SSH Communications Security Corporation | Stock Exchange Release | July 17, 2025 at 09:00:00 EEST
Net sales increased by 5.7% in Q2, EBITDA 0.4 million
April-June 2025:
- Net sales totaled EUR 5.4 million (EUR 5.1 million)
- EBITDA was EUR 0.4 million (EUR 0.5 million)
- Operating loss was EUR -0.4 million (EUR -0.5 million)
- Loss for the period was EUR -0.6 million (-0.5 million1)
- Earnings per share was EUR -0.03 (EUR -0.021)
January-June 2025:
- Net sales totaled EUR 10.8 million (EUR 10.1 million)
- EBITDA was EUR 0.6 million (EUR 0.7 million)
- Operating loss was EUR -1.5 million (-1.2 million)
- Loss for the period was EUR -2.1 million (-1.3 million1)
- Earnings per share was EUR -0.13 (EUR -0.071)
Operating cash flow was EUR -0.6 million (EUR 0.2 million). The equity ratio was 55.2% (50.4%1). Liquid assets including short-term liquid investments were EUR 2.0 million (EUR 2.1 million).
Key Figures
| EUR million | 4-6/2025 | 4-6/2024 | Change % | 1-6/2025 | 1-6/2024 | Change % | 1-12/2024 |
| Net sales | 5.4 | 5.1 | 5.7 | 10.8 | 10.1 | 6.8 | 22.2 |
| EBITDA | 0.4 | 0.5 | -12.3 | 0.6 | 0.7 | -13.2 | 3.4 |
| % of net sales | 7.7 | 9.3 | 5.7 | 7.0 | 15.5 | ||
| Operating profit/loss | -0.4 | -0.5 | 10.7 | -1.5 | -1.2 | -28.7 | -0.3 |
| % of net sales | -7.6 | -14.6 | -13.7 | -11.4 | -1.2 | ||
| Profit/loss before taxes1 | -0.6 | -0.6 | -9.8 | -1.8 | -1.4 | -36.4 | -0.6 |
| Profit/loss 1 | -0.6 | -0.5 | -17.5 | -2.1 | -1.3 | -61.9 | -0.8 |
| Return on equity, %1 | -24.39 | -14.04 | -8.7 | ||||
| Return on investment, %1 | -17.82 | -11.84 | -5.1 | ||||
| Liquid assets | 1.2 | 2.1 | -39.8 | 2.9 | |||
| Short-term liquid investments | 0.8 | 0.0 | 0.0 | ||||
| Gearing (%)1 | 6.2 | 6.6 | -6.0 | -8.9 | |||
| Equity ratio (%)1 | 55.2 | 50.4 | 9.6 | 52.8 | |||
| Earnings per share, EUR1 | -0.03 | -0.02 | -14.5 | -0.13 | -0.07 | -77.6 | -0.10 |
| Shareholders' equity per share, EUR1 | 0.21 | 0.22 | -6.8 | 0.23 | |||
| Recurring revenue, ARR | 20.0 | 19.0 | 5.0 | 20.5 | |||
| Subscription revenue, ARR | 13.0 | 11.7 | 10.9 | 12.3 | |||
| Invoicing | 4.9 | 3.7 | 34.5 | 9.3 | 8.4 | 11.1 | 22.3 |
| Deferred revenue1 | 10.9 | 10.9 | 0.0 | 13.0 | |||
| Current1 | 7.9 | 9.0 | -12.3 | 10.5 | |||
| Non-current1 | 3.0 | 1.9 | 58.3 | 2.5 |
1) The comparison period 2024 has been corrected according to IAS 8 due to adjusting interest expenses and deferred revenue. The decrease in interest cost was EUR 0.1 million for Q2 2024. Interest costs are included in financial items and the correction of the error affects profit/loss before taxes and net profit for the year, and any key figures derived from net profit.
SSH Communications Security provides alternative performance measures which are not defined by IFRS standards. Alternative performance measures should not be considered substitutes for performance measures in accordance with the IFRS. The alternative performance measures are:
EBITDA = Operating profit/loss + depreciation and amortization.
Recurring Revenue, ARR: Subscription + maintenance revenue at the end of the last month of the reported period multiplied by 12.
Subscription ARR: Subscription revenue in the last month of a reported period multiplied by 12.
Invoicing: Invoices sent during the reported period without VAT.
Deferred Revenue: Non-recognized revenue from invoiced maintenance and subscription sales.
The complete interim report is attached to this release (pdf) and is also available on our website.
Business outlook for 2025
We expect net sales to grow during 2025 compared to 2024. We estimate EBITDA and cash flow from operating activities to be positive for 2025. At the end of 2024, our Annual Recurring Revenue was EUR 20.5 million (EUR 19.3 million in 2023). Our net sales grew by 9.0% to EUR 22.2 million in 2024, and EBITDA was EUR 3.4 million in 2024.
