Hi all. Welcome to this 2025 annual results for WALLIX. We have a full presentation today to talk about the company in a nutshell, to jump into the figures with Amaury Rosset , and after to spend some time on our outlooks and perspectives for 2026 and later. As you know, we are in a world with a complex situation, more wars, more uncertainty. Of course, as you probably could understand, cybersecurity is more than ever a key challenge, and something which is not an option, just a must-have in all our customers' and organizations' personal digital connections. For us, it is the time where we are fully committed in bringing full support to our teams, our partners, our customers to resist against the cyber attacks. As you know, WALLIX is a wall under Linux, based on Linux.
We have made this choice from the beginning to be independent on our technology usage. We are fully committed in a world where WALLIX is becoming the European leader in identity and access cybersecurity solutions. We have now 3,900 active contracts at the end of 2025. These contracts generated EUR 41 million of revenue last year in 100 different countries, which are covered by channels of resellers, integrators, value-added distributors or managed security services providers established in these different countries and certified, trained to deploy our solutions in the organization of our customers. The capacity of WALLIX through these 350 resellers generates a full addressable market of more than EUR 1 billion revenue, mainly in Europe, Middle East and Africa, in India, in the non-aligned countries, which are interested in acquiring alternative solutions for their information system.
71% of our business is today recurring, which is important in this uncertainty as it brings a lot of visibility to our business in the future and our revenue generation in the future. We are 250 employees in 16 different countries, and we are a tech company which is investing through innovation process. We have three R&D centers in France and in Spain to sustain our innovation development. WALLIX is not only a software editor. WALLIX proposes also a particular vision on the digital technologies, where we feel freedom, independence, and autonomy are key. We have chosen to base our technology on Linux and open source components at the beginning. This brings us a full capacity to be free on innovation and to be independent from any third-party patents or solution.
We try to keep this independence, this freedom to offer it to our customers and allow them to choose either performant solution or capacity to keep autonomy for their digital and industrial environment protection. WALLIX is not only bringing the performance, WALLIX is bringing a capacity to its customers to move freely in a more secure digital world. How? By delivering a high-end portfolio of solutions to protect identity of our customers, identity of their employees, customers, external and internal providers. Their ecosystem in general to protect, to deliver secure access in all their organization, and keep agile in a digital world. Finally, to govern this access with focusing particularly on what we call the privileged access. WALLIX is the European specialist of privileged access. The privileged access are the access to critical infrastructures and sensitive data in the environments of the enterprise.
This privileged access are usually considered as the key of the digital kingdoms. The portfolio of WALLIX has been recognized by the main analysts of the market in North America, in Europe, Middle East and Africa, and all over the world through Gartner, KuppingerCole, and many other analysts. Another particularity, differentiation of our portfolio is to certify our solution in France by ANSSI, but also in Germany by BSI and soon in Spain by INCIBE. It is important because we have chosen to keep transparent, to offer a solution which is fully transparent for the customers as it is performing and bringing the protection high-end capacity. So high level of transparency, high level of performance are the two basics of our software portfolio. Our SaaS solutions are also ISO 27001, which gives us full alignment to the worldwide standard in term of service and software solutions.
WALLIX has been recognized by the main analysts, but particularly by Gartner, where we are a part of the Magic Quadrant 2025 for the third consecutive year. We are the only European company which is present in this Magic Quadrant as a PAM visionary. A PAM visionary means that the company has this ability to anticipate the market and innovation trends. We are continuously improving the quality of our features and innovation, delivering more features to the customers. This has been proven once again last year when we have decided to acquire, for example, Malizen in the fourth quarter of 2025 to bring and to integrate the artificial intelligence technologies at all the level of the company. It is important for us to be fully AI engine to deliver our solutions and to be more competitive.
Gartner also highlights our particular positioning on securing remote access, which is a new standard all over the world since the COVID. We have also solution which are fully designed to protect, to meet the industrial challenge in our customers' environments and networks. Something new in 2025, our proximity to the customers and the quality of our customer success has been pointed out by Gartner. It is particularly true when you consider what we call the Gartner Peer Insights, which is not the Magic Quadrant, but the Magic Quadrant designed directly by the customers who consider WALLIX as one of the voice of customers, where we are in the top three worldwide, top three in Europe, Middle East, and Africa, our historical market. Who is using WALLIX solutions?
We are present in more than 3,900 different projects for customers in all sectors, all over 100 countries with small, medium-sized, or large enterprise in various sectors. Perhaps if we try to design the typical customer, typical user of WALLIX solutions, it is a medium-sized company, or it is a part, the periphery of large organizations, where critical assets have to be protected. We are also particularly present in the critical sectors, in the sectors where cybersecurity is key for the activity. Let's talk about the figures now. Before giving the mic to Amaury, I want to come back to the KPIs which are coming from our 2025 delivery. They are remarkable on many aspects, but perhaps we can begin by the annual recurring revenue. At the end of 2025, we are over EUR 30 million, with more than 29% of growth during the full year.
