Verimatrix (VMX) H1 2025 earnings summary

Executive summary

• H1 2025 revenue declined 14% year-over-year to $26.5M, with recurring revenue at 65% of total and a sharp drop in non-recurring sales.

• Adjusted EBITDA improved 49% to $2.5M, but a $60M goodwill impairment resulted in a $65M net loss.

• Cash and cash equivalents fell to $5.3M at June 30, 2025, due to deferred customer payments, mainly in Latin America.

• The company breached debt covenants and is negotiating with Apera Group to restructure repayment terms.

• Laurent Dechaux was appointed CEO effective September 2025.

Financial highlights

• Q2 2025 revenue was $15.0M, down 10% year-over-year but up 30.5% sequentially from Q1 2025.

• H1 2025 recurring revenue totaled $17.3M (+1% year-over-year), with subscriptions up 9% and maintenance down 7%.

• Adjusted EBITDA margin for H1 2025 was 9.5%, up from 5.5% in H1 2024.

• Gross profit margin was 66.6%, down from 69.7% in H1 2024.

• Net debt increased to $21.2M at June 30, 2025.

Outlook and guidance

• Double-digit growth in subscription ARR is expected for full-year 2025.

• EBITDA margin for 2025 is forecast to be slightly above 2024's 4.9%, below the initial 10% target.

• Focus remains on expanding in media, telecoms, entertainment, banking, and new verticals, despite macroeconomic headwinds.