Morning, thank you for joining Facephi's webcast to discuss 2025 audited earnings. Joining me today, as always, is Javier Mira, the company's CEO, and Aitor D'Oxandabaratz, the company CFO. Before we begin, as we always do, some housecleaning comment. If you want to make questions, please make them in the lower right-hand corner, these questions will be answered once the presentation is over. Without further ado, let's start with the presentation. As you probably saw, Facephi had its best financial performance ever in its over 12 years of history. We had a strong revenue and EBITDA growth. We have net profit, and we have lower debt and higher profitability that brings us closer to a cash flow generation in 2026.
2025 was a turning point for the company, both from a strategic and financial point of view. From a strategic point of view, we completed the transformation from a primarily biometric vendor into a leading Artificial Intelligence-driven digital identity and fraud prevention platform. We are now integrating in our solutions identity verification, fraud prevention, and compliance into a single end-to-end solutions. Our clients with us have absolutely all of their digital security needs with us. You know, they don't need to use external vendors. From a financial point of view, our performance underscores the success of our strategy. As you can clearly see on this slide, our revenue have grown at a CAGR of 37.7% over the past five years.
More concretely, in 2025, revenues grew by almost 25% to EUR 36 million. EBITDA grew to almost EUR 11 million, net profit was of EUR 400,000 which compares very favorably with a -EUR 8.9 million profit in 2024. We are definitely in the right path. More importantly, this strong performance is set to continue in 2026. As you can also see in this slide, we are ratifying the guidance that we announced last October for 2026. This year we're expecting revenue to grow by over 28%, so we are accelerating growth versus 2025. EBITDA is expected to be maintained at similar levels, growing a little bit further to EUR 11 million or 5%.
In 2026, we will be definitely cash flow positive with an estimate of EUR 4.3 million. The expectations and the look for the company is very bright, and 2025 was the year where we definitely demonstrated it. This strong outlook is obviously supported by a growing industry. As you can see here, the identity verification market is expected to grow to reach $29 million by 2030, which represents a CAGR of over 15% over the next five years, no. Also the fraud detection and prevention market is also growing at a similar rate. The look is there, and we are definitely in the right moment to take advantage of that. Now I will pass the word on to Javier. Please, Javier.
Hello, everyone. Good morning, and thank you for sharing your time with us. First of all, thank you, Antonio, also for organizing this webcast to present the results. As Antonio has mentioned, we are in the company very happy about the performance of the 2025 audited results with quite impacting numbers in terms of revenue, the best year of the history of Facephi with a EUR 36 million revenue in invoices to our clients. Also a key point, I think, that is the EBITDA, that is raising EUR 10.5 million coming from EUR 1 million of 2024. It's a huge change and improvement for the company. The company in general, as I said, is very happy.
Later on, CFO Aitor will explain in detail some of the numbers in order you to understand exactly the performance of the company. Before that, some of you have made some questions in the past about the company's strategy for the future with the threat that we have today. All the companies, not Facephi or our sector in general, all the sectors, the threat or opportunity that we have in front of us is the AI. Well, just you to know that Facephi has been using AI in the last 12 years. It's not something that is impacting us in the last year.
At the same time, it's true that the growth of the AI and the different solutions and tools that the AI is providing to the market is a threat and is a challenge because the attacks and the fraud is getting more and more complicated. The challenge for the companies like Facephi is even more. We have to pay more attention now because we need to improve also our tools in order to protect our clients from these attackers. Now everyone can just can be a hacker, just hiring some tools. Basically we see four different vectors, verticals, let's say. One is the AI accelerates the fraud, as I said.
I mean, mule account networks or the use of generative AI in order to create synthetic identities or deepfakes is really, really common and really easy to do today. Before you need to be an engineer to develop this. Today, you just can be a user, and you can generate your own synthetic identities if you want. Synthetic identities means fake identities. Just to give you an example, before we used to use IDs in order to train the models, ID from Spain, for example. You need 300 or 3,000 in order to train the model how to verify the ID that is original. Today, you can create fake IDs, but exactly as original, and that's called synthetic identities, and in the case of the face, it's called deepfake. Obviously these tools are accelerating the fraud.
Obviously the AI is a value chain disruptor. We know that any company, especially a tech company, if you are not developing internal AI, and I don't mean using AI tools that you have on the market. Developing your own ML engines in order to produce onboarding agents or behavioral biometrics, et cetera, is very easy that the company is going to an end. You know. This is something that we really just believe really strongly. We also know about the digital-first banking. I mean, the threats on the segment, it doesn't mean that the banks are gonna stop acquiring new clients by the process of onboarding and trying to protect them. That's a demand.
