Seco (IOT) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2025 reached €98.4 million, up 3.2% year-over-year, with Q2 revenues of €51.2 million, a 9% sequential increase.

• Gross profit margin improved to 53.4%, exceeding guidance, and adjusted EBITDA reached €20.1 million, maintaining a margin above 20%.

• Clea software revenues contributed €12 million (12% of total revenues), with recurring revenues rising to 36% of Clea sales.

• Strong order intake and design wins at all-time highs, with a record number of strategic product launches and innovation milestones.

• R&D investments and strategic partnerships, including with Nayax Ltd., continued to drive innovation and compliance.

Financial highlights

• Total revenues reached €98.4 million, up 3.2% year-over-year, with edge computing revenue at €86.4 million.

• Adjusted EBITDA rose 27.3% to €20.1 million (20.5% margin), and adjusted net income nearly doubled to €7.3 million.

• Net profit for the period was €2.5 million, reversing a €3.0 million loss in H1 2024.

• Net financial debt increased to €59.8 million, with adjusted net financial debt at €50.3 million due to higher trade receivables.

• Gross margin and cost ratios improved due to reduced service, transport, and outsourcing costs.

Outlook and guidance

• Full-year revenue expected to exceed €200 million at constant FX, with gross margins above 50%.

• Acceleration in growth anticipated in H2 2025, with Q4 expected to be the strongest quarter.

• Over €20 million in additional revenue for 2026 already secured through new and existing clients.

• Growth to be supported by new Edge products, Clea software adoption, and ongoing partnerships with NXP, Google Cloud, Qualcomm, and Raspberry Pi.

• Market normalization and easing monetary policy in Europe are supporting a gradual recovery in hardware demand.