Lectra (LSS) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues declined 8% year-over-year to €121.8m, with recurring revenues up 2% and SaaS subscriptions up 13% like-for-like.

• EBITDA before non-recurring items fell 13% like-for-like to €21.2m in Q3, with a margin of 17.4%; net income dropped 29% to €7.2m.

• For the first nine months, revenues were €383.1m (down 2% like-for-like), recurring revenues made up 75% of total, and SaaS subscriptions grew 13%.

• ARR reached €92.7m, up 9% like-for-like, reflecting strong SaaS momentum.

• The business model remains resilient, with a security ratio of 96% and strong fundamentals despite a challenging macroeconomic and geopolitical environment.

Financial highlights

• Gross margin for Q3 rose to 73.1% (+2.0 pts YoY); for nine months, gross margin rate was 72.9%, up 1.3 pts.

• EBITDA before non-recurring items for nine months was €61.6m (down 8%), with a margin of 16.1%.

• Net income for nine months was €18.3m, down 14% year-over-year.

• Free cash flow before non-recurring items was €36.9m; after a €3.1m non-recurring outflow, free cash flow was €33.7m.

• Shareholders’ equity stood at €346.9m, net debt at €38.1m as of September 30, 2025.

Outlook and guidance

• No specific annual targets reiterated due to ongoing macroeconomic and geopolitical uncertainty.

• Focus remains on SaaS transformation, cost control, and leveraging strong fundamentals for future growth.

• The 2026-2028 strategic roadmap will be presented in February 2026.

• Growth in recurring revenues and SaaS expected to continue, with further integration of recent acquisitions.

• Transformation and opportunity capture prioritized in a normalized environment.