TextMagic (MAGIC) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €7.12M, down 9% year-over-year, mainly due to competitive pricing and regulatory challenges in the US market.

• EBITDA decreased 18% to €2.58M, and the period ended with an operating loss of €123K versus a €1.1M profit in H1 2024.

• Active users declined 9% to 21,307, but SMS volumes rebounded in Q2 2025, up 7% year-over-year for that quarter.

• The team was downsized to 58 for Textmagic and 6 for Voog/Edicy to optimize costs.

• New features launched include Business Instagram, Facebook Messenger, and an email campaign tool.

Financial highlights

• Revenue: €7,115K (H1 2024: €7,809K), -9% year-over-year.

• EBITDA: €2,581K (H1 2024: €3,149K), -18% year-over-year; EBITDA margin 36% (H1 2024: 40%).

• Operating loss: €123K (H1 2024: profit €1,097K); Net loss: €93K (H1 2024: net profit €1,245K).

• Cash and cash equivalents: €4,060K at June 30, 2025 (June 30, 2024: €4,229K).

• Cash flow from operations: €2,198K (H1 2024: €3,124K).

Outlook and guidance

• Focus for the remainder of 2025 is on restoring revenue growth through enhanced marketing and improving profitability via cost efficiency.

• Product development will be guided by user feedback, with continued expansion of communication channels.