GFT Technologies (GFT) Q1 2025 earnings summary

Executive summary

• Achieved 4% revenue growth to EUR 222 million in Q1 2025, with 7% growth in local currencies, driven by strong performance in the Americas and insurance sector, despite FX headwinds and macroeconomic volatility.

• Major new contracts in the USA, Canada, Dubai, and APAC, including a $20 million deal with a top US bank and a $50 million deal with a tier one asset manager.

• AI-centric strategy and successful launch of GFT Impact generative AI product, with major AI project win in robotics.

• Integration of largest acquisition, Software Solutions, and Sophos in Latin America completed, capturing material synergies.

• Structural challenges in UK and Software Solutions segments addressed with transformation initiatives.

Financial highlights

• Q1 2025 revenue: EUR 221.9 million (+4% year-over-year); organic growth +5%, FX effects -3%, M&A +2%.

• Adjusted EBIT down 18% year-over-year to EUR 15.1 million; margin declined to 6.8% from 8.6% last year.

• EBITDA down 27% to EUR 16 million; net income EUR 7.1 million (-33%); EPS EUR 0.27 (-33%).

• Order backlog up 14% year-over-year to EUR 462.3 million, driven by long-term US deals.

• Net cash at end of Q1: EUR -51.1 million, after loan repayments.

Outlook and guidance

• 2025 revenue guidance confirmed at EUR 913–930 million (+7% year-over-year); adjusted EBIT guidance updated to EUR 75 million (8.1% margin) under new calculation.

• Free cash flow expected at EUR 45 million; net debt/EBITDA targeted at 0.2.

• Utilization rate guidance increased to 91% for 2025, lifted by Sophos integration.

• Long-term ambition: EUR 1.5 billion revenue and 9.5% adjusted EBIT margin by 2029.