Virtualware (MLVIR) H2 2025 earnings summary

Executive summary

• Achieved record bookings exceeding €8 million in 2025, driven by strong demand for VIROO, Simumatik, and government and nuclear projects.

• Signed a landmark €5 million contract to deploy VIROO in 66 vocational training centers across Spain, marking the largest educational XR deployment in the country.

• Strategic focus on recurring revenue, international expansion, and high-potential markets, with North America contributing 40% of 2025 revenue.

• Entered 2026 with the strongest liquidity position in company history and a record backlog.

• Gross margin improved to 93.7% in 2025, up from 86.8% the previous year, reflecting operational discipline.

Financial highlights

• Total revenue grew 3% year-over-year to €4.32 million in 2025.

• Gross profit increased 10% to €4.05 million, with gross margin expanding to 93.7% due to recurring revenue.

• EBITDA reached €672,626 (15.53% margin), higher than the unaudited figure due to final depreciation and subsidy recognition.

• Operating income fell 157% to €215,160, reflecting higher personnel and operating expenses.

• Net financial debt improved significantly to -€3.83 million, with NFD/EBITDA at -5.69; a €6.22 million post-closing payment shifted the company to a pro forma net cash position.

Outlook and guidance

• 2026 EBITDA margin guidance set at 20-25%, supported by a shift toward recurring revenue.

• Organic revenue growth for 2026 expected to exceed 30%, underpinned by a record backlog.

• Entering the final year of the 2024-2026 Strategic Plan with a record backlog and expanding margins.

• Strategic plan through 2026 focuses on product growth, sustainability, talent attraction, and organizational excellence.

• Enhanced financial flexibility supports selective investment and prudent capital allocation.