CTOS Digital (CTOS) Q3 2025 earnings summary

Executive summary

• 3Q FY2025 revenue increased 4% year-over-year and 5% quarter-over-quarter to RM83 million, with normalised PATAMI up 14% QoQ to RM25 million.

• Revenue for the nine months ended 30 September 2025 increased by 4.4% year-over-year to RM238.1 million, while profit after tax declined by 18.4% to RM60.0 million due to higher operational expenses.

• Associates contributed RM8.2 million in 3Q 2025; Juris Tech showed YoY and QoQ improvements, while others are on track for full-year targets.

• Group CFO appointed effective 13 Oct 2025, with other key management changes progressing as planned.

• Sequentially, Q3 revenue rose 5.1% and profit before tax increased 15.2% from the previous quarter, driven by higher revenue and improved cost management.

Financial highlights

• Revenue for 3Q 2025 was RM83.0 million, up from RM79.0 million in 2Q 2025 (+5% QoQ).

• Gross profit for 3Q 2025 was RM55.7 million, with a stable margin QoQ.

• Gross profit for the nine months was RM161.9 million, down 1.8% year-over-year.

• Normalised PATAMI for 3Q 2025 was RM25.0 million, a 14% increase QoQ.

• Profit before tax for the period was RM63.9 million, a 19.3% decrease year-over-year.

Outlook and guidance

• On track to realise full benefits of cost optimisations by 4Q 2025.

• Recurring revenue remains above 90%, supporting predictable earnings.

• Internal management targets for FY2025: revenue RM315m–325m, EBITDA RM110m–120m, normalised PATAMI RM85m–90m.

• Management remains cautiously optimistic for 2025, focusing on digital and analytical solutions, customer acquisition, and international expansion.

• The international segment is expected to continue contributing positively, with efforts to enhance offerings and pursue synergistic partnerships and acquisitions.