Norway · Delayed Price · Currency is NOK Techstep ASA Earnings Call Transcripts
Fiscal Year 2025
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Q4 marked a strategic transformation with a completed carve-out, cost reductions, and major contract wins, but revenues declined 10% year-over-year due to delayed deliveries and contract terminations. The company is now leaner, with a strong focus on profitable growth and ARR expansion in 2026.
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Q3 saw a 6% revenue decline but record-high recurring revenue and gross margin, driven by managed services and new partnerships. A strategic carve-out is set to pay off debt and sharpen focus, with strong growth expected in software and services post-transaction.
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Q2 saw improved profitability, with net gross profit up 5% and adjusted EBITDA up 64% year-over-year, despite a 7% revenue decline due to contract expirations. Strong commercial momentum, new strategic agreements, and expanding recurring revenues position the business for continued growth into 2026.
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Q1 saw stable gross profit despite a 3% revenue decline, with recurring revenue up 7% and own software up 11%. Profitability improved, new strategic partnerships were signed, and the company expects double-digit growth in recurring revenue and profitability for 2025.
Fiscal Year 2024
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Q4 saw record adjusted EBITDA, 4% revenue growth, and strong recurring revenue momentum, with double-digit growth in owned software and significant expansion in Poland. 2025 guidance remains robust, with expectations for further acceleration in recurring revenues and profitability.
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Q3 saw year-over-year growth in revenue and net gross profit, with recurring revenue contracts at record highs and strong performance in Sweden and Poland. Strategic partnerships and a focus on recurring services are expected to drive substantial growth, especially in 2025.
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Q2 saw positive adjusted EBITDA for the seventh straight quarter, with revenue growth in Norway and Poland offset by declines in Sweden. Recurring revenues and cost optimization improved profitability, while new public sector contracts and sustainability achievements support a strong outlook for H2 2024 and 2025.