CompuGroup Medical (COP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 1% year-over-year to €286 million, with recurring revenues up 2% to €218 million, now 76% of total revenues.

• Organic revenue growth was -0.5%, reflecting a slow start and lower one-time revenues.

• Adjusted EBITDA declined 16% to €51 million, with margin down to 18% from 21% year-over-year, due to increased investments in innovation and operational support.

• Adjusted EPS was €0.35, down from €0.47 in the prior year quarter.

• Free cash flow improved 32% to €78 million, driven by better working capital management and lower tax/restructuring payments.

Financial highlights

• Group revenues reached €286.2 million in Q1 2025, compared to €284.6 million in Q1 2024.

• Recurring revenues for the group increased to €218 million, with recurring share at 76%.

• Adjusted EBITDA was €51.1 million, down from €60.7 million year-over-year.

• Net income adjusted was €18.6 million, compared to €24.3 million in Q1 2024.

• Reported EPS (diluted) was €0.21, down from €0.36 in the prior year.

Outlook and guidance

• Full-year 2025 guidance confirmed: organic revenue growth expected in the low to mid-single-digit percentage range.

• Recurring revenues anticipated to continue positive development with slight year-over-year growth.

• Adjusted EBITDA expected to return to growth, with at least slight organic growth in each segment.

• Revenue and cost ramp expected to be backloaded, with improvement anticipated in subsequent quarters.