Vercom S.A (VRC) Q1 2025 earnings summary

Executive summary

• Achieved fully organic EBITDA growth of 23% year-over-year in Q1 2025, aligning with 2025 targets.

• Net income increased by 38% year-over-year, supported by operating leverage and lower financing costs.

• Revenue for Q1 2025 reached 58,517k PLN, up 5.9% year-over-year from 55,238k PLN.

• Customer base grew by 15% year-over-year, adding 12,900 clients to reach 98,000.

• The company operates in the CPaaS segment, providing cloud-based communication services.

Financial highlights

• Gross profit reached PLN 59m, up 16% year-over-year, with margin improvement of 4.5 percentage points.

• Adjusted EBITDA was PLN 29m, up 23% year-over-year, with a 4 percentage point increase in margin.

• Net income totaled PLN 23m, up 38% year-over-year, with a net profit margin of approximately 21%.

• Gross profit on sales rose to 26,879k PLN from 20,911k PLN year-over-year.

• Free cash flow margin stood at 18%, with a 76% EBITDA to FCF conversion rate.

Outlook and guidance

• Ambitious target to maintain 20%+ growth dynamics through 2025-2028.

• Aiming for over PLN 300m total EBITDA by 2028, including organic and M&A contributions.

• New ESOP sets organic EBITDA targets rising annually from PLN 55m in 2025 to PLN 230m by 2028.

• New incentive program for 2025–2028 ties share awards to EBITDA targets, with 2025 goal set at 135,000k PLN.