18.7.2025 08:00:00 EEST | Digital Workforce Services Oyj | Half year financial report
Half year financial report July 18, 2025 at 8am EEST
Half Year Financial report, January 1 - June 30, 2025 (unaudited)
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
CONTINUOUS SERVICES REVENUE GREW BY 8% IN THE FIRST HALF, PROFITABILITY IMPROVED IN THE SECOND QUARTER
The effects of the cost-saving measures implemented in the first quarter resulted in improved profitability in the second quarter. The company's continuous services continued to grow. The revenue from professional services decreased in the first quarter due to the impact of a few large individual projects. The company continued its strategic investments, particularly in healthcare business and artificial intelligence solutions.
April-June 2025:
- Revenue was EUR 7.1 (7.0) million and improved by 1.6 %.
- EBITDA was EUR 0.4 (0.2) million and adjusted EBITDA EUR 0.4 (0.2) million.
- Operating profit was EUR 0.2 (0.1) million.
- Revenue from Continuous Services was EUR 4.5 (4.3) million and increased by 3.4%. The percentage of revenue was 63.2 % (62.2 %).
- Revenue from Professional Services was EUR 2.5 (2.6) million and decreased by -1.4 %. The percentage of revenue was 36.8 % (37.8 %).
- Earnings per share (EPS) amounted to EUR 0.02 (0.01).
- At the end of the reporting period, cash and bank receivables and other liquid assets were at EUR 9.1 (11.5) million.
- The number of employees at the end of the reporting period was 179 (176) and the average number of employees was 174 (177).
January-June 2025:
- Revenue was EUR 13.5 (13.7) million and decreased by -1.0 %.
- EBITDA was EUR -0.8 (0.5) million and adjusted EBITDA EUR -0.1 (0.5) million.
- Operating profit was EUR -1.0 (0.3) million.
- Revenue from Continuous Services was EUR 8.9 (8.3) million and increased by 7.5%. The percentage of revenue was 66.1 % (60.9 %).
- Revenue from Professional Services was EUR 4.6 (5.3) million and decreased by -14.3 %. The percentage of revenue was 33.9 % (39.1 %).
- Earnings per share (EPS) amounted to EUR -0.10 (0.03).
- At the end of the reporting period, cash and bank receivables and other liquid assets were at EUR 9.1 (11.5) million.
- The number of employees at the end of the reporting period was 179 (176) and the average number of employees was 173 (177).
Other events during the period
- Company announced on January 3, 2025 that it appoints Lago Kapital as liquidity provider.
- Company announced on January 7, 2025 the appointment of Antti Karjalainen, M.Sc. (Eng.) and M.Sc. (Econ.), as Chief Technology Officer (CTO) and a member of the Management Team.
- Company announced on January 14, 2025 that Mikko Lampi M.Sc. (Eng.) has been appointed as Chief Operating Officer (COO) and member of the Management Team. Mikko Lampi succeeds Tuomo Sievilä, who has decided to leave his position as Head of Customer Operations and member of the Management Team to continue his career outside Digital Workforce. The changes were effective from 15 January, 2025.
- Company announced on February 5, 2025 a dividend policy to support the company's profitable growth strategy. In the future, the company aims to pay a dividend of at least 30% of the profit for the financial year.
- Company announced on March 26, 2025 that CFO Heini Kautonen has resigned from the company to pursue a career outside the company. She will continue as CFO and member of Management Team until end of May 2025. The search for a new CFO will start immediately.
- Company announced on April 25, 2025 that based on the authorization given by the Annual General Meeting on 10 April 2025, the Board of Directors of Digital Workforce Services Plc has decided to start the acquisition of the company's own shares. The maximum number of shares to be acquired is 110 000 which corresponds to approximately 1 per cent of the company's shares. However, the amount used for acquiring shares will be at most EUR 200 000.
- Company announced on April 25, 2025 that it will terminate the LP market guarantee signed on 3 January 2025 with Lago Kapital Oy for the period of the acquisition of treasury shares. The LP market guarantee is valid until 9 May 2025 and will be extended again after the completion of the acquisition of own shares.
- Company announced on May 30, 2025 the appointment of Laura Viita, M.Sc. (Econ.), as Chief Financial Officer (CFO) and a member of the Management Team, effective 1 September 2025.
Outlook for 2025 (unchanged)
Digital Workforce's full-year 2025 revenue is expected to be higher than in 2024 and adjusted EBITDA is projected to improve compared to 2024.
Financial targets for the strategy period
1. Growth: The company aims for an annual revenue of EUR 50 million in 2026. Revenue of approximately EUR 40 million is expected through organic growth and approximately EUR 10 million through inorganic growth. The share of strategically important continuous services is aimed to increase to over 70% of revenue during the strategy period.