The only thing is that we need to develop, as we've been doing in the last years, the best technology possible to offer to our banks and the banks to trust in the company. That even though they receive attacks almost every day, the company is providing solutions that they can trust us, and we are capable together, obviously, to prevent these frauds. With the last platform, it's something very important. We are capable to go live or to deploy the technology in weeks, not in months, because today our platform is a no or low-code orchestration, that's a very good thing. Still the KYC process is in less than 30 seconds. That's completely a huge difference between Facephi and its competitors. The regulatory escalation.
I mean, we know that the PSD3 or AI Act or many others are more and more regulated, and the companies like Facephi, we need to comply by design with all these regulations in order to provide the technology in the market and the market to accept the technology as it is, no? Next slide, please. Thank you. This is quite important, even though I explained this, I think, last time. This is, let's say, the new product or solution that we are offering. Before, at the beginning, Facephi was only a biometric provider, facial recognition for authentication, then the KYC, the onboarding process. Now, what we offer to our clients in all verticals is a 360 solution. That means we cover the whole session.
We cover since the beginning when a client wants to onboard in a bank to just opening an account. We do the identity verification using multi-biometrics. We do the liveness testing in order to see that the person is alive and is authorized. After that, we also use behavioral biometrics, or we use the mule account detection or ATO prevention in order to be capable to continuously, in real time, secure the operation with the client. Not only at the moment that he's opening the account or at the moment that he's making the authentication. All over the process that the client is using the website or the app of the bank in order to do transactions, we are all the time monitoring the operations in order to detect potential threats.
The transaction layer, also the KYT or screening and sanctions or real-time monitoring. From the biometrics that we came years ago to the 360 platform that we offer today, Facephi's in a position that no one is offering this 360 to banks in order to secure the operation. That's a key point for us for the next few years. Next slide, please. This is just basically a couple of figures in order to understand that the market is growing. Those verticals that I was talking a little bit before are growing, some of them more than others. You can see that, for example, the verticals we are talking about transaction monitoring. We are talking about ID verification, authentication and access, mule account detection, and behavioral.
The last two, mule account detection and behavioral, they are two verticals that Facephi is pushing a lot in 2025. We are completely convinced that 2026 and 2027 we are gonna have extremely good results in these two specific verticals. You can see here that the size of the market and the growth of these specific verticals are gonna be quite strong, 21% and almost 20%. That's why we're focusing on now. We've been focusing in this in the last 18 months. Now obviously we are gonna start getting some of the results. I'm happy to be here. I'm happy to try to answer all your questions after the presentation. From my side that I want to just touch the market expectations and situation.
It's over. Now I'd like to welcome Aitor in order to go more into the detail of financial report 2025. Aitor, please.
Hello. Good morning, everyone, and thank you very much for joining us and attending this meeting. Okay, it's a pleasure to share with all of you. Okay, let's go to the first slide. Okay. On the left, you can see what we have done in terms of business, so the business revenue growth over the last three years, from 2023- 2025. Well, as you can see, the company has grown very significantly. In fact, more than 40% over the last two years, okay? From EUR 25 million- EUR 36 million in 2025.
In fact, in 2025, the level, it could have been more than that in terms of a constant currency basis that later on we will have the opportunity to share, okay. On the other hand, on the right, we show the size of the business in terms of TCV. That is the updated value with the customer contracts we currently have as of the end of 2025. Where as you can see, again, the figure has nearly doubled in just two years, okay. A very amazing evolution and great for all of us, okay. Okay, next slide, please. Okay, thank you. Next slide, well, what to say?
Well, this is the, let's say, the kind of amazing growth that any CFO and any CEO wants to show and share with all of you. Well, a huge and very significant improvement in these four key financial indicators over the last two years, from 2023- 2025. In 2025, let me just underline the fact that we have also expressed the figures in constant currency terms. To remove the fluctuation in the US dollars. That is the currency, the foreign currency in we sell all our business.
The US dollar, as you know, as you probably know, opened the period at 1.04 in January 2025, and closed in December 2025 at 1.17, okay. This is why this analysis allows us to do much more properly compare in terms of the growth and productivity achieved in 2025 with what we did in prior years, okay. This is why the revenue, as you can see, is close to EUR 38 million. Also remarkable to note that our main productivities in terms of EBITDA, pay attention that EBITDA, which was in the last years around EUR 1 million, has multiplied by 10x , okay.