Our turnover are close to EUR 41 million revenue at the end of the year. One important KPI for us is our productivity, which has come over EUR 165,000 . It is important because, as you know, when we go over EUR 150,000 per employee, we are in a profitable profile. So it is important to have been able to overachieve this turnover per talent in 2025. The performance of the operational end results have raised over EUR 5 million in 2025. This allows us, at the end of the year, to deliver a positive free cash flow over EUR 1 million, which is, of course, the key performance for us. WALLIX generated cash in 2025, which will be important now that we enter in a new period of growth, and to deliver our vision 2030. Now I give the mic to Amaury for the other figures.
Thank you, Jean-Noël. If we focus first on recurring revenue, the trajectory is very clear. A very steady growth of around 30%. Semester after semester, growth has remained consistently at a very high level, and this dynamic made it possible to reach nearly EUR 32 million in annual recurring revenue at the end of the year. This is a very strong KPI for WALLIX, because it reflects both the loyalty of our customers and our ability to generate sustainable growth. In other words, the business model is now based on a solid recurring basis, which is the main driver of our future growth. If we look at the turnover of the company, the trajectory is very solid as well.
In 2025, WALLIX crossed the EUR 40 million threshold in consolidated revenues for the first time. This is a very large share of recurring revenues, which represent now more than 70% of total revenue. This is based mainly on two drivers. First, the quick growth in subscriptions, and on the other hand, maintenance, which today constitutes a very stable base of revenue. Some customers continue to favor perpetual licenses, which represent about 24% of our revenues, with a growth close to 12%. Finally, services remain stable at around EUR 2 million. So we have a business model which is now recurring, solid, and very predictable. One of our key indicators of our operational effectiveness that Jean-Noël just mentioned is the revenue per employee, which we call the revenue per talent ratio. For several semesters, we have been indicating that a major inflection point was around EUR 150,000 in turnover per employee.
In 2025, the threshold has now been exceeded, where we reach more than EUR 165,000 in turnover per talent. This reflects the improvement in the organization's productivity in a context where the workforce remained broadly stable over the year. We should also mention that this KPI increased by more than 54% in the last three years. A year ago, one year ago, the operating profit was around EUR -5.7 million. Today, if we neutralize some exogenous and non-modelable elements, we reach the operating break-even point. This improvement is mainly due to two factors: increase in revenue, of course, and a very strong control of operating expenses, which decreased by EUR 600,000 despite the growth of the activity. In the same time, the year was impacted by around EUR 700,000 of exogenous and non-modelable elements.
These include tax measures, they are French, decided during the year in France, but also effects related to the accounting valuation of shares, which are directly dependent on the evolution of the share price, as well as exchange rate effects, which are by nature difficult to anticipate. Including these exogenous elements, reported operating income was EUR -0.8 million, which already represent a very significant improvement of EUR 5 million compared to the previous year. If we restate and restated from these non-modelable elements, the operating profit reached the operating break-even point, confirming this trajectory of structural improvement in the group's performance. When we analyze the income statement, we clearly see this improvement in operational performance. For the full year of 2025, reported operating income was EUR -0.8 million, including these exogenous items that I mentioned just before.
But above all, the half-year analysis highlights a very clear evolution in the company's trajectory. Between the first half of the year and the second half of the year, the company fully reached its operating break-even with an operating margin close to 10% in the second half of the year. That confirms that the business model is now structurally profitable. However, several factors mitigated operating performance during the year. A decrease in certain operating income linked in particular to a decrease in reversals of provisions, first. Second, an increase in depreciation and amortization expenses related to provisions related to currency effects, valuation of free shares, as well as increase in the amortization of capitalized production. Below the operating result, the financial result reflects currency effects, in particular related to the valuation of current accounts in foreign currencies, in particular U.S. dollar and Canadian dollars.
The exceptional result reflects expenses related to M&A transaction. I remember we bought Malizen in 2025 and as well of other projects that we have been studied during the year. An important point also concerns the accounting presentation of the research tax credit, which reaches EUR 1.1 million in 2025. Unlike some companies that include it in operating income, we present it as a negative tax revenue at the bottom of the income statement. This represent around EUR 1 million, which is therefore not included in the operating result. At the end, net income improved significantly from EUR -4 million in the previous year to EUR -900,000. Here again, the biannual reading is particularly revealing. We lost EUR 3 million in the first half of the year, and we gained EUR 2 million in the second half of the year.
