Itera (ITERA) Q1 2025 earnings summary

Executive summary

• Achieved sequential revenue and margin growth, with Q1 2025 revenue at NOK 232 million (1% year-over-year growth) and EBIT margin improving to 9.1% from 8.4% last year, supported by better utilization and a strong sales pipeline.

• Operational cash flow for the last 12 months increased to NOK 76 million, up from NOK 24 million in the previous quarter, with EBITDA-to-cash conversion at 92%.

• Employee count at quarter-end was 707, down 4% year-over-year, reflecting rightsizing but expected to rise as growth opportunities emerge.

• Strategic focus on AI adoption, cloud transformation, and the "Enter Ukraine with Itera" initiative, including partnerships in energy and defense sectors.

• Board proposes an ordinary dividend of NOK 0.20 per share for 2024, with potential for a supplementary dividend.

Financial highlights

• Q1 2025 revenue was NOK 232 million, up 1% year-over-year; EBIT margin at 9.1% (up 0.7 pts), and EBITDA margin at 12.6% (up 0.4 pts).

• Earnings per share at NOK 0.18, up 3% year-over-year; EBITDA per share at NOK 0.36, up 4%.

• Cash flow from operations was negative NOK 5 million for the quarter, but rolling 12-month operational cash flow was NOK 76 million.

• Revenue per FTE increased by 6% despite a 4% reduction in headcount.

• Subscription revenues grew 5% to NOK 20 million; other revenue reached NOK 11 million.

Outlook and guidance

• Market demand remains soft but is gradually improving, with digital transformation and AI driving growth.

• Focus on profitable growth, cash generation, and leveraging new offices and Ukraine-related opportunities.

• Core strategy centers on long-term customer relationships and distributed delivery across Nordics and Central/Eastern Europe.