Westpay (WPAY) Q2 2025 earnings summary

Executive summary

• Net sales grew 20% year-over-year in Q2 2025 to MSEK 17.8, with recurring revenues now 70% of total sales.

• Annual Recurring Revenue (ARR) increased 20% year-over-year to MSEK 49.7.

• EBITDA improved to MSEK 2.6 from -0.7 in Q2 2024, and net earnings reached break-even from a loss of MSEK -2.9.

• Gross margin strengthened to 90% in Q2 2025, up from 83% a year earlier.

• SaaS transformation continues to drive sustainable growth and profitability.

Financial highlights

• Q2 2025 net sales: MSEK 17.8 (up 20% year-over-year); recurring revenues: MSEK 12.4 (up 20%).

• Q2 2025 EBITDA: MSEK 2.6 (from -0.7); EBIT: MSEK 0.2 (from -2.1); net earnings: MSEK 0.0 (from -2.9).

• Adjusted Q2 EBIT: MSEK 1.2 (from -2.5); adjusted net earnings: MSEK 1.0 (from -3.3).

• H1 2025 net sales: MSEK 35.6 (up 15% year-over-year); EBITDA: MSEK 5.4 (from 1.1); EBIT: MSEK 0.5 (from -3.4).

• Cash flow from operating activities in Q2: MSEK 4.4; total cash flow: MSEK 0.1.

Outlook and guidance

• Focus remains on scaling recurring revenue, expanding into new verticals, and investing in product innovation, especially AI-driven enhancements.

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

• Confident in liquidity and continued operations for at least the next 12 months.