Pexip (PEXIP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NOK 348 million, up 19% year-over-year, with ARR at USD 115.5 million, up 10% year-over-year.

• Growth was led by Secure and Custom segment (ARR up 27% year-over-year), supported by strong demand in defense and public sector.

• EBITDA excluding other gains/losses was NOK 112.5 million, up from NOK 64.4 million; EBITDA margin rose to 33%.

• Announced a share buyback program of up to 2 million shares or NOK 100 million and a total dividend of NOK 260 million for 2025.

• Expanded partnerships, notably with Google for Meet hardware interoperability, and secured major wins with clients like Walmart and European public sector organizations.

Financial highlights

• Revenue for Q1 2025 was NOK 348 million, a 19% increase year-over-year; gross margin improved to 92%.

• Adjusted EBITDA was NOK 112.5 million (32% margin), up 75% year-over-year.

• Free cash flow for Q1 2025 was NOK 221 million, more than doubling year-over-year.

• Net profit for Q1 2025 was NOK 66.4 million, up from NOK 45.4 million in Q1 2024.

• Net cash position at quarter-end was NOK 830.5 million, with no material interest-bearing debt.

Outlook and guidance

• Q2 2025 ARR expected in the range of USD 117–120 million, up from USD 115.5 million at Q1 end.

• Near-term targets: above 10% ARR growth and above 20% EBITDA margin.

• Long-term ambition to achieve Rule of 40 performance (ARR growth + EBITDA margin ≥ 40%).

• Expects continued growth in enterprise-grade video communication, especially for secure and custom solutions.