertainty remains regarding going concern, but restructuring is showing gradual effectiveness.