Growens (GROW) Q2 2025 earnings summary

Executive summary

• The group transitioned to focus on Beefree (SaaS for content design) and Agile Telecom (CPaaS for A2P messaging) after major divestments in 2023, raising over €78m.

• 1H 2025 consolidated revenues were €36.2M, down 2% year-over-year, reflecting strategic investments and transition.

• SaaS revenues grew 20% to €6.9M, now 19% of total, while CPaaS declined 3.6% to €28.7M, accounting for 80% of total.

• Beefree business unit saw 22% revenue growth to €7M, with ARR at $16.9M as of June 2025.

• The group paid its first scrip dividend, demonstrating financial strength and commitment to shareholder returns.

Financial highlights

• Gross profit rose 18% year-over-year to €9.5M, with gross margin at 26.2%.

• EBITDA loss narrowed to -€0.2M in 1H 2025, with Beefree EBITDA at -€1.4M.

• Net earnings for H1 2025 were negative €2.4M after taxes.

• Net financial position as of June 2025 was €8.1M cash, down from €13M at December 2024.

• Cash and equivalents exceeded €15M as of June 2025.

Outlook and guidance

• Beefree targets a 20-23% revenue CAGR for 2024-2027, with ARR expected to reach $21-23M by December 2026.

• Beefree aims for EBITDA break-even in 2027 and cash flow break-even in 2028, with a steady-state gross margin above 80%.

• Strategic focus on organic growth, targeted M&A, and €15M investment planned for 2024-2026.

• Continued investment in AI-driven R&D to capitalize on new market opportunities.

• Agile Telecom expected to continue margin improvement despite ongoing volume declines and industry changes.