Well, these main beautiful productivities have come from first keeping flat our fixed cost structure, I mean, overhead and SG&A. A mainly huge improvements coming from our direct cost structure, which up to date allows us to get gross margin around 85%, 85%, compared to in average 70% in prior years.
Well, also just to say that when we say normalized EBITDA, well, and just to be able to do a properly bridge with what you will be finding in the audit, well, using the accounting format that appears in the audit, the way you get normalized EBITDA is the usual way, which is taking the operating profit plus D&A, depreciation and amortization, plus provisions related to assets impaired linked, but linked to the prior years and, of course, plus severances. Okay? We are expecting to keep this level of productivities and then this level of EBITDA for our 2026 roadmap. Okay? Great news and a very beautiful landscape. Okay.
Well, let's go to the next. Thank you. Next slide. Very briefly, just to say that we want to remark again the evolution of these four financial indicators. Well, as I said, in terms of revenue, in current currency basis, close to EUR 38 million. And just to underline in this slide, to pay attention to our investment commitments that in theory remain at the same level of EUR 4.5 million, as you can see. Each year, or at least in the last two years. They account for less and less percentage in terms of percentage of sales, or in terms of percentage of revenue.
Also to note that this highly J-curve effect. This visible J-curve effect in the free cash flow. Which allows us to reach break-even levels in 2025. As by the way, was announced previously by the CEO, Javier Mira, at the end of 2024, beginning of 2025. J-curve effect close in terms of getting break-even levels. We will be expecting to grow very significantly in 2026 as the guidance published in the last months. Let's go to the next, please. Thank you. This slide, this is the financial profile. The business needs in terms of debt profile, I mean.
I would like to note that given the very positive trends in 2024 and also in 2024, in 2025, and also in 2024, in both cash flow growth and in terms of debt reduction. Okay. In fact, on the left you can see that the ratio in terms of growth, gross financing or banking debt on normalized EBITDA has hugely decreased from 10x in 2024 to less than 1x only one year in 2025. We tend to believe that we will have no problems to close a very interesting financing deal with the financing institution and entities, banks and other.
That will definitely be adapted to our needs to support the growth. I mean, both the business growth and of course the mentioned investment that will continuing around EUR 4.5 Million or close to EUR 5 million in terms of CapEx. Okay? Well, I think that's all from my side. I'm absolutely at your disposal and available to your Q&A section that you may have.
Okay. Thank you, Aitor. Just to wrap up the financial section of this presentation, we are sharing with you some KPIs in the evolution of our revenue, as we have done in previous occasion. You can see that onboarding authentication continues to be our main sources of revenues. However, going forward, as we are offering one solution, it will be more difficult, you know, to identify specifically, you know, which part of the solution is going to be bringing most revenues. In terms of region, you can see that Latin America continues to represent our biggest source of revenue. The reason that it continues to grow is that, as we mentioned, in 2025, it was an inflection point.
We transformed from a primarily biometric company into a company offering, you know, additional fraud prevention solutions. It represents, you know, opportunities for upselling and cross-selling to current clients and current countries. It is also important to mention that we opened headquarters in Brazil. We have a additional presence in Brazil, in Colombia and in Peru. As we pointed out in previous occasions, we believe that the EMEA region is going to represent, you know, one of the biggest growth opportunities for the company. As you can see, that already have more than double its participation in the revenue breakdown of the company as it went from 1.3% in 2024 to over 2.7% in 2025, you know?
In terms of breakdown by sector, as we continue to strategically move into new sectors, we continue to be by far the leading company in the banking sector. It represents 91% of revenues. As you can see, we are really aggressively increasing revenue participation from other sectors such as insurance, pensions and so on. Going forward, in 2026, you should start seeing also revenue participation from other sectors such as transport, gaming and so on. The evolution is there, and it should be easier to perceive going forward. In terms of the transition from on-premise to cloud to SaaS, you know, it continues to accelerate. Cloud represents 86%, is almost twice as much as it did in 2024.
As we also pointed out in previous occasion, as we have more partners, the revenue participation from those partners should continue to grow. The percentage of revenues coming from that strategy already represents 35%, which clearly reflects in the company's better margins as this growth strategy allows us to enter new markets, new countries, and new sectors with lower capital investments on the company side, you know? These KPIs presents a very bright outlook for us, and we are very excited about it, no? To conclude the presentation and proceed to the Q&A, let me close by saying why we believe Facephi offers an compelling investment opportunity, and why we believe that you should be as excited as we are. As we have demonstrated, we are a leader in a growing industry.
