Admicom (ADMCM) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales were volatile and below expectations, but December was the strongest month in years; overall profitability was strong and aligned with updated guidance.

• Strategic shift from a product-centric to a customer-centric platform, with operational simplification, Finnish subsidiary mergers, and the launch of the first commercial AI product for construction site operations.

• Over 700 customers transitioned to a new billing model; significant investments made in AI R&D and operational simplification.

• Customer success operations and cross-sales momentum improved, with a focus on mitigating churn and accelerating growth.

• CEO transition: Simo Leisti started as Group CEO on January 1, 2025.

Financial highlights

• Annual recurring revenue (ARR) grew 6.0% year-over-year to €37.8 million, below the original guidance minimum of 8%.

• Q4 adjusted EBITDA margin was 33.2%, with full-year adjusted EBITDA at €12.3 million (32.5% margin), at the high end of updated guidance.

• Q4 profit rose 49.8% year-over-year to €1.46 million; Q4 EPS was €0.29, up 49.1%.

• Customer churn for the year was 6.3%, up from 5.6% a year ago, with about one-third due to customer insolvencies.

• Company remains debt-free with strong cash flow and high cash conversion.

Outlook and guidance

• 2026 guidance: ARR growth of 6–12%, total revenue growth of 5–10%, and adjusted EBITDA margin of 31–36%.

• Second half of 2026 expected to see faster ARR growth; profitability guidance allows for potential system investments.

• Growth is highly dependent on market recovery, especially in the construction sector, with temporary negative impact expected from the transition to a new billing model and loss of annual adjustment fees.

• No rapid improvement in profitability targeted for 2026 due to ongoing investments and billing model transition.

• Focus on accelerating growth in Finland, platform development, international expansion, and re-activating M&A pipeline.