Virtualware (MLVIR) H1 2025 earnings summary

Executive summary

• Strategic consolidation in international markets, especially the U.S., and technological reinforcement of the VIROO platform marked the first half of 2025.

• The company listed on Euronext Growth, enhancing liquidity and international investor access.

• Signed the largest contract in its history, worth over €5 million, for 66 VET Centres in Spain.

• Integration of Simumatik, acquired in late 2024, is progressing well.

Financial highlights

• Revenues for H1 2025 declined 22% year-over-year due to seasonality and multi-year contract cycles.

• Gross margin improved to 95% from 85% in H1 2024, driven by a shift away from hardware-related services.

• Personnel expenses increased due to headcount growth from the Simumatik integration.

• EBITDA turned negative for the first time since 2022, attributed to a change in product mix.

• Cash decreased from €680,000 to €520,000; net financial debt increased by €1 million to €1.4 million.

Outlook and guidance

• Expects a very positive second half of 2025, supported by the new major contract and a strong pipeline.

• Reaffirms growth outlook for FY2025, anticipating positive EBITDA and cash flow.

• Forecasts a record year for new contract volume.