F-Secure (FSC1V) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 1.1% (1.9% currency-neutral), with growth offset by FX headwinds and Tier 1 partner ramp-up delays.

• Embedded security partnerships expanded in Latin America, US, and Japan; new contracts signed.

• Profit warning issued and outlook revised downward due to commercial delays and FX impacts.

• Recognized as a market leader in scam protection and awarded for sustainability and innovation.

• Strong opportunity pipeline and optimism for future growth despite current challenges.

Financial highlights

• Q2 revenue: EUR 36.9 million (+1.1%); H1 revenue: EUR 74.0 million (+1.5%).

• Partner channel revenue up 2.6% to EUR 30.2 million; Embedded up 4.6% to EUR 5.9 million, mainly driven by Japan.

• Direct channel revenue declined 5.1%; renewal rates remain high.

• Adjusted EBITA margin: 32.2% in Q2 (EUR 11.9 million), down from 36.1% year-over-year.

• Operating expenses rose 6.8% to EUR 19.3 million, mainly due to R&D and admin one-offs.

Outlook and guidance

• 2025 outlook revised: low single-digit currency-neutral revenue growth (1–3%) and adjusted EBITA margin of 32–35%.

• Growth to be driven by partner and embedded services; direct channel expected to decline.

• Gross margin expected to be slightly lower due to higher embedded solutions share.

• CapEx to be more weighted to H2; leverage target net debt/adjusted EBITDA below 2.5x medium-term.

• Growth expected to accelerate in H2, but at a slower pace than previously anticipated.