Vitec Software Group (VIT) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 reached SEK 880 million, up 23% year-over-year, with recurring revenues at SEK 786 million, up 28% and representing 89% of net sales; serves over 26,000 B2B customers across 46 business units in 12 countries.

• EBITA remained stable at SEK 220 million, but EBITA margin declined to 25% from 31% due to higher amortization and a shift in revenue mix.

• Operating profit was SEK 153 million, unchanged from last year, while EPS before dilution decreased 8% to SEK 2.09.

• Cash flow from operating activities increased to SEK 757 million, supporting future acquisitions and financial flexibility.

• Acquisition of Dutch company Intergrip completed in January 2025, contributing to growth and recurring revenue.

Financial highlights

• Recurring revenues: SEK 786 million (Q1 2024: SEK 616 million), up 28%; recurring share of net sales: 89%.

• EBITA: SEK 220 million (Q1 2024: SEK 220 million), EBITA margin 25% (Q1 2024: 31%).

• Operating profit: SEK 153 million (Q1 2024: SEK 153 million), operating margin 17% (Q1 2024: 21%).

• Cash EBIT rose 12% to SEK 178 million; cash EBIT margin was 20% (down from 22%).

• Cash flow from operating activities represented 86% of net sales.

Outlook and guidance

• Organic pro forma growth expected to slow as inflation-driven price increases moderate in 2025.

• High proportion of recurring revenues and diversified customer base provide stability amid mixed market demand and global uncertainty.

• OpEx expected to decrease in Q2 and Q3 due to seasonality and completion of salary/price increases by end of Q2.

• Project rollouts and service revenues are expected to pick up as market activity resumes.

• No material changes in risk assessment since the last annual report; ongoing monitoring of external factors.