Finland · Delayed Price · Currency is EUR F-Secure Oyj Earnings Call Transcripts
Fiscal Year 2026
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Tier 1 partnerships now cover half of the top 20 global CSPs, driving double-digit growth and expanding the addressable market to 1 billion subscribers. Embedded security and AI-driven trust solutions are central to future strategy, with a midterm target of high single-digit revenue growth and adjusted EBITA near 40%.
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Tier 1 partner growth is accelerating, led by new Verizon and AT&T deals, driving a raised revenue outlook of 7%-12% currency neutral growth. Embedded security is the main growth engine, while FX headwinds and market churn impact legacy segments.
Fiscal Year 2025
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Q4 and full-year 2025 revenue were flat to slightly negative, but cost control supported strong EBITDA margins. Growth is expected to accelerate in 2026 as new Tier 1 embedded security deals ramp up, with AI-driven products and partnerships central to the strategy.
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Low single-digit currency-neutral growth was achieved, driven by embedded services in Japan and the U.S., while direct business declined due to strategic focus. Profitability remained strong, with continued investment in AI and scam protection, and guidance for low single-digit growth and 32%-35% EBITDA margin was reiterated.
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Q2 revenue grew modestly, with Embedded segment and Japan driving growth, but overall results were below expectations due to Tier 1 partner delays and FX headwinds. Profitability declined as costs outpaced revenue, and guidance was lowered to low single-digit growth for the year.
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Revenue grew 2% in Q1, with profitability exceeding expectations due to lower OPEX. New partnerships, especially with Orange Group, are set to drive future growth, while embedded segment growth was slower than hoped. Guidance for mid-single digit growth is maintained.
Fiscal Year 2024
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Solid year-end performance driven by new Tier 1 partnerships, especially with SoftBank, and strong growth in Nordics and Asia offset partner churn in Europe. 2025 guidance targets mid-single-digit revenue growth, with Scam Protection expected to boost ARPU and revenue relevance.
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The company is targeting high single-digit growth and a 40% EBITDA margin as it expands its holistic, AI-driven security portfolio for CSPs and new verticals. Growth will be driven by deeper penetration in tier 1 partners, new SaaS offerings, and continued investment in scam protection and embedded security. Substantial untapped potential remains in current partnerships.
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Q3 saw 3.5% revenue growth and strong profitability, with direct business outperforming and multi-module adoption rising. Guidance for 2023 was narrowed, with limited Q4 growth expected and Tier 1 partnership benefits anticipated in 2025.
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Revenue grew modestly, driven by the Lookout Life acquisition, while profitability remained strong due to operational improvements. Customer churn among large partners offset gains from new product modules and higher ARPU, and guidance remains unchanged amid ongoing market uncertainties.