Qt Group (QTCOM) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales grew 12.6% to EUR 77.1 million, with IAR acquisition contributing EUR 8.1 million; full-year net sales reached EUR 216.3 million, up 6.6% at comparable currencies and 3.5% year-over-year, with organic growth at 2.6%.

• Distribution license revenue surged 26.4%, driven by automotive, medical, and industrial manufacturing sectors.

• Profitability declined due to one-off IAR acquisition costs and higher personnel expenses, with Q4 EBITDA/EBITA margin at 35.6% (EUR 27.5 million) and full-year margin at 24.0%.

• Headcount increased to 1,136 at year-end, including 215 IAR employees.

• Challenging global economic conditions led to cautious customer purchasing behavior.

Financial highlights

• Q4 EBITA/EBITDA was EUR 27.5 million (35.6% margin); full-year EBITA was EUR 51.8 million (24.0% margin), down 27.2% year-over-year.

• Q4 EPS was EUR 0.73; full-year EPS was EUR 1.25, both down significantly year-over-year.

• ARR (excluding IAR and distribution licenses) grew 8.3% year-over-year to EUR 127.1 million.

• Personnel expenses rose 13.3% year-over-year, mainly due to IAR acquisition.

• Ending cash balance was EUR 40.1 million; interest-bearing debt increased to EUR 143.2 million, mainly from IAR financing.

Outlook and guidance

• 2026 guidance: net sales to increase at least 10% year-over-year at comparable exchange rates, with operating profit margin (EBITA %) at least 15%.

• IAR revenue expected to decline by low double digits in 2026 due to SaaS transition, with rebound expected in 2027.

• No decline expected in legacy Qt business for 2026.

• Distribution license revenue expected to be flat or slightly down in 2026 due to market volatility.

• Continued investment in R&D and AI-related product development, with efficiency improvements targeted post-acquisition.