Redegal (SCRDG) Q4 2024 earnings summary

Executive summary

• Revenue reached €13.76M in 2024, up 36.6% year-over-year, driven by strong Digital Business growth and international expansion, especially in Portugal and continued investment in proprietary products.

• Adjusted EBITDA was €788K, down 30.3% year-over-year, impacted by lower gross margin and extraordinary expenses related to the BME Scaleup listing and tax recargos.

• Net result was a loss of €1.63M, mainly due to non-recurring items and increased amortization from new product development.

• The company completed a successful capital increase and debuted on BME Scaleup in January 2025, with a 28.6% share price appreciation in the first quarter.

• Free cash flow improved to €1.3M, reflecting better working capital management and capital injections.

Financial highlights

• Revenue: €13.76M (+36.6% year-over-year); Digital Business €10.03M (+60.6%), Tech €3.33M (-12.3%), Product €0.40M (n.s.).

• Adjusted EBITDA: €788K (-30.3% year-over-year); Adjusted EBIT: -€24.5K.

• Gross margin dropped from 67.2% to 39.8% due to higher costs in Mexico, Portugal expansion, and product development.

• Net financial debt reduced by 91.1% to €0.5M; net debt/EBITDA ratio improved from 3.7x to 0.6x.

• Free cash flow: €1.3M (vs €0.5M in 2023).

Outlook and guidance

• 2025 focus on margin recovery, product growth, and international expansion, especially in Portugal and Mexico.

• 2028 targets: revenue €22.6M, adjusted EBITDA €4.4M; Digital Business €11M, Tech €7.1M, Product €3.8M.

• Strategic priorities: double-digit revenue growth, service diversification, internationalization, and selective M&A.