Exasol (EXL) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue rose 25.3% year-over-year to €12.4 million, driven by significant one-off hardware and service deals in focus verticals.

• Profitability improved, with EBITDA at €1.3 million and net income at €1.0 million, both up substantially from the prior year.

• Focus verticals delivered 14.6% ARR growth to €24.4 million, now representing 61% of total ARR, while total ARR declined 2.2% year-over-year due to non-focus verticals.

• Net liquidity increased by €8.2 million to €23.2 million, the highest since mid-2022, enhancing operational and strategic flexibility.

Financial highlights

• Q1 2025 EBITDA: €1.3 million, up from €0.3 million year-over-year.

• Net income: €1.0 million, reversing a loss in the prior year.

• Revenue increased 25.3% year-over-year to €12.4 million, mainly from a one-off €2.9 million hardware and services delivery.

• Cash and liquid assets at €23.2 million, up €8.2 million from year start.

• Overall ARR declined 2.2% year-over-year to €40.0 million, mainly due to a major non-focus vertical customer downsell.

Outlook and guidance

• Full-year 2025 guidance confirmed: mid-single-digit growth in ARR and revenue, EBITDA target of €3–4 million, at least 50% increase.

• ARR expected to decline in H1 2025 and recover in H2, with growth driven by focus verticals.

• Churn in non-focus verticals expected to normalize in 2026 as their share shrinks to 30% of the portfolio.