F-Secure (FSC1V) Q3 2025 earnings summary

Executive summary

• Q3 2025 achieved 1.3% currency-neutral revenue growth, but reported revenue was flat or slightly down due to FX headwinds and weak direct channel performance.

• Significant progress in AI-powered transformation, with launches of Horizon and Halo platforms and continued investment in AI tools.

• Strong Tier 1 partner activity, with new and expanded agreements in Asia, the U.S., and the Nordics, especially in scam protection.

• Scam protection technology won industry awards and expanded to cover instant messaging and deepfake scams.

• Strategic focus on innovation, operational excellence, and commercial performance, with transformation toward AI-native solutions.

Financial highlights

• Q3 2025 revenue: EUR 36.1 million (-0.8% YoY); 9M 2025 revenue: EUR 110.0 million (+0.8% YoY, currency-neutral +1.2%).

• Embedded Services revenue grew 10.3% to EUR 6.0 million, mainly driven by Japan and the U.S.

• Security Suite revenue declined 1.9% to EUR 23.5 million; direct channel revenue fell 5.9% to EUR 6.6 million.

• Gross margin at 83.9%, down from previous periods due to higher embedded mix and lower vendor volumes.

• Adjusted EBITDA/EBITA margin at 37% in Q3, 34.8% YTD; operating cash flow Q3: EUR 11.6 million; cash conversion 78%.

Outlook and guidance

• Maintains guidance for low single-digit currency-neutral growth and adjusted EBITA/EBITDA margin of 32%-35% for 2025.

• Growth to be driven by partner and embedded services, with direct business expected to decline.

• Medium-term targets: high single-digit CAGR, EBITA margin near 40% at EUR 200 million revenue, leverage below 2.5x.