We are growing well above the industry's average. Our CAGR over the past five years has been closer to 40% than to 30, while the industry's average has been of around 12%. We are definitely growing above the average. Right now we have an end-to-end solutions that covers all of our clients' data needs. We have not just been growing very aggressively over the past years, but we are expecting that growth to continue in 2026, as we have pointed out throughout this presentation. Our growth in 2026 should accelerate versus 2025. More importantly, the cash generation of the company is also going to accelerate. We should finish 2026 with over EUR 4 million of positive cash flow. This is an extraordinary picture. We are very happy with our performance.
With that, I conclude the presentation, and we can proceed into the Q&A. Okay. We will answer the questions in order. The first questions come from Bertrand. I believe that you can all read that, but basically he wants to know.
Antonio González, excuse me. I think the order is the opposite. When you see Bertrand, I think is the last question that appeared.
Okay.
It should go down.
We will answer this one first, and then I will go all the way down. Basically, Bertrand wants to know more about the competitive landscape. Are we gaining market share? Javier, would you like to take this one?
Yeah, I'll take this one. It's been a big move in the market about our competitors. The competitors we used to have three, five years ago is completely different than competitors we have today. We've seen competitors that they were quite strong in, not in banking industry, but in fintechs and other verticals in terms of the KYC. They were really strong three years ago, and today they lost completely the market. What we see is that the main difference is companies that are really accepting the AI tools in order to develop different solutions, because otherwise in six months you are out.
Companies that they didn't have their own technology, that they didn't develop the algorithms for biometrics or for different solutions in-house, they are suffering a lot because of the speed of the AI in the market is really strong. Basically speaking, the competitors that we had, if I mention five names that we have five years ago, today out of these five names, we are just considering like two that still we are competing with them in our sectors, in banking and other industry. At the same time probably it will come new one, newcomers in the next years because obviously the market is growing. Basically speaking, we are really strong with our clients and in the banking industry. I think we don't have strong competition in this vertical, in the banking.
We do have competition in other verticals like travel or fintechs or insurance, et cetera. With just the strongest companies that are applying the AI or the newcomers, normally local companies.
Okay. Thank you, Javier. The next question comes from Alain. Aitor, I believe this one is for you. He wants to know about the uncollectible receivables registered in 2025.
Yes, okay. This is about an impairment test apply on the exercise finished in 2022 and 2023. That is an eventual opinion coming from the auditors to in terms of recoverability of this account. The customer up to date is working currently with us, and this is why we tend to believe that this asset balances will be recoverable. The auditors applying the typical prudent criteria is suggesting to apply EUR 2 million as impairment. We, as I say, we think that at least EUR 1 million will be able to be recoverable.
Yes, thanks a lot, Aitor. The next questions come from Miguel. Miguel is basically asking whether there is room for additional improvements in personal expenses and OpEx. As I talked with Miguel yesterday, I will add that he, in line of this question, he would like to know where there is room for additional EBITDA margin expansion. Aitor, would you like to take this one?
Well, as I said previously in the presentation, a flat evolution, definitely, absolutely, in terms of SG&A and overhead cost, as a fixed cost. Okay, we are expecting to keep getting this kind of control on our costs. This is why our OpEx in 2026 will be no different to what we had in 2025.
Okay. Thanks, Aitor. I would also like to add that as we mentioned, in 2025, Facephi reached an inflection point. That is something that we mentioned in, when we published the accounts of 2024, when we mentioned that the company have already achieved the desired corporate structure, basically meaning that we could accelerate growth without investing so much in additional CapEx, personnel, and so on. Obviously, we will have to continue hiring, and we will have to continue investment, but at a lower pace than what revenue is expecting to grow because we already reached the structure that we desired as a startup, and now we have left the startup phase behind and we are definitely in the growth phase. The next questions come from Miguel.
Miguel wants to know about the loan that we received from Nice & Green in September for EUR 1.5 million. Why now it includes a provision that it could be converted. If converted, he believes that Nice will hold more than 30% of the company. If you want, Aitor, I can answer this one.
Well, perhaps, Javier much better than me.
Yeah, yeah. I'll take this one. What we agreed with Nice & Green in September is by the end of January of this year to pay back this EUR 1.5 million and not in shares, in cash.
Okay.
What happened is that, with the syndicate loan that we have with the five banks, with Santander, CaixaBank, et cetera, we extended the period from December to June with this. By default, the banks, they asked us to also extend the payment of the loan to Nice & Green, the EUR 1.5 million, to the same date, end of June, beginning of July. In that case, Nice & Green accepted, but the only condition is that he said, "In that case, we would like to at least to indicate that if the company, for any reason or market situation, it's interesting to capitalize this EUR 1.5 million, we can decide." It's not their own decision. It's also the company's decision.
