Vertiseit (VERT) Q2 2025 earnings summary

Executive summary

• ARR reached 290.2 MSEK as of June 30, 2025, up 66.1% year-over-year with 16.2% organic growth; SaaS revenue for Q2 was 73.1 MSEK, up 26.7 MSEK from last year.

• Q2 net revenue grew 94.4% year-over-year to 168.1 MSEK, with SaaS comprising 44% of the mix.

• Completed the strategic acquisition of MDT/MDT Medientechnik GmbH, adding 20 MSEK ARR and strengthening presence in Germany and the DACH region; integration expected within three months.

• Adjusted EBITDA for Q2 was 21.6 MSEK (12.9% margin), impacted by non-recurring costs related to efficiency measures and acquisition activities.

• Continued focus on a roll-up M&A strategy, targeting smaller, frequent acquisitions with high SaaS share and key customers in growth markets.

Financial highlights

• ARR reached 290.2 MSEK at quarter-end, up 66.1% year-over-year, with 16.2% organic growth; MDT's 20 MSEK ARR to be included from Q3.

• Q2 net revenue was 168.1 MSEK, up 94.4% year-over-year; SaaS revenue for Q2 was 73.1 MSEK.

• Adjusted EBITDA margin for Q2 was 12.9%, impacted by 16.5 MSEK in non-recurring costs; net revenue retention was 107%, churn at 2.8%.

• Net debt stood at 119 MSEK; available liquidity was 199 MSEK at quarter-end.

• Gross margin decreased to 62.7% from 70.5% year-over-year, reflecting a higher share of Systems revenue.

Outlook and guidance

• Organic ARR growth is expected to remain above 15% annually, with Q2 at the lower end due to market caution; similar pace anticipated for the second half of the year.

• Efficiency initiatives aim for H2 EBITDA margin exceeding 20%, with a long-term ambition to reach 1 billion SEK in ARR by end of 2032, requiring a 17% annual organic growth rate.

• Efficiency program expected to improve annual EBITDA and cash flow by 25 MSEK once fully implemented after Q4 2025.

• Sales cycles are lengthening due to cautious market sentiment, especially in the US, but the pipeline remains strong.