Pexip (PEXIP) Q2 2025 earnings summary

Executive summary

• ARR reached USD 119.0 million at Q2 2025, up 11% year-over-year and USD 3.5 million quarter-over-quarter, led by Secure and Custom segment growth of 27%.

• Q2 2025 revenue was NOK 281 million, up 6% year-over-year, with EBITDA at NOK 57 million and a 20% margin.

• Free cash flow for the last twelve months was NOK 281 million, with a strong cash position of NOK 544 million and no material interest-bearing debt.

• Secure and Custom Spaces led growth, with strong wins in defense, healthcare, and government sectors.

• Renewed a key multi-year commercial partnership in Connected Spaces, expected to boost long-term revenue and margins.

Financial highlights

• Quarterly revenue rose to NOK 281 million, a 6% increase year-over-year; H1 2025 revenue up 13%.

• EBITDA margin improved to 20% for Q2 2025, up from 12–14% a year ago, and 23% on a 12-month basis.

• Gross margin increased to 93% in Q2 2025, aided by one-time cloud vendor rebates and efficiency gains.

• Profit before tax was NOK 56 million, up NOK 44 million from Q2 last year; profit after tax for Q2 2025 was NOK 43.9 million.

• Distributed NOK 318 million to shareholders in Q2 via dividends and share buybacks, totaling NOK 360 million year-to-date.

Outlook and guidance

• Q3 2025 ARR expected to reach USD 120–123 million, with a temporary negative USD 1 million ARR effect from a new partnership pricing model.

• Targeting consistent ARR growth above 10% and EBITDA margin above 20% in the near term.

• Long-term ambition to achieve Rule of 40 performance (ARR growth + EBITDA margin), currently at 34%.

• Positive market trends expected to continue, driven by demand for secure, private, and interoperable video solutions.