Nice & Green prefers to pay, to receive the payment back, but it's just an option that if the company believes that is a better option to capitalize this amount, we could do it. Initially, we don't believe it's gonna happen, but it's just an option.
Okay.
Well, basically, if I might complement, it basically adds a little bit more of flexibility to the loan. Even in the hypothetical case, so for argument's sake, this loan was converted, Nice & Green will still be below 30%.
Yeah
Nice & Green now holds around 25% of the company share. If they convert this EUR 1.5 million, it will represent around 1%. It will still be far away from that 30% threshold.
Great.
Okay. The next questions come from Miguel. I believe this has already been answered indirectly. Are you still in the work with that? No, it has not been answered. Aitor, would you like to take this one, please?
Yes. Exactly 11 normalized EBITDA expected in 2026 and for a little more than EUR 4 million free cash flow. Absolutely the same. As mentioned before, CapEx will be keeping in the same level of, let's say, somewhere in EUR 4 million and a half or close to EUR 5 million. Okay. It's in our P&L because this under the Spanish general accepted accounting principle, we have to apply this income to neutralize the R&D cost. Well, it's in this way we are taking off from the P&L. Okay. Putting in the free cash flow account as a capital expenditure, as a CapEx, okay. No lower CapEx will be the same, okay.
In spite of which we will be getting, a EBITDA in, for at least EUR 11 million and more than EUR 4 million free cash flow expected.
Thanks, Aitor.
Welcome.
Next question's coming from Miguel. He is asking about the EUR 3.3 million in IT system costs. Basically he wants to know what is this EUR 3 million about.
Yeah. The strategy of the company didn't change in the last years. What we've been doing is attending to the demand on the market. Sometimes we use new technologies that instead of developing these technologies in-house, that it takes some time and obviously some investment. Before we need to try them in some clients to see if it's a really a trend, if it's something that is gonna bring in the future, interesting revenues to the company. Those years, obviously, we prefer to pay to use a third-party module or technology before we develop. The truth is that since the beginnings that we only had in-house the facial recognition algorithm many, many years ago. Today, basically the 95% of the technology that we provide to our customers are in-house developed, including, for example, the biometrics, the behavioral biometrics.
Behavior is something that we've been analyzing and making partnerships with some providers from different countries in order to present these solutions to our clients. Once we see that the trend that our customers, our banks, they really like this product, these solutions, and they want to implement, we start developing it in-house. For example, this one, we've been using in the last three years, and now we have our own algorithm for behavior algorithms and biometrics. It's something that we will keep. If tomorrow we see that there is an interesting technology that we can fast implement in our platform in order to resell to our customers to see the impact, we do it, and if it makes sense to develop it in-house, we do it.
Fantastic. Thank you, Javier. Okay. Another question from Miguel. Basically, he wants to have additional insight on growth in APAC and EMEA region. APAC, he believes is weak. EMEA is good, but not good enough.
Yeah. About that, I'll take it also. In terms of APAC, it's true that we need time, and when I say we, I'm talking more about Hancom. That is our exclusive distributor in the region. The region is tough. To get the trust of the clients is difficult. We have some banks already using our technology and some other banks in processes that they are and they have a POC in order to integrate. Hancom develop a whole team and open a new offices in Tokyo, in Japan, in order to push the sales. We believe that this 2026 is gonna be a year that should be a big change. It's taking some time to go to the market in this area, different culture, different competitors.
In order to sell the technology from Europe, from Spain in those countries, a little bit more difficult than expected, it's taking some time. It's not that we are going back, but it's taking some time. In the case of EMEA region, we started also, let's say, a couple of years ago from scratch, no market at all, the growth is really important, not as good as we expect. In the same way, it's because we have a lot of opportunities that sometimes they take some time to be closed in order to make the integration.
We believe that we came from, I think it's about EUR 300,000 in 2024, almost EUR 1 million in 2025, and we believe this year we should be around EUR 3 million-EUR 4 million, that it will be a good change, and we are on the way.
Fantastic. Thank you, Javier. Next question also comes from Miguel. I believe that this was already answered by Aitor in regards to the question of Miguel, but basically is that why EBITDA is not going to grow further in 2026 if CapEx and personal expenses are going to be flat. Aitor, would you like to complement or say something?
