Tinexta (TNXT) Q1 2025 earnings summary

Executive summary

• Revenues for Q1 2025 reached €115.5 million, up 17.4% year-over-year, with all business units contributing to growth and both organic expansion and acquisitions supporting results.

• Adjusted EBITDA rose 23.8% to €18.7 million, with reported EBITDA more than doubling to €17.1 million due to lower non-recurring costs and improved profitability.

• Adjusted net profit was €3.7 million, a significant improvement from a prior-year loss; reported net profit improved to -€2.7 million from -€3.1 million.

• Free cash flow (adjusted) increased to €33.6 million, and net financial position improved to €290.9 million from €321.8 million at year-end 2024.

• Group-wide rebranding to a unified "One Group, One Brand" strategy launched in April to foster integration and synergy across subsidiaries.

Financial highlights

• Revenues: €115.5 million, up 17.4% year-over-year, with 6.8% organic and 10.6% from acquisitions.

• Adjusted EBITDA: €18.7 million, up 23.8% year-over-year; margin improved to 16.2% from 15.4%.

• Reported EBITDA: €17.1 million, more than 100% growth year-over-year.

• Adjusted net profit: €3.7 million; reported net profit improved from a €3.1 million loss to -€2.7 million.

• Net financial position: €290.9 million, improved by €31 million from €321.8 million.

• Adjusted free cash flow: €33.6 million; LTM adjusted free cash flow at €48.3 million.

• Leverage ratio (net financial position/LTM adjusted EBITDA): reduced to 2.54x from 2.8x (pro forma) or 2.9x (reported).

• CapEx stable at €6.3 million.

Outlook and guidance

• 2025 revenue growth expected at 11%-13% (7%-9% organic); adjusted EBITDA growth expected at 15%-17% (10%-12% organic).

• Leverage ratio guidance: 2.2-2.4x net financial debt/adjusted EBITDA.

• Regulatory tailwinds (NIS2, eIDAS, Industry 5.0) and digital transformation trends expected to support growth.

• Focus on operational efficiency, especially in Cybersecurity and Business Innovation.