GFT Technologies (GFT) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue grew 3% year-over-year to €441.5 million, with strong expansion in the Americas and APAC offsetting European weakness; adjusted EBIT margin was 6.8% despite FX headwinds and underperformance in the UK and Software Solutions.

• Strategic turnaround initiatives are underway in the UK and Software Solutions, including leadership changes, capacity adjustments, and revised go-to-market strategies.

• Acquisition of Mega Work in Brazil expands into SAP markets, diversifies verticals, and is expected to add €4M in revenue and €0.9M in adjusted EBIT at a 22% margin in 2025.

• Major contract wins in the US (core banking), Canada (insurance), Brazil (cloud/GenAI), and Germany (AI/Neurorobotics), with significant progress in AI and software, including global expansion of GenAI product Wynxx.

• 2025 and 2026 are expected to be transition years, with margin improvements in 2026 and a return to revenue growth in 2027.

Financial highlights

• H1 2025 revenue was €441.5 million (+3% year-over-year), with Americas, UK & APAC up 8% and Continental Europe down 4%.

• Adjusted EBIT for H1 2025 was €30.1 million (6.8% margin), stable versus H1 2024; EBITDA was €30.9 million (-31%), and net income was €13.5 million (-37%).

• Q2 2025 revenue was €219.6 million, up 1% year-over-year; adjusted EBIT in Q2 was €15.05 million, up 30% year-over-year.

• FX headwinds reduced 2025 guidance by €20 million in revenue and €3 million in adjusted EBIT.

• Order backlog up 1% year-over-year, or 4% in constant currency.

Outlook and guidance

• 2025 revenue guidance lowered to €850–885 million (2% growth, 5% in constant currency); adjusted EBIT guidance at €65 million (7.3% margin), EBT at €45 million.

• Free cash flow adjusted for 2025 expected at ~€35 million; net debt/EBITDA ~0.8; utilization expected at ~91%.

• Margin improvements expected in 2026, with revenue growth resuming in 2027; 2025–2026 are transition years due to turnaround initiatives.

• Positive business trend expected in H2 2025, but only certain markets show signs of momentum recovery.