EKINOPS (EKI) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was €117.7m, down 9% year-over-year, with Access business up 11% and Optical Transport down 30%.

• Gross margin improved to 54.8% (vs. 52.1% in 2023), and EBITDA margin rose to 15.3% (from 14.4%).

• Net income was a loss of €6.95m, compared to a profit of €3.63m in 2023.

• Free cash flow doubled to €10.9m, and net cash position increased to €29.5m.

• The company maintained strong operational efficiency and cash generation despite sector contraction and macroeconomic headwinds.

Financial highlights

• Revenue: €117.7m (–9% year-over-year).

• Gross margin: 54.8% (up from 52.1%).

• EBITDA: €18.0m (15.3% margin).

• Operating income: €6.45m; Operating loss after non-recurring items: €–4.99m.

• Net income: €–6.95m; EPS: €–0.26.

• Free cash flow: €10.9m; Operating cash flow: €20.8m.

• Net cash: €29.5m at year-end.

Outlook and guidance

• Targeting gradual revenue growth restoration in 2025, especially in the US.

• Bridge strategic plan aims for double-digit growth and 20% EBITDA margin by 2028.

• Over 30% of revenue expected from software and services by 2028, with at least 50% in ARR.

• Continued investment in DCI and SASE solutions, with no significant increase in R&D spending.