Netcompany Group (NETC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 3.9% year-over-year to DKK 1,714.9m, led by Netcompany CEU/SEE & EUI, UK, and Norway, while Denmark declined due to resource allocation and fewer working days.

• Adjusted EBITDA margin declined to 12.9–13.8% in Q2, mainly due to investments in growth, SDC integration, and fewer working days.

• Net profit dropped 53.1% to DKK 55.7m, impacted by lower operating profit and special items related to the SDC transaction.

• Major new contracts secured in public and private sectors across Denmark, SEE & EUI, UK, Sweden, Greece, and the Netherlands.

• SDC acquisition completed July 1, 2025; integration into Netcompany Banking Services underway, with financial reporting to include this segment from Q3.

Financial highlights

• Q2 group revenue up 3.9% year-over-year to DKK 1,714.9m; H1 2025 revenue up 6.4–6.5% to DKK 3,456–3,459m, driven by public sector growth.

• Q2 adjusted EBITDA margin before HQ cost fell to 13.8%; gross profit margin declined to 25.8% from 29.4% year-over-year.

• Q2 net profit: DKK 55.7m (down 53.1% year-over-year); Q2 adjusted EBITDA: DKK 220.7m (down 18%).

• Q2 free cash flow DKK 25.6m (down from DKK 148.2m); cash conversion rate 32.6% (down from 104.7%).

• Days sales outstanding improved to 58 days from 73 days year-over-year.

Outlook and guidance

• Full-year 2025 organic revenue growth expected at 5–10%, adjusted EBITDA margin at 16–19%, excluding SDC impact.

• SDC (Netcompany Banking Services) expected to contribute DKK 840–870m non-organic revenue in H2 2025, flattish year-over-year, and to be EPS dilutive in 2025 but accretive from 2026.

• Revenue visibility at end-Q2 up 6.3% to DKK 6,210.6m; pipeline and early Q3 conversions support guidance.

• Share buyback programme of DKK 500m running until January 2026.