Hightech Payment Systems (HPS) H1 2025 earnings summary

Executive summary

• Achieved 16.4% year-on-year revenue growth in H1 2025 to 672.5 M MAD, with adjusted revenue growth of 25.7% before FX impact.

• Record backlog reached MAD 1.3 billion by June, up 46% from the start of the year, and 85% higher by August, supporting future growth.

• SaaS transition and FX headwinds temporarily pressured margins, but ramp-up is expected to drive profitability, especially in Canada and Australia.

• Divestment of the low-margin/loss-making testing business to focus on core payment activities, expected to improve group margin and growth.

• Full-year guidance reaffirmed for 20%+ revenue and 30%+ EBITDA growth for FY2025.

Financial highlights

• H1 2025 reported revenue: MAD 672.5 million (+16.4% YoY); adjusted revenue: MAD 725 million (+25.7% YoY, FX neutral).

• EBITDA: MAD 69.8 million (margin 10.4%), down 35% YoY, mainly due to SaaS transition and FX impact.

• Net profit turned negative in H1 2025 due to 63 MMAD of non-operational costs (FX, CR2 acquisition financing, goodwill amortization).

• Operating cash flow strong at +105 MMAD; cash position at end-June: MAD 280 million (+37% YoY).

Outlook and guidance

• FY2025 guidance: revenue growth above 20%, EBITDA growth above 30%, with EBITDA expected to triple in H2 vs. H1.

• Majority of H2 revenues secured in backlog; SaaS and On-Premise ramp-up to drive profitability.

• Organic growth expected at 12%-17% annually in coming years, supported by strong backlog and new contract wins.

• 2027 targets remain on track, with recurring revenue share expected to rise.