Exasol (EXL) Q2 2025 earnings summary

Executive summary

• Revenue grew 10.8% year-over-year to EUR 21.5 million in H1 2025, with EBITDA at EUR 2.0 million and net income at EUR 1.4 million, reflecting strong profitable growth.

• Strategic focus on regulated verticals (financial services, healthcare, utilities, public sector) led to 69% of ARR from these sectors, with 28% ARR growth in focus verticals.

• Major upsell and renewal with Finanz Informatik doubled ARR from this key customer, marking the largest contract in company history.

• Hardware and services contributed nearly EUR 2.9 million in H1 revenue, deepening customer relationships and supporting long-term growth.

• Net liquidity increased to EUR 22.2 million, supporting ongoing investments and operational flexibility.

Financial highlights

• ARR at EUR 38.7 million, down 2.8% year-over-year, mainly due to elevated churn in non-focus verticals, especially retail.

• EBITDA improved from EUR 0.7 million to EUR 2.0 million year-over-year; net income rose from EUR -0.3 million to EUR 1.4 million.

• Gross profit for H1 2025 was EUR 18.9 million, with recurring revenue at EUR 18.6 million and non-recurring revenue at EUR 2.9 million.

• Personnel expenses decreased by EUR 1.8 million year-over-year; total costs reduced by EUR 2.3 million.

• Net liquidity rose by EUR 7.2 million to EUR 22.2 million compared to end of Dec 2024.

Outlook and guidance

• Guidance maintained for mid-single-digit percentage growth in ARR and revenue for FY 2025.

• EBITDA guidance of EUR 3–4 million for the year, with profitability supported by recurring software and hardware/service deals.

• H2 expected to see lower churn and strong upsell momentum in focus sectors, targeting at least EUR 4–4.5 million net ARR addition.