Soluciones Cuatroochenta (480S) Q2 2025 earnings summary

Executive summary

• Revenue grew 28% year-over-year to €17.0 million in 1H25, surpassing industry growth forecasts for IT spending in 2025.

• Annual Recurring Revenue (ARR) increased 8% in six months, reaching €21.2 million.

• EBITDA rose 64% year-over-year to €1.93 million, with margin improvement across all subsidiaries.

• Net profit reached €0.95 million, nearly four times higher than the prior year, marking a record high.

• Two acquisitions (MP Services and 3ipunt) and a €2 million convertible bond issue supported growth.

Financial highlights

• EBITDA margin improved to 11.36%, up 244 basis points year-over-year.

• Net financial debt increased to €11.31 million due to acquisitions, with NFD/EBITDA TTM at 2.84x.

• Operating cash flow was €1.83 million, slightly below the previous year due to working capital changes.

• Enterprise Value rose to €59.1 million, with an EV/Sales ratio of 3.48x.

• Sales outside Spain accounted for 48% of total revenue, up from 45% in 2024.

Outlook and guidance

• Strategy focuses on increasing ARR and recurring revenue share through partner channel development and product standardization.

• Management expects to repay debt as scheduled using operating cash flow and available cash.

• First significant sales in Mexico achieved in 2025, supporting international expansion.