Wavestone (WAVE) H1 2025 earnings summary

Executive summary

• Revenue rose 65% year-over-year to €457.8m in H1 2024/25, driven by the consolidation of Q_PERIOR and Aspirant Consulting, 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 a net margin of 6.0% versus 8.3% a year earlier.

• Consultant utilization rate remained strong at 73%, and staff turnover was stable at 13%.

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

Financial highlights

• Revenue: €457.8m (+65% year-over-year); organic growth +1% at constant scope and forex; 2% organic growth pro forma.

• Recurring operating profit: €46.4m (+26%); recurring operating margin: 10.1% (down from 13.3%).

• Operating income: €41.6m (+25%); net income: €27.3m (+19%).

• Earnings per share (diluted): €1.11 (vs €1.16 in H1 2023/24).

• 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, targeting +3% consultant headcount growth.