Administer (ADMIN) Q2 2025 earnings summary

Executive summary

• Announced the largest acquisition in company history, acquiring Sarastia's municipal financial, payroll, and software business, pending regulatory approval, expected to add €35 million in revenue and 350 employees.

• The acquisition will make the group the leading provider of financial and payroll services to the municipal sector in Finland.

• Net sales for January–June 2025 were €38.3 million, nearly unchanged year-over-year in a challenging market.

• Focus remains on improving profitability amid a challenging market environment, though improvement slowed due to higher costs, municipal accounting losses, and increased credit losses.

Financial highlights

• H1 2025 revenue was €38.3 million, down 0.1% year-over-year; H1 EBITDA was €3.6 million (9.4% margin), flat year-over-year; adjusted EBITDA grew 5% to €3.8 million (9.9% margin).

• H1 operating profit was €0.6 million (1.7% margin), impacted by €2.1 million in acquisition-related goodwill amortization.

• Q2 2025 revenue was €19.3 million, flat year-over-year; Q2 EBITDA was €1.6 million (8.1% margin), down from €1.9 million.

• Profit for the period was €0.2 million, down from €0.5 million year-over-year; EPS for H1 was €0.01, down from €0.04.

• Cash flow from operations was €1.4 million, unchanged from the previous year.

Outlook and guidance

• Expects continued investments in growth, both organic and inorganic, in 2025.

• 2025 revenue guidance: €72–78 million; EBITDA margin guidance: 7–10%.

• Market conditions expected to remain stable but challenging for the rest of the year, with a focus on profitability improvement.

• Guidance will be updated if the Sarastia acquisition is completed.