Trifork Group (TRIFOR) Q1 2025 earnings summary

Executive summary

• Achieved 14.1% year-over-year revenue growth in Q1 2025, with 10.8% organic and 3.5% inorganic growth; US revenue doubled, Denmark grew 18.8%, while UK declined but is expected to recover.

• Transitioned to a product-led model, focusing on scalable, recurring revenue and proprietary IP, with strong Run segment performance.

• Cost-saving initiatives targeting EUR 10m annual reduction are underway, with partial impact in Q1 and full effect expected by Q3/Q4 2025.

• Maintained 2025 guidance, supported by a strong pipeline, anticipated cost savings, and robust public sector wins in Denmark and digital health expansion in Oman and Switzerland.

• Labs segment advanced with Dawn Health raising EUR 11.5m in equity, though minor fair value losses occurred.

Financial highlights

• Q1 2025 revenue reached EUR 57.5m; adjusted EBITDA EUR 7.4m (12.8% margin, up from 11.6%); EBIT margin improved to 4.9% from 2.8%.

• Net debt reduced to EUR 36.2m, aided by positive operational cash flow and Labs divestments; net-debt-to-adjusted EBITDA ratio improved to 1.4x.

• Free cash flow improved to EUR 6.4m (Q1 2024: EUR -0.2m); operating cash flow EUR 7.3m.

• Share buyback program of up to EUR 2.0m is 43% complete as of early May, expected to finish by end of June.

• Book value of Labs investments: EUR 82.7m; Dawn Health raised EUR 11.5m in equity financing.

Outlook and guidance

• 2025 guidance maintained: group revenue EUR 215–225m (4.4–9.3% growth), adjusted EBITDA EUR 32–37m (14.2–17.2% margin), EBIT margin 6.4–9.1%.

• Cost savings expected to take full effect from September; Q2 expected to be softer due to seasonality, but H2 margins and profitability anticipated to improve.

• Guidance excludes potential divestments or acquisitions and assumes no material market sentiment change.