Pexip (PEXIP) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw ARR reach USD 122.2 million, up 12% year-over-year, with revenue of NOK 265.6 million, up 16%, driven by 30% growth in Secure and Custom segments.

• EBITDA for Q3 was NOK 52.4 million, with a 12-month rolling EBITDA of NOK 310 million and a margin of 20% for the quarter, 25% on LTM basis.

• Free cash flow for Q3 was NOK 28.9 million, with NOK 303 million for the last 12 months, and cash and money market funds at NOK 526 million.

• New product launches included Connect for Google Meet hardware, and major projects for high-security US government clouds were initiated.

• Share buybacks totaled NOK 42.1 million in Q3, with NOK 100.1 million year-to-date and a dividend of NOK 259.8 million paid.

Financial highlights

• Q3 2025 revenue was NOK 265.6 million, up 16% year-over-year, with gross margin at 90% and adjusted EBITDA of NOK 52.4 million.

• Total ARR reached USD 122.2 million, up USD 3.2 million quarter-over-quarter and USD 12.7 million year-over-year.

• Profit after tax was NOK 25.6 million, and earnings per share were NOK 0.25.

• Operating cash flow in Q3 was NOK 44 million, up NOK 23 million year-over-year.

• Cash and money market funds at quarter end were NOK 526 million, with no material debt.

Outlook and guidance

• End Q4 2025 ARR guidance is USD 124–127 million, with near-term targets of above 10% ARR growth and above 20% EBITDA margin.

• Long-term ambition is to achieve Rule of 40 performance (ARR growth + EBITDA margin ≥ 40%), currently at 37.

• Price increases of around 5% are planned for 2024 and 2025, with similar expectations for 2026.

• Market for enterprise-grade video communication expected to grow, with increased focus on security and interoperability.