Spir Group (SPIR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 20% year-over-year to NOK/MNOK 316, driven by strong real estate market activity, new revenue streams, and improved product offerings.

• Annual recurring revenue (ARR) reached NOK/MNOK 439, up 10% from Q1/March 2024.

• Adjusted EBITDA increased 51% to NOK/MNOK 52, with cash EBITDA more than tripling to NOK/MNOK 30.

• Net income was NOK/MNOK -9, impacted by lower financial income, higher depreciation/amortization, and a NOK 4 million non-cash impairment.

• Cash position improved to NOK/MNOK 93 at quarter-end, and net interest-bearing debt reduced to NOK/MNOK 582.

Financial highlights

• Gross profit rose 21% to NOK/MNOK 194, with gross margin up to 62%.

• Operating profit (EBIT) was NOK/MNOK 7, up from NOK/MNOK 1 in Q1 2024.

• Free cash flow increased to NOK/MNOK 138, and operational cash flow reached NOK/MNOK 164.

• Net interest-bearing debt reduced by NOK/MNOK 126 since end of 2024, with an equity ratio of 50%.

• Liquidity reserve of NOK/MNOK 100 and cash balance of NOK/MNOK 93.

Outlook and guidance

• Positive outlook for 2025, expecting continued growth in subscription-based revenues and software business, with strong demand for secure IT solutions.

• Capex for FY 2025 projected at NOK/MNOK 90–95, with focus on ROI, margin, and cost control.

• Transaction-based revenue growth expected to moderate after strong Q1; consulting revenues and public sector demand remain stable.

• Ongoing strategy to reduce net interest-bearing debt and maintain strict cost discipline.

• Continued focus on leveraging AI for product and operational enhancements.