Itera (ITERA) Q3 2025 earnings summary

Executive summary

• Achieved 7% year-over-year revenue growth in Q3 2025, with EBIT margin improving to 3.8% and EBITDA margin rising to 7.9%, driven by higher billable utilization and operational improvement programs.

• Cloud and Application Services (CAS) delivered 29% revenue growth in Q3 and 21% year-to-date, powered by AI and automation investments.

• New customers contributed 13% of revenue in the past 12 months, reducing customer concentration and broadening the growth platform.

• Employee count increased to 705, reflecting a return to net FTE growth after several quarters of reduction.

• The company remains committed to Ukraine as a strategic delivery center, supporting humanitarian and reconstruction efforts.

Financial highlights

• Q3 2025 revenue reached NOK 196.3 million, up 7% year-over-year; gross profit was NOK 181.5 million, also up 7%.

• EBIT margin for Q3 was 3.8%, up from 0.1% last year; EBITDA margin rose to 7.9% from 4.5% year-over-year.

• Cash flow from operations in Q3 was NOK -7.2 million, but positive NOK 54 million over the last 12 months, with cash conversion rate declining to 74.5%.

• Ordinary dividend of NOK 0.20 per share paid in June, with a supplementary NOK 0.10 per share in December, totaling 64% of last year’s earnings.

• Equity ratio improved to 20.0% from 18.7% year-over-year.

Outlook and guidance

• Management expects gradual market recovery, with AI and cloud as key drivers of future growth and profitability.

• Strong new customer acquisition and international sales capacity are expected to generate more substantial revenue.

• Operational improvement program and regional structure are expected to enhance resilience and flexibility.

• Gaining momentum in the defence sector, leveraging experience in Ukraine.

• The next interim report will be published on 13 February 2026.