The strong improvement in the second half of the year illustrates the financial maturity now reached by the company, a point to which we will return in the third part of the presentation with Jean-Noël, and this will give us additional leverage to continue our development while being totally self-financed. The improvement in profitability is also reflected in cash flows. If we look at the cash flow statement, there is a striking point. In 2025, free cash flow becomes positive, reaching around EUR 1 million. This free cash flow corresponds to the sum of self-financing capacity, WCR management, and recurring R&D investments. In total, these various elements resulted in an increase in gross cash of around EUR 1 million over the year, which rose above EUR 12 million at the end of the year.
This is a very solid performance, especially since the announced objective at the beginning of the year was to maintain a cash level above EUR 10 million. It is achieved. With more than EUR 12 million in cash, the group is well above this target, confirming its ability to enter in a phase of self-financing its growth. To conclude this financial presentation, let us take a quick look at the main elements of the balance sheet. On the asset side, there is, first of all, more than EUR 12 million in cash, an increase over the year. Goodwill is also slightly higher, mainly due to the external growth operation carried out in 2025 with the acquisition of Malizen. On the liability side, financial debt stands around EUR 8 million, more than 60% of this debt corresponding to convertible bonds.
The important thing to remember is that despite the increase in gross cash net of debt is also improving, reaching nearly EUR 4 million. This represents an improvement of around EUR 1 million over the last 12 months, illustrating the gradual strengthening of the group's financial structure. Beyond these great figures, we can say that the financial performance goes together with a solid extra-financial performance. We continue to be evaluated each year by two extra-financial rating agencies, which are EthiFinance and Greenly, which confirm the quality of our practices. We have very high improving scores. In Greenly new standard, WALLIX is now ranked in the top 5% of the most efficient companies, particularly in terms of controlling carbon emissions. This reflects the group's desire to ensure that the growth is sustainable and responsible. Now I give the mic to Jean-Noël to give you some perspectives in 2026.
Thank you, Amaury. Very clear. Let us talk now about the future after the present. About the perspective of WALLIX first before talking more precisely about these perspectives. It is a good time to take a step back and try to comment this new cycle of growth we have been delivering over the past three years. We have invested a lot in our previous strategic plan. We have invested a lot to transform the company, which has come from a promising start-up to become now a profitable mid-size company. It is a new profile for WALLIX. This new profile is a very clear improvement as we deliver a performance where it is a real improvement of the capacity of the company to deliver value. How did we transform WALLIX? We managed to stabilize our workforce, which increased a lot at the beginning of the plan four and three years ago.
We worked on the efficiency, the operational efficiency, the capacity of our marketing and sales teams to deliver value and to increase the revenue generated, and the capacity of our R&D and product teams to deliver value in our software. This workforce stabilization, meanwhile we increased the capacity to generate value, allowed us to gain productivity and to deliver a positive cash flow in 2025. Now we enter 2026 with a capacity to invest our part of our additional revenue in our efficiency and growth while we are going to increase our profitability in the coming years. It is a new cycle for the company, and it is a new cycle for the company where we are going to work on a new controlled investment cycle.
This new investment cycle will be focused on human capital and technological capital, and perhaps it is a good moment to talk about the ambition and the levers. In the future, our goal is to continue to deliver hypergrowth by accelerating on three levers. First, innovation and AI acceleration, the development of our business model through the three-tier model, and our capacity to strengthen our pool of talents to continue in a self-financed growth. Let's talk about innovation and AI first. We begin 2026 by launching our new WALLIX One platform. This WALLIX One platform is a new cybersecurity identity and access management platform where our customers will be able to govern all the identity and authenticate all the users having access into their information system toward their data or their industrial assets.
It's available this quarter, and it will be relevant to push to help our teams, marketing and sales teams, to increase our capacity to sign big deals, as we are going to see in the next part of the presentation. Second important evolution this year will accelerate AI usage at all the levels of WALLIX. As we announced before, we are going to launch our first software solution based on the Malizen technology after the summer 2026. This user and entity behavior analytics solution which we are about to launch is very important as our customers are accelerating their demand toward a solution which could help us to anticipate the risk of cyber attacks of human or non-human disease.
We have to keep in mind that in 2025, the major cyber attacks came from an automotive company called Jaguar Land Rover in the U.K., where they were subject to a massive cyber attack, stopping all the factories, stopping the activity of the company with a breakthrough regarding all their network of external providers and all their supply chain, more than 5,000 companies, and more than EUR 2.5 billion of losses, and a risk of collapse. Cyber attacks are very heavy when they are stopping and, I would say, breaking the information system of a company. They are evaluated around EUR 4.9 million when a medium-sized company is targeted. The risk for major accounts are up to EUR 9 million per attack.
