Zalaris (ZAL) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of NOK 370.2 million, up 16.2% year-over-year, with Managed Services accounting for 75% of total revenue.

• Adjusted EBIT reached NOK 52.1 million, up nearly 50% year-over-year, with a margin of 14.1%.

• Net profit for the quarter was NOK 32.2 million, up from NOK 6.4 million last year.

• Operating cash flow increased to NOK 21.6 million from NOK 7.2 million year-over-year.

• Board proposed a dividend of NOK 0.90 per share for 2024.

Financial highlights

• Revenue grew 16.2% year-over-year to NOK 370.2 million; Managed Services up 19.4%, Consulting up 6.8%.

• Adjusted EBIT: NOK 52.1 million (14.1% margin), up from NOK 34.8 million (10.9%) last year.

• Net profit: NOK 32.2 million (Q1 2024: NOK 6.4 million).

• Net interest-bearing debt reduced to NOK 225.6 million; leverage ratio below 1x adjusted EBITDA.

• Cash and cash equivalents at quarter-end: NOK 227.6 million.

Outlook and guidance

• New long-term target of NOK 2 billion revenue and 13-15% adjusted EBIT margin by 2028.

• Full annual effect of new BPO customers expected to drive over 14% revenue increase by Q1 2026.

• Maintains guidance of 10% average annual revenue growth and 1.5–3% churn over a cycle.

• AI and automation initiatives expected to further improve margins and operational efficiency.

• Well-positioned to navigate macroeconomic uncertainties due to long-term contracts and essential services.