Summary of the interim period, July–September 2025

• Net sales SEK 855 million (809), an increase of 6%
• Recurring revenues SEK 773 million (718), an increase of 8%
• EBITA SEK 235 million (248), a decrease of 5%
• EBITA margin 28% (31)
• Operating profit SEK 176 million (171), an increase of 3%
• Operating margin 21% (21)
• Cash EBIT SEK 212 million (193), an increase of 10%
• Cash EBIT margin 25% (24)
• Earnings per share before dilution SEK 2.82 (2.85), a decrease of 1%
• Cash flow from operating activities SEK 157 million (156).

Summary of the interim period, January–September 2025

• Net sales SEK 2,650 million (2,407), an increase of 10%
• Recurring revenues SEK 2,373 million (2,109), an increase of 13%
• EBITA SEK 691 million (732), a decrease of 6%
• EBITA margin 26% (30)
• Operating profit SEK 506 million (520), a decrease of 3%
• Operating margin 19% (22)
• Cash EBIT SEK 589 million (563), an increase of 5%
• Cash EBIT margin 22% (23%)
• Earnings per share before dilution SEK 7.56 (8.32), a decrease of 9%
• Cash flow from operating activities SEK 1,000 million (939)
• Acquisition of Intergrip.

Steady improvements despite continued tough environment

The third quarter has also continued to be characterized by restraint from customers and sellers of companies. They are awaiting and only a few make decisions about new investments or expansions. Despite this, our subscription-based revenues, which make up the majority of our revenue, grew organically by 6%, while total revenue decreased by 2% compared to the same period last year. As in the previous quarter, the decrease is attributable to lower transaction-based revenues, where the business unit Vitec Enova alone accounted for a decrease of SEK 50 million.

We have previously shown how growth is distributed between organic, acquired and currency impact on an annual basis, but from this report we will also show this on a quarterly basis.

EBITA for the quarter amounted to SEK 235 million compared to SEK 248 million last year, while our internal profit measure Cash EBIT, which has been adjusted for capitalizations and amortizations and is closer to cash generation, increases to SEK 212 million compared to SEK 193 million, a sequential increase for the third consecutive quarter. Both performance measures were negatively impacted by Vitec Enova’s volume reduction, reducing the gross profit for the third quarter by SEK 11 million. However, through targeted measures and business development, this impact has decreased. Vitec Enova makes despite this a positive contribution to earnings and is on a par with the Group as a whole in terms of margins.

Cash flow from operating activities follows previous years’ seasonal patterns and for the first nine months of the year it increased to SEK 1,000 million compared with SEK 939 million the year before. Debt, measured as net debt/EBITDA, amounts to 1.7 times and is at the same level as the previous quarter. We are financially well prepared for further acquisitions.

Immediately after the end of the period, the acquisition of Polish NMG, a vertical software company with products for large-scale computing and applications for smart grids, was completed. The company has a turnover of approximately SEK 100 million with good growth and earnings. Vitec is thus establishing itself in a new, seventh home market, in Poland.

Our business units continue to evolve and offer their customers mission-critical software. One of the many advantages of being part of a group entirely focused on vertical software is the opportunity to take part in the internal exchange of ideas and experiences. For many years, we have had a number of forums where this cross-fertilization takes place.

During our 40-year history, we have been through major technological shifts several times. The power of constantly sharing experiences combined with focus and great curiosity has led to us taking market shares and becoming even more efficient at every shift. With the development of AI and the opportunities it presents, we are committed to ensuring that our circumstances improve also this time. But like with previous shifts we see this as more of a continuous evolution rather than a revolution.

Every day, experiences in coding, security, testing, bug fixing, customer service, decision-making, and data analytics inspire and are shared, and discussed, to name a few. Vitec’s business units are increasingly using AI tools in their internal operations—from software development and customer support to sales and marketing—to improve efficiency, productivity and overall business impact. All of our more than 600 developers today have access to tools such as Cursor, GIThub Copilot, Claude Code, as well as a number of Large Language Models, and we see clear progress. We are also seeing a steady increase in the number of proprietary AI-based applications being rolled out to our customers through our business units, with the aim of creating new business opportunities, increasing customer value and driving innovation. Examples include AI-powered energy forecasting, automated image management in the real estate industry, as well as automated reporting of regulatory data and patient satisfaction surveys in the healthcare sector.

In the fourth quarter of 2024, we completed three major projects. They contributed to an exceptionally strong result compared to the previous corresponding quarter. The improvement in earnings was mainly driven by high sales of licenses, hardware and services. For the current year, no corresponding major projects are expected to be finalized in the last quarter.

We are confident that our long-term strategy—with a focus on organic growth, complementary acquisitions and continuous operational improvements—will continue to generate stable and sustainable earnings growth.

Olle Backman, CEO and President
Vitec Software Group