Westpay (WPAY) Q1 2025 earnings summary

Executive summary

• Net sales grew 11% year-over-year to MSEK 17.8, driven by a 17% increase in recurring revenues, now 65% of total sales.

• EBITDA rose 65% to MSEK 2.8, and EBIT turned positive at MSEK 0.3, reflecting improved profitability.

• Annual Recurring Revenue (ARR) reached MSEK 46.5, up 18% year-over-year, highlighting SaaS model scalability.

• Operating cash flow was strong at MSEK 5.6, compared to MSEK 0.4 in Q1 2024.

• Strategic partnerships expanded, notably with Paytrim, supporting bundled payment services and future growth.

Financial highlights

• Net sales: MSEK 17.8 (16.1), +11% year-over-year.

• EBITDA: MSEK 2.8 (1.7), +65% year-over-year; EBIT: MSEK 0.3 (-1.3).

• Net earnings: MSEK 0.8 (-2.1); EPS: SEK 0.01 (-0.03).

• Adjusted EBIT: MSEK -1.1 (-1.3); Adjusted net earnings: MSEK -0.6 (-2.1).

• Gross margin improved to 88% (86%).

Outlook and guidance

• Focus remains on scalable, organic growth, expanding recurring revenue, and launching SoftPOS offerings.

• Strategy leverages independence in the payment value chain and comprehensive, bank-neutral solutions.

• Long-term financial goal: 20% average annual sales growth and EBITDA margin of at least 10%.