Vitec Software Group (VIT) Q2 2025 earnings summary

Executive summary

• Serves 26,000 B2B customers across 46 business units in 12 countries, with pro forma sales of SEK 3.6 billion and a decentralized structure focused on vertical software niches.

• Net sales for Jan–Jun 2025 reached SEK 1,796 million, up 12% year-over-year; Q2 net sales were SEK 916 million, up 4% from Q2 2024.

• Recurring revenues accounted for 89% of net sales in H1 2025, reflecting a stable, subscription-driven model.

• EBITA for Jan–Jun 2025 was SEK 456 million, down 6% year-over-year; Q2 EBITA was SEK 236 million, down 11% from Q2 2024.

• Cash flow from operating activities for H1 2025 was SEK 843 million, up from SEK 783 million in H1 2024.

Financial highlights

• Proforma net sales for the rolling 12 months to June 2025 were SEK 3,638 million, with recurring revenues at SEK 3,188 million.

• EBITA margin for Jan–Jun 2025 was 25% (down from 30% year-over-year); operating margin was 18% (down from 22%).

• Earnings per share before dilution for H1 2025 was SEK 4.73, a 13% decrease year-over-year.

• Cash flow from operating activities for the half-year increased to SEK 843 million.

• Interest-bearing net debt at June 30, 2025, was SEK 2,109 million (up from SEK 1,931 million year-over-year).

Outlook and guidance

• Management notes stable performance across business units, with no extraordinary results in Q2 2025.

• M&A pipeline remains solid, with readiness for further acquisitions and expectations for increased activity as postponed deals are likely to close.

• The company maintains a long-term profit target of at least 20% operating margin, with ongoing efforts to gradually increase profitability.