SSH Communications Security (SSH1V) Q1 2025 earnings summary

Executive summary

• Net sales grew 7.9% year-over-year in Q1 2025 to EUR 5.4 million, with stable EBITDA at EUR 0.2 million despite increased regulatory and recruitment costs.

• Subscription ARR increased 12.9%, PrivX subscription sales rose 15%, and overall subscription sales up 11.4%.

• EBIT declined to EUR -1.1 million due to higher regulatory certification costs and a EUR 0.4 million R&D write-down.

• Strategic focus on enhancing solution competitiveness, expanding marketing and sales, especially in the U.S. and APAC, and celebrating 30 years in cybersecurity.

• Several new PrivX and Tectia deals closed, with portfolio improvements and new product launches in quantum-safe and OT security.

Financial highlights

• Net sales: EUR 5.4 million (+7.9% year-over-year); EBITDA: EUR 0.2 million (flat); EBIT: EUR -1.1 million (down from EUR -0.7 million); Net loss: EUR -1.4 million (EUR -0.7 million Q1 2024).

• Cash flow from operations was EUR 0.7 million, down from EUR 1.0 million year-over-year.

• Total liquidity improved to EUR 3.5 million at quarter-end, up sequentially from end of 2024.

• Deferred revenues declined to EUR 11.8 million from EUR 12.2 million sequentially.

• Write-down of EUR 0.4 million in intangible assets due to R&D focus shift.

Outlook and guidance

• 2025 outlook unchanged: net sales expected to grow versus 2024, with positive EBITDA and operating cash flow.

• ARR at end of 2024 was EUR 20.5 million; 2024 net sales grew 9% to EUR 22.2 million, EBITDA EUR 3.4 million.