Verve Group (VRV) Q1 2025 earnings summary

Executive summary

• Net revenues reached €109 million in Q1 2025, up 32% year-over-year, with 16% organic growth and a 51% increase in customers generating over $100,000 in annual revenue.

• Adjusted EBITDA grew 37% to €30 million, with a margin of 28%, and adjusted net result increased 30%.

• Ad impressions increased 24% year-over-year, and retention rate for large customers was 94% in Q1.

• Strategic focus on ID-less, AI-driven advertising and unified platform architecture to address privacy and efficiency trends.

• Uplisted to the Regulated Market of the Frankfurt Stock Exchange and refinanced bonds at lower interest rates, enhancing financial flexibility.

Financial highlights

• Net revenue reached €109m in Q1 2025, up from €82m in Q1 2024, with adjusted EBITDA at €30m (28% margin) and adjusted EBIT up 40%.

• Operating cash flow before working capital effects was €23m; investing cash flow (excluding M&A) was -€10m.

• LTM revenue reached $464 million, and LTM EBITDA $141 million.

• Net leverage ratio held at 2.5x, with interest coverage at 3.3x.

• Five-year revenue CAGR at 32% and EBITDA CAGR at 45%, with sustained attractive margins.

Outlook and guidance

• Full-year 2025 revenue guidance: €530–565 million (21–29% growth); adjusted EBITDA: €155–175 million (16–31% growth), with margins between 29–31%.

• Midterm (3–5 year) targets: 25–30% revenue growth and 30–35% EBITDA margin, aiming for €1 billion+ revenue and €330 million+ EBITDA by 2028–2029.

• Guidance range widened due to macroeconomic and FX uncertainties, especially in the U.S. market.

• Macroeconomic uncertainty and cautious advertiser spending anticipated, but programmatic shift expected to offset sectoral weakness.