Trifork Group (TRIFOR) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 revenue of EUR 221 million, reflecting 7–7.2% year-over-year growth and 9–9.4% organic growth, driven by a product-led strategy and strong demand for AI, data storage, healthcare, and public sector solutions.

• Product revenue grew 27% in Q4 and 38% for the year, with product share rising from 27% to 35% of total revenue; services saw a small decline due to transition toward product-led solutions.

• Margin improvement of 3.5 percentage points in Q4, supported by cost control and operational discipline, with adjusted EBITDA for 2025 up 23–35% to EUR 30–33.3 million.

• Announced EUR 10 million share buyback program, with EUR 2 million already completed, and proceeds from Labs and XCI divestments supporting capital allocation.

• Strong cash flow generation, with operational cash flow conversion at 98% and free cash flow improving to EUR 27.3 million.

Financial highlights

• Adjusted EBITDA margin reached 18.1% in Q4 and 13.6–15.1% for the year, with EBIT at EUR 16.8 million and EBIT margin of 7.6%.

• Net Debt to EBITDA ratio at 0.6 at year-end, with net liquidity improving to EUR -17.6 million.

• Product segment achieved a 30.6% margin in Q4 and 20.9–21% for the year, a 69–70% increase year-over-year.

• Operating cash conversion was 97.9–98% for the full year.

• Free cash flow for 2025 was EUR 27.3 million, up from EUR 11.4 million in 2024.

Outlook and guidance

• 2026 revenue guidance set at EUR 230–240 million, representing 6–11.3% organic growth, with adjusted EBITDA guidance of EUR 35–40 million and a margin of 14.6–17.4%.

• Targeting continued increase in product revenue share, aiming for 50% over time, and focusing on cost control and capital reallocation.

• Management notes seasonality in both Products and Services, with higher revenue and profit typically in the first two quarters.