Link Mobility Group (LINK) Q2 2025 earnings summary

Executive summary

• Celebrated 25th anniversary and expanded global presence with the acquisition of SMSPortal in South Africa, lifting pro forma adjusted EBITDA to NOK 1.1 billion and establishing a leading position outside Europe.

• Pro forma gross profit grew 7% year-over-year to NOK 501 million, with margin expansion driven by high-margin conversational solutions and CPaaS, and record NOK 50 million in new contract wins, over half from CPaaS.

• Record-high new contract wins in Q2, with CPaaS contracts exceeding A2P for the first time and RCS contracts up fourfold, representing 24% of total contracts won.

• Additional acquisitions in the UK (The SMS Works and FireText) further strengthened the European footprint.

Financial highlights

• Q2 2025 reported revenue was NOK 1,758 million, down 3% year-over-year, mainly due to termination of low-value clients and high comparables.

• Reported gross profit increased 11% to NOK 422 million, with organic gross profit up 5% and gross margin expanding to 24.0%.

• Adjusted EBITDA grew 18% to NOK 212 million, with margin expanding to 12.1%.

• Non-recurring costs were NOK 47 million, mainly from M&A and option costs, impacting reported EBITDA.

• Net profit for the period was a loss of NOK 3 million, impacted by non-recurring items and negative net financials.

Outlook and guidance

• High single-digit organic gross profit growth targeted, with adjusted EBITDA growth expected to outpace gross profit growth due to scalability.

• Headwinds from reduced enterprise client spend expected to fade by year-end, with recovery in organic gross profit growth anticipated in 2026.

• Continued focus on accretive M&A, maintaining leverage policy of 2.0x–2.5x adjusted EBITDA.

• CapEx guidance for 2025 is NOK 180–190 million, with future levels expected between NOK 150–190 million.