Lectra (LSS) Q2 2025 earnings summary

Executive summary

• Revenues for H1 2025 were €261.3M, stable year-over-year, with Q2 revenues down 4% compared to Q2 2024, reflecting a slowdown from mid-March and customer caution due to tariff uncertainty.

• Recurring revenues comprised 73% of H1 revenues, with SaaS subscriptions up 13% year-over-year, and ARR reaching €90.9M as of June 30, 2025.

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

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

• Annual objectives set in February are no longer relevant due to ongoing uncertainty; focus remains on SaaS growth and strategic flexibility.

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); H1 EBITDA: €40.4M (-4%), margin 15.4% (-0.6pt).

• Gross margin rate improved to 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

• No significant improvement in activity expected; economic and political uncertainty persists, leading to continued customer caution.

• Annual objectives announced in February 2025 are no longer relevant; company remains focused on SaaS strategy and leveraging strong fundamentals.