Zalaris (ZAL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 with NOK 362 million revenue, up 12% year-over-year, and NOK 732 million for H1, up 14% year-over-year; adjusted EBIT reached NOK 44 million in Q2 (12.1% margin) and NOK 96 million for H1 (13.1% margin), both all-time highs.

• Managed Services drove growth, accounting for 77% of Q2 revenue with 15.4% year-over-year growth and significant EBIT margin improvement, especially in Germany.

• Strong operating cash flow of NOK 62 million in Q2 and NOK 84 million in H1, with net profit for Q2 at NOK 10.8 million and total comprehensive income of NOK 24.1 million.

• Closed new long-term agreements and expansions with annual contract value exceeding NOK 30 million, including major wins in the Nordics, Germany, and APAC.

• Strategic review concluded with no external proposals meeting value expectations; focus remains on executing growth strategy and deepening SAP partnership.

Financial highlights

• Revenue up 12% year-over-year to NOK 362 million in Q2; 10% growth in constant currency.

• Adjusted EBIT up 55% year-over-year to NOK 43.9 million in Q2; margin improved by 3.3 percentage points to 12.1%.

• Net profit for Q2 was NOK 10.8 million, up from NOK 5.3 million last year; total comprehensive income was NOK 24.1 million.

• Net interest-bearing debt reduced to NOK 217 million, leverage ratio improved to 0.8x.

• Dividend of NOK 0.90 per share paid in Q2, totaling NOK 19.6 million.

Outlook and guidance

• On track to reach NOK 1.5 billion run-rate revenue by 2025, one year ahead of previous target; new target set for NOK 2 billion revenue and 13%-15% EBIT margin by 2028.

• Managed Services expected to reach at least 80% of total revenue at NOK 2 billion milestone.

• Signed BPO contracts to add approximately NOK 75 million in annual recurring revenue when implemented.

• Total annual revenue expected to increase by approximately NOK 202 million by Q3 2026 based on signed contracts.

• Further margin improvements anticipated from AI, automation, and cost optimization.