Lectra (LSS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached €134.4 million, up 4% year-over-year at actual exchange rates, reflecting a business slowdown due to an unprecedented macroeconomic and geopolitical environment.

• EBITDA before non-recurring items was stable at €21.1 million, with a margin of 15.7%.

• Net income declined 13% year-over-year to €5.8 million.

• Free cash flow before non-recurring items remained high at €17.7 million, though below the record €22.0 million in Q1 2024.

Financial highlights

• Annual Recurring Revenue (ARR) as of March 31, 2025, was €90.3 million, up 3% at constant exchange rates from year-end 2024.

• Shareholders' equity stood at €368.8 million, and net financial debt was reduced to €4.6 million.

• EBITDA margin before non-recurring items decreased by 0.6 points to 15.7%.

Outlook and guidance

• Management considers it premature to update the 2025 annual forecast due to ongoing economic and policy uncertainty.

• The company maintains its long-term strategic roadmap for 2023-2025, focusing on Industry 4.0 and SaaS growth.