Verve Group (VRV) Q2 & CMD 2025 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in Q2 2025, with adjusted EBITDA up 1% and a 28% margin, despite platform unification and integration challenges.

• Customer retention remained high at 98%, with a 22% increase in software clients, though large clients reduced spend during technical disruptions.

• Completed major in-app platform unification, enabling greater efficiency and scalability, but causing temporary revenue and margin setbacks.

• Strategic focus on ID-less, privacy-first advertising, AI-driven solutions, and continued investment in salesforce, technology, and geographic expansion.

• Demand side (DSP) activities grew 82%, while supply side (SSP) declined 3% due to technical issues; overall customer base expanded.

Financial highlights

• Q2 2025 net revenue grew 10% year-over-year to €106 million, with DSP revenues up 82% and SSP revenues down 3%.

• Adjusted EBITDA reached €29.5 million (28% margin), slightly above last year; adjusted EBIT margin was 21%.

• Free cash flow and operating cash flow were lower in Q2 due to integration costs, one-off expenses, and working capital timing.

• Cash position at quarter-end was €161 million, with net debt at €368.3 million.

• CapEx tracking toward €40 million for the year, focused on platform and expansion.

Outlook and guidance

• Full-year 2025 guidance revised downward: net revenue €485–515 million (was €530–565 million), adjusted EBITDA €125–140 million (was €155–175 million), reflecting platform unification and FX headwinds.

• Estimated €34 million revenue and €19 million EBITDA negative effect from one-off technical issues and FX.

• Q3 expected to be a transition quarter with mixed organic growth; strong organic growth anticipated in Q4.

• Mid-term targets reaffirmed: 25–30% revenue CAGR, 30–35% EBITDA margin, 20–25% EBIT margin, and net leverage 1.5–2.5x.

• Strategic focus on organic growth, with disciplined M&A for sales or regional access.