Qt Group (QTCOM) Q1 2025 earnings summary

Executive summary

• Net sales grew 4.8% year-over-year to EUR 47.2 million, with 3.4% growth at comparable currencies, amid challenging market conditions and geopolitical tensions, especially in Europe and the U.S.; APAC performed better.

• EBITA margin was 17.9%, with EBITA at EUR 8.5 million (down 22.8% year-over-year); EBIT was EUR 6.5 million.

• Earnings per share dropped to EUR 0.20 from EUR 0.30 year-over-year.

• Quality assurance business met expectations and was a focus for ongoing investment; developer license sales were notably slow.

• Personnel increased to 888, up 82 year-over-year.

Financial highlights

• Net sales: EUR 47.2 million (up 4.8% year-over-year), with a EUR 0.6 million positive FX impact.

• EBITA: EUR 8.5 million (down 22.8% year-over-year); EBITA margin: 17.9%.

• EBIT: EUR 6.5 million (down 27.9% year-over-year); EBIT margin: 13.7%.

• Net profit: EUR 5.0 million (down 34.8% year-over-year); EPS: EUR 0.20.

• Cash and cash equivalents surged 134% to EUR 80.6 million; operative cash flow was EUR 16.7 million.

Outlook and guidance

• Net sales growth guidance revised to 10%-20% for 2025, down from 15%-25%, reflecting market uncertainty and a slow start.

• EBITA margin guidance maintained at 30%-40%, expecting stronger profitability in the second half, especially Q4.

• Management expects the first half to remain challenging, with improvement anticipated in the second half as uncertainty clears.

• Long-term growth prospects remain intact, driven by increased device displays and AI adoption in software development.