Wiit (WIIT) Q3 2025 earnings summary

Executive summary

• Adjusted revenues rose 9.2% year-over-year to €125.7M, driven by organic ARR growth in Italy and Germany and contributions from recent acquisitions.

• Recurring revenues (ARR) increased by 11.6% to €102.3M, representing 89% of total revenues.

• Adjusted EBITDA grew 19.5% to €50.9M, with a margin of 40.5% (like-for-like 43.2%).

• Adjusted EBIT increased 17.1% to €26.4M, with a margin of 21.0% (like-for-like 21.8%).

• Adjusted net profit rose 15.9% to €14.1M.

Financial highlights

• Organic ARR growth: Italy +7.5%, Germany +2.7%, with higher rates excluding churn; Switzerland +4.8%.

• Acquisitions (Edge & Cloud, Econis AG, Michgehl & Partner) contributed significantly to revenue growth.

• Adjusted operating costs and personnel costs increased mainly due to acquisitions, nearly offset by synergies.

• Depreciation, amortization, and write-downs rose by €4.4M, reflecting investments and acquisitions.

• Net financial debt including IFRS16 at €218.1M as of September 30, 2025; operating cash flow generation of €31.2M.

Outlook and guidance

• Continued expansion in the cloud market and SaaS, PaaS, IaaS adoption expected to drive further growth.

• Ongoing M&A activity in the DACH region, with Germany as a key growth market.

• Forecasts strong EBIT margin increase over the next two years, driven by higher asset occupation rates, especially in Italy.

• Marketing expenses in Germany to increase, targeting 3-3.5% of recurring revenue in the next two years.

• Limited exposure to Russian, Ukrainian, and Israeli markets, with no significant risk anticipated.