Wavestone (WAVE) H1 2025 earnings summary

Executive summary

• H1 2024/25 revenue rose 65% year-over-year to €457.8m, with 2% organic growth on a pro forma basis.

• Recurring operating profit increased 26% to €46.4m, but margin declined to 10.1% from 13.3% due to integration costs and seasonality.

• Net income grew 19% to €27.3m, with net margin at 6.0% versus 8.3% a year earlier.

• Integration of Q_PERIOR and Aspirant Consulting contributed to revenue growth and increased financial debt.

Financial highlights

• Consultant utilization rate held at 73%; average daily rate was €937, down from €944 in Q1.

• Order book at 3.7 months of work; at constant scope, 3.4 months, down from 4.1 months at March 31, 2024.

• Staff turnover rate stable at 13% (14% at constant scope), with 5,875 employees at September 30, 2024.

• Self-financing capacity up 38% to €54.3m; operating cash flow at €2.5m, down from €9.3m year-over-year.

Outlook and guidance

• Annual revenue now expected to be stable versus €943.8m pro forma for prior year, down from initial +3% to +5% organic growth target.

• Recurring operating margin target revised to 12.5%, from above 13% previously.

• Market conditions remain challenging, with weak demand, price pressure, and low visibility for Q4 2024/25.

• Recruitment plan for 1,000 gross hires maintained, aiming for 3% consultant headcount growth.