Qt Group (QTCOM) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales declined 3.9% year-over-year to EUR 51.2 million, mainly due to tough comparables, adverse currency effects, and a challenging market environment.

• EBITA margin for Q2 was 22.7% (EUR 11.6 million), down 37.3% year-over-year, with net profit at EUR 6.7 million, a 49.6% decline.

• Distribution license revenue increased across all regions, but new customer and developer license sales were challenging, especially in the Americas and Europe.

• The company continues strategic investments, including the launch of Qt Bridges technology and a public cash offer for IAR Systems Group, aiming to expand the product portfolio and accelerate IAR's shift to subscription licenses.

• Full-year guidance remains unchanged despite market headwinds and short-term uncertainty.

Financial highlights

• Q2 2025 revenue was EUR 51.2 million, down 3.9% year-over-year; H1 2025 net sales were EUR 98.5 million, nearly flat year-over-year.

• Q2 2025 EBITA was EUR 11.6 million (22.7% margin); H1 2025 EBITA was EUR 20.1 million (20.4% margin), both down significantly from 2024.

• Q2 2025 EPS was EUR 0.27, down from EUR 0.53 last year; H1 2025 EPS was EUR 0.46.

• Cash and cash equivalents at end of June 2025 were EUR 91.5 million, with positive operating cash flow of EUR 28.9 million in Q2.

• Personnel count increased to 915, up 9.3% year-over-year.

Outlook and guidance

• Full-year 2025 net sales are expected to grow 10–20% year-over-year at comparable exchange rates.

• Operating profit margin (EBITA %) for 2025 is projected at 30–40%, likely at the lower end due to a weak first half.

• Management expects market conditions to improve gradually, with the fourth quarter anticipated to be the busiest.

• Guidance is fully organic and excludes any potential IAR revenue.

• Long-term growth prospects are supported by increased device displays, AI adoption, and quality assurance business.