Wiit (WIIT) Q4 2025 earnings summary

Executive summary

• FY2025 revenue reached €167.9 million, up 5.9% year-over-year, driven by organic ARR growth in Italy and Germany and contributions from acquisitions, with 88%+ recurring revenue and high visibility for future periods.

• Adjusted EBITDA rose 15.2% to €66.9 million, with margin improving to 39.8% from 36.6% in 2024, driven by scalability, synergies, and operational optimization.

• Adjusted EBIT increased 17.3% to €34.1 million, with margin at 20.3% versus 18.3% last year.

• Adjusted net profit grew 11.5% to €16.5 million, despite a higher tax rate due to the absence of prior year one-off Patent Box benefits.

• Multi-year order backlog as of January 1, 2026, stood at €260.1 million, supporting high revenue visibility.

Financial highlights

• ARR reached €136.6 million, up 7.9% year-over-year, representing 88.7% of total revenue.

• Adjusted net debt stood at €156.3 million, excluding IFRS16 and including treasury shares; leverage ratio improved to 2.6x adjusted.

• Cash and cash equivalents at year-end were €63.7 million, up €48.2 million from the prior year.

• Cash CapEx reduced to €24 million, with maintenance CapEx at €13.3 million and growth CapEx at €10.7 million.

• Financial income and expenses totaled €9.8 million, mainly due to bond loan interest.

Outlook and guidance

• 2026 revenue expected around €182 million, with EBITDA consensus at €73 million and cash CapEx in line at €34 million, barring additional Broadcom-related investments.

• Backlog increased to €260.1 million as of January 1, 2026, indicating strong future revenue visibility.

• Management expects continued growth in cloud services, focusing on hybrid cloud, cybersecurity, and value-added services.

• Germany expected to see low single-digit growth in 2026 despite a €5 million contract churn, fully compensated by new bookings.

• Switzerland targeted for accelerated growth via M&A to reach €30 million ARR.