Webstep (WSTEP) Q3 2025 earnings summary

Executive summary

• Q3 revenue was NOK 178.3 million, down 5.8% year-over-year, with EBIT of NOK 8.2 million and net profit of NOK 5.1 million, reflecting a challenging market and reduced consultant headcount.

• Year-to-date revenue reached NOK 629.7 million, a 2.9% decrease, with EBIT margin stable at 7.9% and net profit of NOK 36.3 million, nearly flat year-over-year.

• Major contract wins in the public sector and energy, and continued strong performance in Data & AI services, underpin future growth prospects.

• Focus on sharper customer orientation, agility, and a high-performance culture to drive future growth.

• Secured major contracts with The Norwegian Courts Administration, Statnett, Fifty, NDMA, Norsk Tipping, and Trondheim municipality.

Financial highlights

• Q3 EBIT margin was 4.6% (5.7% last year); adjusted for a NOK 1.1 million bad debt, margin was 5.2%.

• Net profit for Q3 was NOK 5.1 million; earnings per share NOK 0.19.

• Net free cash flow for Q3 was NOK 12.0 million; cash and cash equivalents at quarter-end NOK 62.4 million.

• Total assets at quarter-end were NOK 590.4 million, with equity of NOK 325.5 million and an equity ratio of 55.1%.

• Year-to-date cash flow from operations was NOK 54.6 million.

Outlook and guidance

• Market expected to remain challenging in the short term due to macroeconomic and geopolitical uncertainty.

• Improved sales pipeline and positive signals for future contract extensions, especially in public sector and AI-driven projects.

• Long-term goal remains to exceed a 10% EBIT margin once top-line growth resumes.

• Public sector business remains steady; headcount affected by discontinuing non-core activities and consultant churn.

• Continued hiring, but headcount growth may take time to recover due to selective recruitment.