Sinch (SINCH) Q4 2025 earnings summary

Executive summary

• Achieved record-high profitability in 2025, with gross margin at 35% and adjusted EBITDA margin at 14%, both up year-over-year, reaching midterm margin targets ahead of schedule.

• Strong organic gross profit growth and margin expansion, especially in the Americas and API platform, offsetting headwinds in EMEA and APAC.

• Disciplined execution of strategy focused on growth reacceleration, margin expansion, and active capital allocation, including share buybacks totaling 8.8% of outstanding shares.

• Recognized as a market leader by Gartner, IDC, and ROCCO for CPaaS, validating global reach and platform leadership.

• Strong cash conversion at 84% in Q4 and robust free cash flow supported continued share buybacks.

Financial highlights

• Net sales for 2025 were SEK 27,080m, with gross profit at SEK 9,426m and adjusted EBITDA at SEK 3,605m.

• Organic gross profit grew 3% in Q4 and 4% for the full year, with gross margin expanding by two percentage points to 35%.

• Adjusted EBITDA margin reached 14% in Q4, up one percentage point year-over-year.

• Free cash flow for the last twelve months was SEK 1,449m, with a 40% cash conversion rate.

• Net debt/adjusted EBITDA increased to 1.6x, mainly due to share repurchases.

Outlook and guidance

• Expect continued solid growth in Americas and API business in 2026, with ongoing headwinds in EMEA and APAC.

• Midterm targets by end of 2027: 7–9% organic gross profit growth and 12–14% adjusted EBITDA margin, already at the top end of margin target.

• Cash conversion guidance remains at 40–50%.

• No new headwinds identified; focus remains on executing current strategy and leveraging partnerships and ecosystems for growth.

• Macroeconomic and geopolitical uncertainties, including new tariffs, may impact 2026.