Link Mobility Group (LINK) Q4 2025 earnings summary

Executive summary

• Reported revenue increased 7% year-on-year to NOK 1,980 million in Q4 2025, driven by acquisitions, while organic revenue declined 5% due to lower volumes from large clients and product mix shifts.

• Adjusted EBITDA grew 1% year-on-year to NOK 216 million, with acquired entities offsetting a 15% organic decline; leverage rose modestly to 1.5x adjusted EBITDA.

• Gross profit increased 6% year-on-year including M&A, but declined 4% organically; gross margin improved by 0.4pp due to favorable product mix.

• Net profit for Q4 2025 was NOK 31 million, impacted by non-recurring M&A and restructuring costs; cash flow from operations was NOK 236 million in Q4 and NOK 701 million for the full year.

• Three acquisitions were completed in 2025, including SMSPortal, SMS Works, and FireText, strengthening presence in the UK and South Africa; the US subsidiary was divested.

Financial highlights

• Reported revenue: NOK 1,980 million (+7% YoY); organic revenue: -5% YoY.

• Gross profit: NOK 461 million (+6% YoY with M&A, -4% organic); gross margin: 23.3%.

• Adjusted EBITDA: NOK 216 million (+1% YoY); margin: 10.9%.

• Net profit: NOK 31 million; cash position: NOK 1.0 billion at year-end; leverage at 1.5x adjusted EBITDA.

• CapEx was elevated in 2025 due to CPaaS platform investments, expected to decrease by 10% in 2026.

Outlook and guidance

• Gradual improvement in organic growth is expected in 2026 as comparables ease and temporary headwinds subside.

• Medium-term ambition is high single-digit gross profit growth and faster adjusted EBITDA growth, supported by scalable business and CPaaS momentum.

• Accretive M&A remains a priority, with a strong pipeline and expectation of at least one acquisition in 2026.

• CapEx levels to decrease in 2026, and shareholder distributions expected to increase over time.