Wavestone (WAVE) Q2 2025 TU 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.

• Q2 2024/25 revenue increased 69% compared to Q2 2023/24, with 3% organic growth pro forma.

• Acquisitions of Q_PERIOR and Aspirant Consulting contributed significantly to total growth.

Financial highlights

• Consultant utilization rate was 73% in H1 2024/25; average daily rate was €937, slightly down from Q1.

• Order book at September 30, 2024, stood at 3.7 months of work, down from 4.3 months at June 30.

• Staff turnover rate stable at 13% on a rolling 12-month basis; headcount at 5,875 as of September 30, 2024.

Outlook and guidance

• Annual revenue growth target of +3% to +5% over 2023/24 pro forma revenue of €943.8m is now more challenging due to weaker-than-expected demand.

• Recurring operating margin target of over 13% is also becoming more demanding; cost-saving plan implemented.

• Next update on financial objectives scheduled for December 4, 2024.