Quadient (QDT) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €258 million, down 1.1% reported and 2.5% organically year-over-year, with strong double-digit growth in Digital and Lockers offset by a cyclical low in Mail and challenging US macroeconomic conditions.

• Subscription-related revenue rose to 75% of total, up from 72% last year, driven by digital and locker solutions.

• EBIT grew organically, with EBITDA margin improvements across all solutions, reflecting operational discipline.

• Full-year 2025 guidance is maintained, with confidence in a stronger second half and a robust order pipeline.

• Acquisitions of Cerenzia/Serensia and Package Concierge strengthen digital automation and locker offerings, positioning for regulatory and market opportunities.

Financial highlights

• Q1 2025 revenue: €258 million, down 1.1% reported and 2.5% organically year-over-year.

• Digital revenue grew 7.2% organically to €67 million; Lockers up 12.2% organically to €27 million; Mail declined 7.9% organically to €164 million.

• Recurring revenue now represents 75% of total revenue, up from 72% last year.

• Digital annual recurring revenue reached €237 million, up 9.6% year-over-year.

• Mail hardware sales declined by 15.8% year-over-year, reflecting renewal cycle and strong prior-year comparison.

Outlook and guidance

• Full-year 2025 guidance is reaffirmed, with expected acceleration in organic revenue and EBIT growth over 2024.

• Q2 is expected to face similar macro uncertainty, especially in the US, but a stronger H2 is anticipated, particularly for Mail.

• Sustained momentum and profitability improvements are projected for Digital and Locker solutions.