2. Profitability: The company aims to reach an adjusted EBITDA level of over 15% by the end of 2026
Key figures
1 000 euros | 4-6/2025 | 4-6/2024 | Change % | 1-6/2025 | 1-6/2024 | Change % | 2024 |
Net sales | 7 064 | 6 954 | 1.6 % | 13 527 | 13 663 | -1.0 % | 27 256 |
Professional Services net sales | 2 597 | 2 632 | -1.4 % | 4 581 | 5 343 | 14.3 % | 9 981 |
Continuous Services net sales | 4 467 | 4 322 | 3.4 % | 8 946 | 8 320 | 7.5 % | 17 275 |
Continuous Services' share of net sales | 63.2 % | 62.2% | 66.1 % | 60.9 % | 63.4% | ||
Gross profit | 2 642 | 2 641 | 0.03 % | 3 767 | 5 056 | -25.5 % | 9 525 |
% of net sales | 37.4 % | 38.0 % | 27.8 % | 37.0 % | 34.9 % | ||
EBITDA | 401 | 204 | 93.6 % | -802 | 492 | -262.9 % | 612 |
% of net sales | 5.7 % | 3.0 % | -5.9 % | 3.6 % | 2.3 % | ||
EBITDA adj. * | 401 | 204 | 93.6 % | 79 | 492 | -84.0 % | 988 |
% of net sales | 5.7 % | 3.0 % | 0.6 % | 3.6 % | 2.3 % | ||
EBIT | 309 | 113 | 174.2 % | -985 | 305 | -422.6 % | 268 |
% of net sales | 4.5 % | 1.6 % | -7.3 % | 2.2 % | 1.0 % | ||
Net income | 220 | 141 | 56.2 % | -1 097 | 323 | -440.1 % | 590 |
EPS, eur | 0.02 | 0.01 | -0.10 | 0.03 | -0.05 | ||
Capital expenditure | -665 | -172 | -609 | ||||
Operating cash flow | -2 796 | -1 192 | 195 | ||||
Net debt | -8 590 | -10 718 | -8 590 | -10 718 | -12 199 | ||
Net debt ratio, % | -67.3 % | -72.8 % | -67.3 % | -72.8 % | -82.2 % | ||
Equity ratio, % | 72.0 % | 73.6 % | 72.0 % | 73.6 % | 72.9 % | ||
Personnel at the end of the period | 179 | 176 | 179 | 176 | 175 | ||
Average number of personnel | 174 | 177 | 173 | 177 | 178 |
* The EBITDA adjustment consists of restructuring costs in 2025.
CEO Jussi Vasama:
I am very pleased with the results of the measures taken in the first quarter and the profitability improvement in the second quarter. In addition, continuous services businesses grew in the second quarter. Although substantial uncertainties in the international economy and trade, as well as the general weakness of the IT services market, continued throughout the reporting period, we were able to win several significant new customers and sign contract extensions with existing customers in the second quarter.
Especially in the healthcare sector, the progress of large ongoing delivery projects was in line with forecasts, which improved the results of the professional services business in the second quarter. A significant portion of the new acquisitions and extensions contributed to the growth of the healthcare business, providing a solid foundation for continued industry growth throughout the financial year.
We secured a significant contract extension with our long-term customer in North America, while maintaining a somewhat more cautious approach to this market due to its volatile and unpredictable operating environment.
We continued to develop and sell healthcare pathway automation solutions for different use cases in line with our strategy. The company has a good opportunity to expand on the success achieved in healthcare in the Nordic countries, especially in the UK, where the government announced in June an additional investment of approximately £10 billion in technology utilization and digital transformation.
Our investments in AI agent-based solutions that revolutionize knowledge work accelerated significantly. We created entirely new solutions based on AI agents to address our customers' most complex business challenges and use cases. In addition, we launched the Agent Workforce solution, which combines generative AI and deep industry expertise, which in the first phase will enable revolutionary changes to insurance companies' demanding claims processing processes and practices.
The second quarter's operational development in line with our strategy, successful new sales, and improved profitability provide a strong foundation for the second half of the year. The number of sales projects is clearly higher than in the previous year, not only in healthcare, but also in the manufacturing industry and the banking and insurance sectors. We collaborate closely with several of our technology partners on solutions that utilize AI agents, among other initiatives. This will also support the company's future strategic development.
This is a summary of Digital Workforce Services Plc's Half Year Financial Report 2025. The complete report is attached to this release and available at: https://digitalworkforce.com/investors/releases/
Helsinki July 18, 2025
Digital Workforce Services Plc
Board of Directors
For further information. please contact:
Jussi Vasama, CEO, Digital Workforce Services Plc. Tel. +358 50 380 9893
Certified advisor?
Aktia Alexander Corporate Finance Oy. Tel. +358 50 520 4098
About Digital Workforce Services Oyj
About Digital Workforce Services Plc
Digital Workforce Services Plc is a leader in business automation and technology solutions. Its Outsmart platform and services, including Enterprise AI Agent solutions, empower organizations to transform knowledge work, reduce costs, accelerate digitalization, enhance customer experiences, and strengthen their competitive edge. Over 200 large international organizations rely on the company's services to drive transformation through automation. Digital Workforce has particular expertise in automating healthcare and social care pathways, advancing long-term condition follow-up, improving patient safety, and enhancing the productivity of healthcare professionals. Founded in 2015, Digital Workforce employs over 200 business automation specialists across the US, UK & Ireland, and Northern and Central Europe. The company is listed on the Nasdaq First North Growth Market Finland.
https://digitalworkforce.com
