Lemonsoft (LEMON) Q2 2025 earnings summary

Executive summary

• Net sales grew 5.3% year-over-year in Q2 2025, mainly from acquisitions, while organic growth was negative due to weaker consulting and transaction revenue.

• SaaS revenue increased 10.4% year-over-year, with recurring revenue share rising to 84.9%.

• Platform migration to Microsoft Azure completed, enabling increased automation and cost efficiency; legacy data center written off.

• Organizational restructuring finalized, reducing headcount by 25 and streamlining operations; full cost savings to be realized in Q3.

• Chief Commercial Officer stepped down; management recruitment underway.

Financial highlights

• Net sales for Q2 2025 increased 5.3% year-over-year to EUR 7.4 million; H1 net sales up 7.6% to EUR 15.0 million.

• Adjusted EBITDA for H1 was EUR 3.64 million (24.3% of net sales), up from EUR 2.99 million (21.5%) year-over-year.

• Adjusted EBIT for H1 was EUR 2.94 million (19.6% of net sales), up from EUR 2.46 million (17.7%) year-over-year.

• Gross margin for H1 was 86.4% of net sales, slightly down due to increased platform costs.

• Cash flow from operating activities for H1 was EUR 4.4 million, up from EUR 2.5 million year-over-year.

Outlook and guidance

• Platform optimization and personnel reductions expected to lower costs and improve profitability in H2 2025.

• Net sales for 2025 expected to increase by 0–10% compared to 2024.

• Adjusted EBIT margin forecasted at 18–24% of net sales for 2025.

• Focus remains on accelerating SaaS revenue growth and turning net sales back to growth by year-end.

• Financial targets to be updated in the fall.