It is, of course, key now to give the capacity for our customers to be more and more able to anticipate the cyber attacks and to stop it at the beginning before becoming a major disease. Third important lever will, as I mentioned, we are fully investing through AI in delivering new solutions in 2026. But also to prepare the future, we see in the information system of the companies more and more CIOs and project managers using AI to improve their internal process. AI agents bring uncertainty, bring new risks, which are much more important compared to human risk, as agentic systems are not stoppable sometimes and could completely break a full information system. It has been shown, for example, with Microsoft Intune. For example, the Microsoft Intune system used by a lot of companies to manage their different digital assets.
When you use some kind of agentic system taking control of Microsoft Intune, you could erase the information system of a company. We understand how agentic systems are promising for a lot of companies in term of efficiency, but bringing major risk which have to be managed and controlled. This is why we are investing in our technology to bring a capacity to identify an agentic system and to manage the rights of access of agentic systems so that they won't be able to disrupt, to disconnect the people from their information system, the companies from their digital assets. 2026 will be the year where we will invest in the capacity of our solutions to resist against the post-quantum risks. It has been fully integrated in our roadmap, and in 2027 will resist and give our customer the capacity to resist against the post-quantum threats.
About our business model. As I mentioned, we have invested a lot to transform our business model. We adopted a full RevOps model where all the revenue teams of the company and customer success teams of the company are aligned towards our customer needs. We live with our customers at the marketing side, at the marketing phase, on the sales phase, on the customer success phase, and all around the life of our customers. Historically, our customers are mid-size companies. They are local authorities, healthcare institutions, some SMEs. Around 80% of our turnover is issued from these customers today. And we cover these medium-size companies through a channel sales model, a channel of value-added resellers, value-added integrators based in 100 different countries. We are going to invest more in 2026.
We are currently deploying a new partner relationship management system with a new portal for our partners, which will be launched in April in Rome, where we propose our annual partner summit with partners coming from all over the world to discover this new PRM system and our new portal. This new portal will bring them the capacity to deploy more WALLIX solutions, to deploy a land-and-expand strategy toward WALLIX solution, and to deliver more and more value to the customers. We will give them the capacity to interact directly with our internal tools in terms of marketing automation, the pipe creation, and capacity to sign their contracts, being more and more autonomous in the future. But 2026 will also increase our headcount to cover the large companies and to be able to gain more large deals.
We'll act on these large companies' expansion, which are now generating 20% of turnovers, and where we have a lot of opportunities today, particularly for companies who are fed up with complex solutions and who need to cover their industrial assets and need to have a better return on investment, choosing a sovereign solution. So expansion in large companies. In facts, we'll strengthen our channels. We have just hired a new VP of Channel who arrived into WALLIX who onboarded in March. We'll hire more people to accelerate our positioning in Germany after the BSI certification we catched in the fourth quarter in 2025. We see a lot of opportunities.
A lot of major partners have asked us to launch a sovereign offer, and we will accelerate the partner hiring in Germany, in the DACH region, in North Europe, Sweden, Norway, Denmark, and we will strengthen our sales and channels teams in all Europe. I talked about the PRM. Perhaps I could remind you our particular OT positioning. It made 20% of our orders of new business in 2025. We will continue to invest and push our differentiators related to these particular sectors and capacity to manage industrial assets, and we will also earn benefits from the adoption in many European countries of the new regulations like NIS2, like DORA, like the LPM particular requirements in the critical sectors and infrastructures, which are really solicited today and really targeted by the governmental and cyber attacks.
Our objective this year will be to develop two global alliance with global system integrators focusing Europe, where these regulations will have a strong effect on the customer acquisition. 2026, as you understood, is a new year for us in a new cycle of development with a vision where in 2030, on the way of 2030, the customers, the partners, the market will wait for cyber champions to bring them a capacity to resist, to continue to deploy their activities in a very complex world. We will first continue our hypergrowth this year on the recurring business by working with our customer base, by tooling our partners and help them to be more and more autonomous, and we will emphasis particularly the upsell and cross-sell toward these new tools and process.
We will also earn benefits from the strong momentum of the cybersecurity market all over the non-aligned countries, markets and Europe. We will also continue to be very serious and cautious to our expense and continue to increase our productivity using AI at all the levels of the company, maintaining strict control on our OpEx and our hirings, and it will allow us to generate positive free cash flow, which will be partially invested in our organic growth. We are more than ever convinced that being a performant software editor is key in the cybersecurity space with the particularity of WALLIX to deliver a European model, a capacity for our customers to be free to innovate, to be, I would say, autonomous in term of decision, depending less and less on certain political decisions in certain countries which could transform the world into a global world.
For us, it is important to continue to build a European cybersecurity leader to manage the identity and access of our customers' environments, traveling in our customers' environment. This is the objective and the ambition of WALLIX. Thank you for having listened to our presentation. As it is not perfect, we are now listening to your questions, complete our presentation.
Thank you, Jean-Noël. Ladies.