Pexip (PEXIP) Q4 2025 earnings summary

Executive summary

• Annual recurring revenue (ARR) grew 16% year-over-year to USD 131 million, with Secure and Custom up 25% and Connected Spaces up 10%.

• Q4 2025 EBITDA was NOK 94.2 million, with a full-year EBITDA of NOK 316 million, a 53% year-over-year increase.

• Free cash flow for Q4 was NOK 71.9 million, and NOK 354 million for the year, up 80% year-over-year.

• Major wins in government, defense, healthcare, and technology sectors, including a Spanish municipality, Central European state IT provider, and a Southeast Asian Ministry of Defense.

• Launched Connect for Google Meet, enabling Google Meet hardware to join Teams meetings, resulting in nearly $1 million in new ARR and 7,000 rooms closed in Q4.

Financial highlights

• Full-year 2025 revenue increased 10% to NOK 1,228 million, with a 26% EBITDA margin and gross margin at 92%.

• EBIT margin crossed 20% for the first time, ending at 21%.

• Costs were slightly down year-over-year, with non-share-based salary expenses down NOK 11 million.

• Share-based compensation increased by NOK 9 million due to share price appreciation.

• Profit after tax for Q4 was NOK 102.2 million; full-year profit after tax was NOK 248.3 million.

Outlook and guidance

• Q1 2026 ARR expected in the range of USD 133–136 million, reflecting continued positive trends.

• Ambition to consistently deliver above Rule of 40 performance (ARR growth + EBITDA margin) and double-digit ARR growth.

• Dividend of NOK 4.0 per share recommended for FY 2025, up from NOK 2.5 last year, including an extraordinary dividend.

• Financial reporting to be consolidated in US dollars from Q1 2026.

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