CEO review
During Q2 we have dedicated much of our focus on the strategic partnership and financial investment agreement with Leonardo S.p.A., announced July 1st. With the agreement, we will enter into a strategic cooperation, where SSH will be acting as the Center of Excellence for Privileged Access Management and Network Security & Encryption for Leonardo. The partnership will be supported by an EUR 20 million share issue to Leonardo, making them SSH's largest shareholder with a 24.6% ownership stake, subject to approval by an extraordinary general meeting and regulatory authorities.
We are excited about this strategic partnership and anticipate significant synergies and new business opportunities by integrating our offering with Leonardo's strong presence in the Defence, Aerospace & Space and Critical Infrastructures markets. Notably, the first joint customer win, a PrivX deal with an energy company, has already been secured together with Leonardo.
For 30 years we have been protecting the critical systems of governments, institutions, major companies, finance organizations and critical infrastructures around the world with our solutions. The agreement with Leonardo combines our technological expertise with Leonardo's technologies and solutions, advanced assets and services, and domain-specific knowledge. Our common goal is to build a secure digital future in which the "never trust, always verify" principle is concretely attainable with a "Made in Europe" ecosystem.
In the second quarter, our revenue grew by 5.7% year-on-year, reaching EUR 5.4 million (EUR 5.1 million). EBITDA decreased slightly to EUR 0.4 million (0.5 million) partly due to increased spending on external services related to regulatory certifications.
Subscription sales grew by 9.5% in Q2 totaling EUR 3.2 million. License sales grew to EUR 0.2 million. A continuing shift towards subscription-based contracts reduced maintenance sales slightly. Total ARR including maintenance sales grew by 5.0% to EUR 20.0 million. Subscription ARR grew by 10.9% to 13.0 EUR million.
During Q2 professional services revenue grew by 81.2% to EUR 0.2 million (EUR 0.1 million).
We continued strong performance in APAC, with revenue growing 35.5% in Q2. We have been successful with our strategy to grow through partners, and in the second quarter we won multiple new customers with them, including an electronics company in Indonesia, banks across the region, a defence technology operator, an energy market authority, a semiconductor manufacturer, and an Asian ministry of defence.
We released version 3.1 of NQX, our quantum safe solution for network security. This new release includes latest post quantum technology and other features to improve supply chain and operational security. The new version is in process to receive certifications for confidential level, and for NATO and EU restricted approvals.
We expanded our SalaX Secure Messaging with a highly secure cloud service offering. We also successfully qualified SalaX interoperability with and availability for mission critical Public Safety Networks. Additionally, we launched a free trial campaign for SalaX Secure Messaging to create more demand, and the first installations have started.
PrivX continued to make solid progress, achieving a 15.1% growth year-on-year. During Q2 we won multiple new customers for PrivX, including a major global automation integrator.
In the second quarter, we announced that PrivX is among the first PAM solutions to achieve Federal Information Processing Standard (FIPS) 140-3 certification. U.S. federal procurements will soon require FIPS 140-3 certification, and it enhances our competitiveness not only in the North American market but also globally given its alignment with the international standard ISO/IEC 19790 and its global recognition.
The strategic partnership with Leonardo S.p.A. is a pivotal moment for SSH, a major milestone coinciding with the 30-year anniversary of the invention of the SSH protocol and the founding of the company. Becoming backed with the capabilities of a strong industrial partner, and additional financial resources, we see an opportunity to expand business especially in our earlier announced strategic growth areas of Defence, Critical Infrastructures, Public Safety and Manufacturing OT Security.
Helsinki, July 17, 2025
SSH COMMUNICATIONS SECURITY
Board of Directors
Rami Raulas
CEO
For further information:
Rami Raulas, CEO, tel. +358 50 331 1741, email Rami.Raulas@ssh.com
Michael Kommonen, CFO, tel. +358 40 183 5836, email Michael.Kommonen@ssh.com
Distribution:
Nasdaq Helsinki Ltd.
Major media
www.ssh.com
Disclaimer:
The contents of this report are provided by SSH Communications Security and its third-party content providers for your personal information only and do not constitute an offer or invitation to purchase any securities nor does this report provide any form of advice (investment, tax, legal) amounting to investment advice nor make any recommendations regarding particular investments or products. SSH Communications Security does not provide investment advice or recommendations to buy or sell its shares or the shares of others. If you are interested in investing in SSH Communications Security, please contact your financial adviser for further details and information. Past performance of SSH Communications Security shares is not indicative of future results. EXCEPT AS PROVIDED BY APPLICABLE COMPULSORY LAW SSH COMMUNICATIONS SECURITY EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED. AS TO THE AVAILABILITY, ACCURACY, OR RELIABILITY OF ANY OF THE CONTENT PROVIDED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSED, OR AS TO THE FITNESS OF THE INFORMATION FOR ANY PURPOSE.