This evolution, in some way, is true that it's, in some ways, is a little flat in for EBITDA. You know, we're expecting 2026 numbers. Of course, not 90% of gross margin, but 85%. In terms of the calculation, for which you can get this EBITDA of EUR 11 million, is in the same way for 2025. Again, let's keep in mind that for 2026, this growth in the revenue side is getting in terms of split from three very different regions. As mentioned by Javier, EMEA, LATAM, and APAC. Very different way to contribute in terms of gross margin.
At the same time, we must be very prudent, okay. We think that if we get around EUR 45 million or EUR 46 million, probably we will be getting more than EUR 11 million. Keep in mind that behind this amount, we are putting all other income like the capitalized cost in the P&L and also the deduction tax credits, for which our auditors are reviewing and checking the criteria. I think it's prudent to say only a 5% growth for EBITDA in spite of getting EUR 45 million or EUR 46 million revenue level, okay. I think it's prudent.
Okay. Thanks, Aitor. Well, in any case, EUR 11 million of EBITDA over revenues of EUR 46 million is a very good margin, you know, for any tech company. It's an extraordinary margin, in fact, and it's always good to be flexible in terms of our own guidance. The official one is that, EUR 11 million. If it does better.
In addition, just to underline the fact that the main efforts made in our P&L cost structure has been made in 2025, coming mainly from the data cost. Once you have turnaround on this productivity program. After that, you have a more moderate evolution in EBITDA and even in cash flow. The main efforts has been made in 2025.
Fantastic. Thank you, Aitor. Okay. Another question from Miguel. Has triggered the EUR 9 million loss from previous year in the balance sheet. Can we get back to you on that one, Miguel?
I thi`nk this is Aitor, no?
Yes. Yes. I'm checking. I'm taking the audit numbers. Excuse me. EUR 9 million. Okay. Okay. I see. Right. Got it. It's nothing more than the application. If you take the same retained earnings coming from prior years, okay? In 2024 was close to EUR 9 million, okay? This is why applying the net income or the net earning in 2025 on this returning amount in 2024, okay? This is nothing more than a reclassification in the net equity chapter. Okay? I think it's clear.
Okay. Great. Thank you.
You're welcome.
The next question comes from Bertrand. The split within the partners. Well, if you mean to revenue split is, we already show the KPIs on that sense. This year is revenue is 65% coming from Facephi, 35% coming from partners, which have grown from 25% in the previous year.
Yeah. I think that the growth is quite interesting knowing that we develop a specific partner channel for the company to increase their revenue. Coming from 25% of the total to 35% of the total this year is a good number. We don't know exactly how it's gonna become in the 2026, but we believe that we should be around 40% of the total sales through this channel, but maybe it could be some surprise because it's gonna depend also on the performance of the main partners. Basically is what I think is that in the way that we wanted to do, that is to try to increase the revenue using the channel with the partnerships we have, is going well.
Especially is going well because now, as I mentioned before, the platform we have now is a no or low-code platform. We don't need integration. When you don't need integration, the sales are much easier for partners because they don't have to send any team. We don't need to send any team to the customer for months to do the integration. It's just basically speaking on plug in with the platform. It's like a black box. We believe that that's gonna help also to increase the revenues with the partners. If I have to give roughly a number in terms of percentage for this year, I would say that we should be around the 40%, maybe a little bit higher, but around the 40%.
Okay. Okay. Thank you, Javier. Okay. This question coming from Matthias. He's basically asking whether we will be moving from BME Growth to the main market in Spain.
Yeah. I can take this one too. We've been analyzing, we've been talking, we've been having several meetings with several advisors and consultants on the main markets. The company, it's ready to do the change to the main market in terms of what is necessary to do this jump. The thing is that at the same time, it's costly. There is some extra cost that the company should take, like for example, changing the accounting of the last three years because you need to be in IFRS, and we are not for the last three years. The job has to be done by one of the Big Four. We know that it's gonna be like EUR 200,000-EUR 300,000 just to do this change.
On top of that, we talked to the regulator. The regulator says that the only thing that we should change probably some of the to improve probably the board, the board members, because increasing some female boards, et cetera. We have all the information on the table. We didn't take exactly the decision right now because it's an important decision. What we are thinking is that sooner or later it's gonna happen. What we are doing is applying some of the main things they told us to do to apply this year, this 2026, in order to be ready as soon as possible. Remain listed in Euronext at this point. Yes, it's true that we don't have much liquidity there, but at this point we have investors in Euronext and we're gonna keep it if we can.
