GFT Technologies (GFT) Q2 2025 earnings summary

Executive summary

• Revenue grew 3% year-over-year to EUR 442 million in H1 2025, with strong expansion in the Americas and APAC offsetting European weakness.

• Adjusted EBIT/EBT remained stable at EUR 30 million (6.8% margin), but EBITDA and net income declined due to structural adjustments and market uncertainty.

• Strategic turnaround initiatives launched in the U.K. and Software Solutions segments due to underperformance.

• Megawork acquisition in Brazil marks entry into SAP software market, expected to add EUR 4 million revenue and EUR 0.9 million EBIT at 22% margin in 2025.

• Share buy-back program of up to EUR 15 million launched in April 2025, with 245,154 shares acquired by May 28, 2025.

Financial highlights

• H1 2025 revenue: EUR 441.5–442 million (+3% year-over-year); Americas, UK & APAC up 8%, Continental Europe down 4%.

• Adjusted EBIT/EBT: EUR 30–30.1 million (6.8% margin); EBITDA: EUR 30.9 million (-31% year-over-year); net income: EUR 13.5 million (-37%).

• Q2 2025 revenue: EUR 219.6 million (+1% year-over-year, +6% in constant currencies).

• Insurance segment revenue up 21% year-over-year.

• Cash and cash equivalents declined to EUR 58.3 million (from EUR 80.2 million at year-end 2024).

Outlook and guidance

• 2025 revenue guidance lowered to EUR 805–885 million (+2% year-over-year, +5% in constant currencies) due to FX headwinds and turnaround efforts.

• Adjusted EBIT/EBT guidance: EUR 65 million (7.3% margin); EBT to EUR 45 million.

• Free cash flow adj. for 2025 expected at EUR 35 million; net debt/EBITDA ~0.8.

• 2025–2026 seen as transition years for UK and Software Solutions, with margin improvement and growth targeted from 2027.

• Utilization expected at 91–92% for 2025.