Growens (GROW) Q2 2025 earnings summary

Executive summary

• Consolidated revenues for H1 2025 were EUR 36.2 million, down 2% year-over-year, mainly due to lower Agile Telecom revenues and absence of prior year extraordinary items, reflecting a period of transition and strategic investments.

• SaaS revenues grew 20%, now representing 19% of total, while CPaaS declined 3.6% and accounts for 80% of total revenues.

• EBITDA was negative EUR 0.2 million, improved from -EUR 0.7 million year-over-year; net loss for the period was EUR 2.4 million.

• Strategic focus on Beefree growth, innovation, and operational efficiency, with significant R&D and sales investments.

• Operates in SaaS (Beefree) and CPaaS (Agile Telecom), with 147 employees and presence in over 100 countries.

Financial highlights

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

• SaaS revenues grew by 20% to EUR 6.9 million, while CPaaS revenues declined 3.6% to EUR 28.7 million.

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

• Cash and equivalents exceeded EUR 15 million as of June 2025.

• Recurring revenues increased by 20% to EUR 6.9 million.

Outlook and guidance

• Beefree targets 20–23% CAGR in revenues through 2027, gross margin above 80% by 2026, and EBITDA break-even in 2027.

• Continued investment in AI-driven R&D and new features, with an AI agent in development to enhance product offerings.

• Agile Telecom to defend and improve margins via route optimization, value-added services, and expansion into RCS, Telegram, and WhatsApp Business.

• Beefree's ARR is on track with the updated 2025 plan, supporting the goal of positive cash flows by 2028.

• ARR for Beefree SDK grew 38% in H1 2025; focus shifting to SDK for medium-term acceleration.