Thanks, Javier Mira. The next question has come from Ignacio. I believe this has already been answered, Ignacio, so let me take it very briefly. EMEA region more than doubled from 2024 to 2025. Based on what Javier just said, we're expecting it to go from the current around EUR 1 million to EUR 3 million, EUR 4 million in 2026. The growth in the EMEA region is going to be exponential. It's just that the sales cycle, you know, takes a little bit longer. As we already started in 2025, it should start landing and taking place in 2026. In regards to the APAC region, that was already answered. You know, it takes a long time to develop trust, brand recognition in that region, but we continue to work in that.
A question from Romain. Well, our competitions are labeling themselves as AI-driven platform. What is our competitive differentiation with them?
Well, we should go deep into the technical details, but, to be honest, everyone says AI-driven platform because if you use ChatGPT in a chat box, you can say that it's AI-driven platform. The truth is that the main difference between these specific companies that you mentioned here, like Jumio, Veriff, Entrust acquired Onfido, by the way, the approach to the client is the same. We offer basically the same with a main difference, I would say. Facephi is in-house developed technology. Jumio, Veriff, and Entrust, they are not. They use partnerships in order to integrate the technology. They are not manufacturing or producing in-house the algorithms, or they are not producing the AI tools in order to do this.
They just, basically, the second most important thing is, as I was presenting, today, we covered the three main layers of the whole session. That means KYC at the beginning, onboarding, authentication, and at the end, monitoring the whole transaction with mule accounts, behavior, et cetera. These competitors that you mentioned here, none of them have that. None of them have the behavior, for example. None of them have the mule account detection and the screening or the AML. We just compete with them in the KYC, but that's really old style. I don't believe that this is gonna be the future of these platforms. Whether you go forward to really become a fraud prevention company or just KYCs, we believe it's gonna become a commodity soon.
Thanks, Javier. Another question from Romain. Basically diversification. Most of our revenues are coming from Latin American financial services. We have been mentioning diversification for quite some time now. Well, this has already been answered before. Yes, I mean, the sales cycles, the initial sales cycles in new markets and new sectors, it takes a long time. As we have already started several months ago, it should start materializing in 2026, no? One example, it will be the EMEA region. As we mentioned, it represented, you know, 1.3% of revenues in 2024, 2.7% in 2025. Based on Javier's expectations of EUR 3 million-EUR 4 million by 2026, it should represent closer to 8%-9%. The evolution is clearly there, just taking a little bit longer than initial.
Okay, Romain, could we explain what we consider annual recurring revenue? It appears quite stable, et cetera. Well, I don't know if you want to take this one, but I can send you the description by mail. It was included in the annual accounts of 2024, and the limited review of the 2025 is in the press release at the bottom. Everyone have, you know, a very good descriptions of what we consider ARR. And basically what you are seeing now, the difference between ARR and total contract value, that you are not specifically asking it there, especially that right now that with the new solutions and the end-to-end platform, there is a lot of additional upselling and cross-selling opportunities that is not yet reflected in that number.
Next question from Well, the next several questions are coming from Romain. Profitability and cash flow generation. Well, this one have already been answered, Romain, why EBITDA is not expected to grow as much. You know, basically, you know, Aitor already includes some of the items, but basically the company also wants to have some flexibility. This last one is for you, Aitor. Is EBITDA set to become more of a cash EBITDA in 2026 or going forward?
No. In fact, in 2026, this ratio will be improving a lot due to the fact that free cash flow, not in break-even as in 2025, but will be more than EUR 4 million generating cash. Well, this ratio, free cash flow, free cash flow on EBITDA, it will be close to half times. From my point of view, profitability absolutely confirm in the same way in 2025. Cash, in terms of cash generation, for this ratio, EBITDA free cash flow or free cash flow EBITDA, absolutely stronger than the one we did in 2025.
Thanks, Aitor. However, the official guidance of the company continues to be EUR 11 million, which represents a 5% growth. The next questions come from Alain. Are we planning to increase our presence in Switzerland?
I take this one. Switzerland, like in many other markets, we are making some meetings with banks or institutions in order to see what technology makes sense to be. At the same time, it depends. It depends. When we see the opportunity that can bring the revenue in a faster way, we go. If we see the opportunity, let's say Africa rather than in Europe, we move to Africa really fast in order to get the revenue. Switzerland is a place that we have had thousands of meetings with different banks. Pricing for them is an issue, and regulation is another issue, and it's something that we have on the table, but it's not our priority number one, to be honest.
Thanks, Javier . M&A. Have we approached for potential takeover? Have we been approached, sorry, for a potential takeover? How would we react?
