Loyal Solutions (LOYAL) H2 2025 earnings summary

Executive summary

• Annual recurring revenue (ARR) grew 32% year-over-year to DKK 39,990, driven by strong client program growth.

• Top line revenue increased 4.6% in H2 but declined 2.4% for the full year due to delayed client signings and less ad-hoc work.

• Staff expenses were reduced by 5.2% despite ARR growth, reflecting operational efficiency.

• EBITDA for the year was TDKK -6,742, better than forecasted but below budget and last year.

• Cash receipts increased 8% year-over-year, with a year-end cash balance of TDKK 4,033.

Financial highlights

• Full-year revenue was TDKK 39,124, 18% below budget and 2.3% below forecast.

• Operating expenses for the year were TDKK 27,836, 6.8% below budget.

• Net income per share for the year was DKK -1.06, compared to DKK -0.91 last year.

• Operating profit for the year was TDKK -10,086, compared to TDKK -8,684 last year.

• Net cash flow excluding loans improved 14% year-over-year, with a loan of TDKK 3,093 secured from major shareholders.

Outlook and guidance

• Revenue for the next fiscal year is projected to grow 42% to TDKK 55,646.

• ARR is expected to grow 34% to TDKK 53,776.

• EBITDA is forecasted at TDKK +6,894, with a net result of TDKK +3,191.

• Continued focus on cash management, efficiency, and scaling with new client contracts.