EKINOPS (EKI) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue reached €28.5 million, a 1% increase year-over-year, aligning with expectations despite a 20% decline in North America.

• Excluding North America, sales grew 7% year-over-year, with strong contributions from France and EMEA.

• Growth was driven by strong Access solutions sales in EMEA and France, while North America remained flat sequentially.

• Software & Services segment grew 17%, now representing 18% of total activity.

Financial highlights

• Q1 2025 revenue: €28.5 million, up 1% from Q1 2024.

• Access solutions sales increased 11% year-over-year, with a 19% sequential rise from Q4 2024.

• Optical Transport equipment sales declined 16% year-over-year due to overcapacity and cautious operator investments.

• EBITDA margin for 2024 was 15.3%, up from 14.4% in 2023.

• Software & Services revenue rose 17% year-over-year, now representing 18% of total revenue.

Outlook and guidance

• No formal guidance provided due to market uncertainty.

• Anticipates a rebound in internet traffic growth over the next 12 months, driven by AI, Cloud, and virtual/augmented reality applications.

• Gradual return to growth expected, especially in North America.

• New products from R&D investments expected in Q4 2025 and early 2026.

• Focus remains on telecom market recovery and executing the new strategic plan.