Lectra (LSS) Q2 2025 earnings summary

Executive summary

• H1 2025 revenues were €261.3M, stable year-over-year, with recurring revenues up 2% and non-recurring revenues down 7%.

• SaaS subscriptions grew 13% year-over-year, with ARR reaching €90.9M as of June 30, 2025.

• Net income for H1 2025 was €11.1M, unchanged from H1 2024; Q2 net income rose 20% year-over-year due to lower tax expense.

• The business faced significant headwinds from global economic uncertainty and US tariff announcements, leading to a 27% drop in new systems orders in Q2.

• Strong balance sheet with €343.8M in equity and net debt of €34.1M after dividend and acquisition payments.

Financial highlights

• Q2 2025 revenues: €126.8M (-4% actual, -2% like-for-like); H1 2025: €261.3M (0% actual, -1% like-for-like).

• Q2 EBITDA before non-recurring items: €19.2M (-9% actual, -3% like-for-like); margin 15.2%. H1 EBITDA: €40.4M (-4%), margin 15.4%.

• Gross margin rate improved to 72.8% in Q2 and 72.7% in H1, up 1pt year-over-year.

• Free cash flow before non-recurring items for H1: €33.0M, supported by strong working capital management.

• Share price at June 30, 2025: €23.90, down 8.1% from December 2024; market cap €0.91B.

Outlook and guidance

• Annual objectives set in February 2025 are no longer relevant due to ongoing economic and political uncertainty.

• The company remains focused on SaaS growth and strategic flexibility, maintaining a cautious approach.