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Vitec Software Group (VIT) investor relations material
Vitec Software Group Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Served 26,500 customers at year-end, operating 49 business units across 13 countries after recent acquisitions.
Net sales for Q4 2025 increased by 6% year-over-year to SEK 983 million, with recurring revenues up 8% to SEK 831 million and an EBITA of SEK 268 million, unchanged from last year.
For the full year 2025, net sales rose 9% to SEK 3,633 million, recurring revenues grew 11% to SEK 3,204 million, and operating profit increased 2% to SEK 712 million.
Added Poland as a new home market in Q4, further diversifying geographic risk.
The business model emphasizes high recurring revenues (88% of net sales in 2025), providing stable cash flows and resilience to market fluctuations.
Financial highlights
Net sales grew 6% in Q4 and 9% for the full year, driven mainly by subscription-based revenues.
Q4 EBITA margin was 27% (down from 29% last year), and operating margin improved to 21% from 19%.
Cash flow from operating activities for Q4 was SEK 111 million (up from SEK 10 million), and SEK 1,110 million for the year (up from SEK 949 million).
Cash EBIT for the year increased 2% to SEK 816 million, with a margin of 22%.
Currency headwinds impacted both sales and profits, with 2% negative effect for the year and 3% for the quarter.
Outlook and guidance
Recurring revenue growth expected to be 1% lower than last year due to pricing index changes; churn remains around 1%.
Organic recurring revenue growth for Q1 2026 anticipated at 2%-3%, down from 3%-4% last year.
Management aims for gradual margin improvement, targeting at least 20% EBIT margin over time.
The Board proposes a dividend increase of 2% to SEK 3.68 per share, marking the 24th consecutive year of dividend growth.
Financial readiness for further acquisitions remains strong, with unused credit facilities and solid cash flow.
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Frequently asked questions
Providing niche software solutions
Vitec is a Swedish company focusing on providing niche software solutions for their clients through their extensive network of subsidiaries. The company is listed on the Stockholm stock exchange and primarily relies on subscription based revenue, and does a big part of through strategic acquisitions and mergers.
Growing through M&A
Vitec has a history of strategic mergers and acquisitions that have strengthened their position in the industry. Through these ventures, they have expanded their product portfolio, enhanced their technological capabilities, and gained access to new markets. Some notable acquisitions by Vitec include SmallHD, a leading manufacturer of high-definition on-camera field monitors; Autocue, a provider of teleprompting solutions; and Teradek, a pioneer in wireless video transmission systems.
Revenue through a SaaS-subscriptions
The vast majority of the programs and services that Vitec provides for their customers are distributed through a subscription model. These can be purchased online, and as previously mentioned it allows customers and users to customize their subscription based on their individual needs and preferences. It also allows customers to try out the base models of each service as a starting point, before they can move on to more comprehensive programs if they so choose.
Reaching several markets through diverse subsidiaries
Vitec might be founded, listed, and headquartered in Sweden, but through acquisitions of companies in different countries have been able to expand outside of their home country’s borders. Today, the company does a bulk of their business in Europe through subsidiaries in countries such as the Netherlands, several Nordic countries, Switzerland, and others. Vitec also has a presence in Japan through a subsidiary operating a software system for commercial laundry services. The company also has activities in the US. However, it is worth noting that their scale of operations in Asia and North America pales in comparison to their presence in Europe. Some companies working in the same market segment are companies such as Belden, Emerson, and Schneider Electric.
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