Asseco South Eastern Europe (ASE) Q3 2025 earnings summary

Executive summary

• Q3 2025 results were significantly impacted by non-cash write-offs and revenue reversals in India and UAE/Dubai, reducing operating profit/EBIT by EUR 7.5 million.

• Excluding one-off items, EBIT grew 21% year-over-year for Q3, with strong performance in Banking and Dedicated Solutions, but Payment segment slowed due to client transaction shifts and underperformance in key markets.

• Year-to-date, sales revenues increased by 5% to PLN 1,263.9 million, but net profit attributable to shareholders fell 6% to PLN 133.2 million.

• Cash flow improved year-over-year, with strong LTM conversion and higher net cash from operating activities.

Financial highlights

• Q3 2025 revenue was €102.5m, down 2% year-over-year; adjusted EBIT was €18.3m (+21% YoY); adjusted EBITDA €24.4m (+17% YoY); adjusted NPAT €12.5m (+1% YoY).

• For Q1-3 2025, revenue grew 7% YoY to €298.3m; adjusted EBIT was €39.7m (+10% YoY); adjusted EBITDA €58.3m (+10% YoY); adjusted NPAT €26.8m (-9% YoY).

• Operating cash flow for the first three quarters reached nearly EUR 39 million, and free cash flow for Q3 2025 LTM was €43.4m.

• Gross profit margin for the nine months was 24.9%, EBITDA margin 18.5%, and net profit margin 10.5%.

• Basic and diluted EPS for the period was PLN 2.57, compared to PLN 2.72 a year earlier.

Outlook and guidance

• 2025 full-year revenue is forecast at €397.6m, up 10% from 2024, with margin1 expected to rise 13% to €302.9m.

• Q4 backlog increased 20% overall, with banking and dedicated solutions up 36% and payment up 6%.

• Banking and Dedicated Solutions are expected to see 10% revenue growth in 2025, with margin1 up 21%.

• Management expects continued growth in South Eastern Europe, India, Turkey, and Latin America, but notes risks from geopolitical instability, inflation, and currency fluctuations.

• No financial forecasts for 2025 were published in some reports.