Westpay (WPAY) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 increased by 5% year-over-year to MSEK 17.5, with recurring revenues up 11% to MSEK 12.6, now 72% of total sales.

• EBITDA for Q3 rose 158% to MSEK 4.1, and EBIT turned positive at MSEK 1.8 compared to -0.8 last year.

• Net earnings for Q3 were MSEK 1.6, a turnaround from a loss of MSEK -1.4 in Q3 2024.

• Year-to-date (Jan–Sep 2025), net sales grew 12% to MSEK 53.1, with EBITDA up 258% to MSEK 9.5 and net earnings at MSEK 2.4 versus a loss of MSEK -6.4 last year.

• Annual Recurring Revenue (ARR) reached MSEK 50.5, up 11% year-over-year, reflecting strong SaaS transformation and performance visibility.

Financial highlights

• Gross margin for Q3 was 89%, up from 82% in Q3 2024.

• Recurring revenues made up 72% of Q3 net sales and 69% for the nine-month period.

• Cash flow from operating activities in Q3 was MSEK -3.1, mainly due to increased receivables and inventories.

• Cash and cash equivalents at period end were MSEK 0.9, with available liquidity of MSEK 3.9.

• Equity ratio improved to 33% from 14% a year ago.

Outlook and guidance

• Management is confident liquidity and operations are secured for at least the next 12 months.

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