Nemetschek (NEM) Q3 2025 earnings summary

Executive summary

• Q3 and nine-month 2025 results showed robust growth, led by strong performances in the Build and Design segments, with continued momentum in subscriptions and SaaS transitions, now representing over 92% of total revenues.

• AI innovation and integration, with significant investments, new features, and strategic partnerships, are central to the growth strategy.

• Profitability remained high despite a non-operating loss from a service provider insolvency.

• Strong international performance, with foreign revenues up 27.1% and accounting for 83.7% of total.

• The company confirms its increased guidance for 2025, targeting the upper end of 20–22% currency-adjusted revenue growth.

Financial highlights

• Q3 2025 revenues rose 15.8% year-over-year (20% FX-adjusted) to €293.1m; ARR up 21.9% to €1,076.7m.

• Nine-month revenue reached €866.0m (+22.9% reported, +25% FX-adjusted); recurring revenue up 61.3% to €614.7m.

• EBITDA for Q3 increased 21.9% to €95.2m (margin 32.5%); nine-month EBITDA rose 28.4% to €264.3m (margin 30.5%).

• EPS rose 40.7% in Q3 and 23.3% for nine months, reaching €1.32.

• Free cash flow before M&A up 44.5% year-over-year to €284.3m.

Outlook and guidance

• 2025 guidance confirmed: 20–22% currency-adjusted revenue growth, targeting upper end, with ~400–450bps M&A contribution from GoCanvas.

• EBITDA margin expected around 31%, including dilution from GoCanvas and extraordinary non-operating effects.

• Guidance assumes stable macroeconomic and industry conditions.

• Mid-teens average organic revenue growth expected in coming years.