Link Mobility Group (LINK) Q3 2025 earnings summary

Executive summary

• Achieved robust growth and margin expansion in Q3 2025, introducing a shareholder return policy targeting NOK 300 million distribution for 2025, while prioritizing accretive M&A opportunities.

• Pro forma gross profit grew 6% year-over-year and adjusted EBITDA rose 9%, driven by high-margin conversational solutions and a scalable business model, despite some clients reducing messaging spend.

• Closed and consolidated acquisitions contributed significantly to revenue and profit, with a robust pipeline of further M&A targets.

• Order intake reached a record NOK 43 million, up 53% year-over-year, despite headwinds from reduced messaging spend by select large clients.

• Europe's leading digital messaging provider, serving 60,000 customers and processing 43 billion messages annually, with a strong local presence across 18 European markets and select international regions.

Financial highlights

• Reported Q3 2025 revenue was NOK 1,694 million, up 2% year-over-year, with organic revenue down 7% due to global messaging segment headwinds.

• Gross profit reached NOK 401 million, up 12% year-over-year, with organic growth of 5% and group gross margin expanding to 23.7%.

• Adjusted EBITDA was NOK 195 million, up 17% year-over-year, with margin improving to 11.5%.

• Reported EBITDA after non-recurring items was NOK 171 million, impacted by M&A costs.

• Net profit for the quarter was NOK 17 million, with non-recurring items totaling NOK 24 million, mainly related to M&A and restructuring.

• Cash and cash equivalents at NOK 1.85 billion; net interest-bearing debt at NOK 809 million, leverage ratio 1x adjusted EBITDA.

Outlook and guidance

• Targeting ordinary shareholder distribution of NOK 300 million (~NOK 1/share) for 2025, with flexibility between dividends and buybacks.

• Medium-term ambition remains high single-digit gross profit growth, with adjusted EBITDA expected to grow faster due to scalability.

• Temporary 2-3 percentage point headwind from large enterprise clients moderating spend expected to fade by end-2025.

• RCS and WhatsApp adoption, especially in the Nordics, expected to drive margin accretion and growth from 2026.

• CapEx for full year 2025 expected around NOK 190 million.