Vitec Software Group (VIT) Q4 2025 earnings summary

Executive summary

• Net sales for 2025 rose 9% to SEK 3,633 million, with 88% from recurring revenues and 26,500 customers served across 49 business units in 13 countries.

• Operating profit increased 2% to SEK 712 million, while EBITA declined 4% to SEK 959 million; EPS before dilution rose 2% to SEK 10.96.

• Four major acquisitions completed around year-end, including NMG (Poland), Autonet (Netherlands/Belgium), and Infometric (Sweden), expanding presence and diversifying risk.

• Maintains a decentralized structure fostering knowledge sharing, innovation, and resilience to market fluctuations.

• Strong cash conversion and four consecutive quarters of expanding cash EBIT margins.

Financial highlights

• Q4 2025 net sales reached SEK 983 million, up 6% year-over-year, with recurring revenues up 8% to SEK 831 million.

• Full-year recurring revenues grew 11% to SEK 3,204 million, with subscription-based revenues maintaining 90%+ gross margin.

• Q4 operating profit rose 16% to SEK 206 million; Q4 net profit increased 40% to SEK 135 million, with EPS at SEK 3.41.

• Cash flow from operating activities for the year was SEK 1,110 million, up from SEK 949 million in 2024, with 85% cash conversion to EBIT.

• Currency headwinds impacted sales and profits, with a 2% negative effect for the year and 3% for the quarter.

Outlook and guidance

• Recurring revenue growth expected to be 1% lower than last year due to pricing index changes; churn remains around 1%.

• Organic recurring revenue growth for Q1 2026 anticipated at 2%-3%, down from 3%-4% last year.

• Management targets gradual margin improvement, aiming for at least 20% EBIT margin over time.

• Board proposes a 2% dividend increase to SEK 3.68 per share, marking 24 consecutive years of dividend growth.

• Financial readiness for further acquisitions remains strong, with unused credit facilities and solid cash flow.