LightOn (ALTAI) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 increased by 15%, driven by a fivefold rise in Paradigm license sales and expanding partnerships, with a focus on enterprise AI adoption, sovereignty, and on-premise solutions, especially in Europe and the Middle East.

• Major updates to the Paradigm platform included advanced agentic capabilities, Visual RAG integration, and open-source model launches, enhancing document interaction and product differentiation.

• Strategic partnerships with Orange Business, HPE, Bearing Point, Silan, and participation in OpenEuroLLM consortium to expand reach and address verticals like defense, finance, and public sector.

• Notable client wins include Europrop, LDPAM, ENS Paris-Saclay, Soderen, and LBP AM, reflecting diverse sector adoption.

• Governance change: Laurent Daudet appointed president of a new Strategic Council, stepping down from operational roles but remaining a significant long-term shareholder.

Financial highlights

• H1 2025 revenue reached €709k, up 15% year-over-year, mainly from France, with Paradigm license sales growing fivefold to €655k.

• Other operating income totaled €1.8M, including €1.4M capitalized development and €400k in grants.

• Personnel expenses rose to €3.03M, up 88% year-over-year, driven by R&D and commercial team expansion.

• Operating loss widened to €3.86M, net loss at €3.68M, and gross margin fell to 15% from 37% due to pilot phases and higher infrastructure costs.

• Net cash position at €8.8M as of June 30, 2025, down €3.1M from December 2024.

Outlook and guidance

• ARR at June 30, 2025 was €1.23M, rising to €1.51M by September after new contracts.

• Year-end 2025 ARR expected between €3M and €4M, a 156% to 241% increase over December 2024, though below the initial €6M target.

• 2026 targets: positive EBITDA and free cash flow; €40M revenue goal set for 2027.

• Focus on accelerating commercial deployment, simplifying offers, and international expansion, especially in Europe and the Middle East.