Yeah. The market, the M&A market has been really active lately, especially the last, I would say, two years. Yes, we are approached by companies or private equity funds that they are building big groups of identity, of fraud prevention companies. We listen to everyone that is approaching, but Facephi is in a good position now in order to grow for the next few years. We pay attention, we listen to the potential interest, but so far nothing that we really consider. Otherwise, obviously, we need to share with the shareholders. But yeah. I mean, it's been quite a big movement. On the other side, we also analyze potential companies to make a move with them in terms of acquisitions. Yeah. I mean, we pay attention.
Nothing to be clear as we had last two years ago that we were openly trying to look for an operation. Now we are more listening on our way. To be honest, you see the value of the company, the multiples of the company from the revenue, from the EBITDA point of view are really low compared with the private market. Obviously, that's an issue when you've been approached by some company that is trying to give you a number. They treat you like a public company, not like a private company. We believe that we should be in a different place the day that we want to really analyze or study a potential M&A operation. Anyway, it's something that we will share with you.
Yes. Thank you, Javier . Well, this question from Rousseau has already been addressed, where we will be willing to move. Yes, but there are some items under consideration. Next question come from Dan. Trends towards integrating platforms and embedding AI shape for your growth opportunity. Could it expand your growth opportunity established market but increase barriers to entry into newer ones? Well, I believe that we have already mentioned that. I mean, we have transformed from being just a biometric company into an AI-driven platform that are integrating all of our digital security needs of our clients. Yes, I mean, that is happening, and we are already doing it, you know.
Yes, I mean, all of those companies that have not already taken all of the necessary steps will be eventually be left out of the market. I don't know if somebody wants to add something on this one.
No, thank you, Antonio. I think it's exactly what you said. It's true that it's shaping the market, this kind of integrated platforms and AI embedded, but at the same time, I think it's creating new opportunities. In the case of Facephi, that we have already stepped into the main markets with our technology, previous technologies. Now, with this new trend of the integrated platform, I think it's a huge opportunity for us. I don't see any barrier of entry for Facephi rather than the other markets or the competitors.
Okay. Thank you. Regarding the US dollar exposure, does it make sense to hedge? Yes, the company start hedging since July this year. Sorry, since July 2025, and correct me if I'm wrong, Aitor, but we have continued to do so.
Absolutely. Right.
Okay.
That is the case. Thank you.
Okay, the last question is coming from Alain. It regards how the qualified opinion of KPMG. I guess that these issues will be again for the next year. I mean, right now, as we mentioned, we are waiting for feedback from a consultation that we did to Spanish Accounting and Auditing Institute, the ICAC. Based on that feedback, you know, we will sit down with KPMG, and we will decide, you know, what will happen going forward.
Just to add, of course, we will be more than happy to follow the instructions or the opinion of the auditor as long as this feedback that we are waiting is in that sense. What the company has decided is that the same opinion, but the other one was by Ernst & Young last year and was also the KPMG in the revision of June 30th. They just changed the criteria now because it seems that there is a new consultation on the market. What we have done is automatically ask the same consultation to the market, specifically for Facephi. Once we receive this feedback, the company, the board and accounting will act depending. It's gonna be for the next years? No, absolutely not.
Once we receive, whether the auditor will say, "Okay, in that case, it's okay with us to keep the way you are doing it," or the other way. If they say, "No, we have to change to modify this," that is affecting EUR 1 million point something to the P&L, we will do it, and for the next years, it's not gonna happen again. In any case, it's something that is not gonna be replicated in the next years.
Yes. It's basically a matter of having more clarity, certainty, and to maintain the same criteria, so it doesn't have to continue changing, you know, every time there is a limited review or audit. We will obviously get back to you.
On top of that, Antonio, on top of that, if we were to change now, but at the same time, the feedback, If you change now, you have to change the previous year, the 2024 that it was Ernst & Young audited. In that case, we will have also to change the 2024. The company what it's been doing is, "Okay, let's keep it like this until the moment that we have an official answer. With the official answer, we will act." That's it. The market accepted completely the regulator.
Okay. Fantastic. Thank you, Javier. Well, at this moment, we don't have any further questions. I hope that you like our performance for 2025 and are as excited as we are, not just about our performance in 2025, but about our outlook going forward. You know, we have been preparing the company for the past 12 years. The inflection point have already been reached, and we are ready to capitalize on that. Thank you for your time. If you have any further questions, please let me know. Thank you a lot. Have a nice day.
Thank you very much.
Bye. Bye-bye. Nice day.