Nemetschek (NEM) Q1 2025 earnings summary

Executive summary

• Achieved strong double-digit revenue growth of 26.3% year-over-year in Q1 2025, driven by recurring revenue from subscription and SaaS models, with new record levels in key subscription KPIs and robust GoCanvas integration.

• Underlying profitability remained strong, with adjusted EBITDA margin at 31.4%, despite a non-operating effect from the insolvency of a payment and service provider impacting results.

• Internationalization efforts led to very strong double-digit growth in Asia-Pacific and the Americas, offsetting softness in the German and European construction markets.

• Strategic progress includes accelerated subscription transition, successful GoCanvas integration, and additional technology acquisitions.

• Full-year 2025 outlook confirmed, with expectations of above-market growth and strong shareholder returns.

Financial highlights

• Revenues rose 26.3% year-over-year to €282.8m, with organic ARR growth of 30.8% and subscription/SaaS revenues up 83.6% (68.2% organic).

• EBITDA increased 18.2% to €80.7m; adjusted EBITDA margin at 31.4% (reported 28.5%) due to a non-operating effect.

• Net income grew 5.5% to €44.9m; adjusted EPS €0.45 (+22.0%).

• Free cash flow before M&A rose 69% to nearly €139m; cash and cash equivalents at €264.0m.

• Recurring revenues accounted for 92% of total revenue, a record high.

Outlook and guidance

• Full-year 2025 guidance confirmed: currency-adjusted revenue growth of 17–19%, including GoCanvas contribution.

• EBITDA margin for 2025 expected around 31%, including the dilutive effect of GoCanvas.

• The impact of the payment provider insolvency is expected to be lower in Q2 and not present in the second half; guidance already anticipates this effect.

• Forecasts assume no significant deterioration in global or sector-specific conditions.