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 2025 net sales reached EUR 216.3 million, up 6.6% at comparable currencies and 3.5% year-over-year; organic growth was 2.6%.

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

• Profitability declined due to one-off acquisition costs and higher personnel expenses; full-year EBITA margin was 24.0%.

• IAR acquisition increased headcount to 1,100–1,136 at year-end, with 215 from IAR.

Financial highlights

• Q4 EBITA was EUR 27.5 million (35.6% margin); full-year EBITA was EUR 51.8 million (24.0% margin).

• Q4 EPS was EUR 0.73; full-year EPS was EUR 1.25.

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

• Equity ratio dropped from 81% to 50.8% due to IAR acquisition financing.

• Ending cash balance was EUR 40.1 million, down from EUR 64.9 million a year earlier.

Outlook and guidance

• 2026 guidance: net sales to increase at least 10% year-over-year at comparable exchange rates; operating profit margin at least 15%.

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

• No decline expected in legacy Qt business for 2026.

• Distribution license revenue for 2026 expected to be flat or slightly down from 2025.

• Market environment remains uncertain in the short term, but long-term growth prospects are positive.