Admicom Oyj's interim report 1.1.-30.9.2025
Unofficial translation of Admicom Oyj's interim report on October 9, 2025 at 8:00 AM EET. In case the document differs from the original, the Finnish version prevails.
An investor call on Admicom's Q3 results will be held on October 9, 2025 at 10 AM EET. You can register for the event via this link:?https://admicom.events.inderes.com/q3-2025/register
Figures in parenthesis refer to the comparable period in the previous year, unless otherwise stated.
July - September (Q3) summary:
Annual recurring revenue (ARR)1)?increased by 7.8% and was EUR 36.7 million (34.0).
Recurring revenue2)?increased by 8.7% and was EUR 9.0 million (8.2).
Revenue increased by 7.0% and was EUR 9.3 million (8,7).
Adjusted EBITDA3)?was EUR 3.7 million (3.6), or 39.6% of revenue (41.4%). There were no adjustments to EBITDA in the third quarter.
Adjusted EBIT3)?was EUR 2.5 million (2.6), or 27.0% of revenue (30.4%).
Earnings per share were EUR 0.37 (0.38).
Mrs. Henna Kotilainen started as Chief Strategy Officer (CSO) and member of the Group Leadership Team on September 1, 2025.
Admicom updated its financial guidance with a profit warning published on 8 October 2025.
January - September 2025 summary:
Annual recurring revenue (ARR)1)?increased by 7.8% and was EUR 36.7 million (34.0).
Recurring revenue2)?increased by 7.3% and was EUR 27.1 million (25.3).
Revenue increased by 5.5% and was EUR 28.2 million (26.8).
Adjusted EBITDA3)?was EUR 9.1 million (9.9), or 32.3% of revenue (37.0%). Adjustments to EBITDA were EUR 81 thousand (81).
Adjusted EBIT3)?was EUR 5.7 million (7.0), or 20.1% of revenue (26.3%).
Earnings per share were EUR 0.77 (0.98).
Bauhub generated EUR 1.2 million to Group's revenue and EUR 1.8 million to Group's ARR.
Mr. Simo Leisti started as Group CEO on January 1, 2025.
Admicom announced accelerating its AI solution development with EUR 2.4 million research project. Business Finland supports the project with approximately EUR 1 million funding.
In March, Admicom announced renewals to leadership model and simplifications to organizational structure. The objective of the change is to enhance operational decision-making and expedite the accelerated growth strategy phase to better serve Admicom's customers. The changes also impacted the composition of the Leadership Team from March 2025 onwards.
1) Annual Recurring Revenue = Monthly recurring revenue (MRR) at the end of the period multiplied by 12 and added with revenues from annual adjustment fees and financial statement fees during last twelve months.
2) Recurring Revenue = Monthly recurring revenue added with revenues from annual adjustment fees and financial statement fees.
3) Admicom reports Adjusted EBITDA and EBIT as alternative performance measures to improve comparability between periods. Adjustments are material items outside the normal course of business. They can include costs related to mergers and acquisitions, gains and losses from material divestments, restructuring costs, impairment losses and other unusual, one-off items
Key figures
ADMICOM GROUP (EUR 1,000 unless otherwise stated) | 7-9/2025 | 7-9/2024 | Change % | 1-9/2025 | 1-9/2024 | Change % | 2024 | |
ARR, MEUR | 36.7 | 34.0 | 7.8% | 36.7 | 34.0 | 7.8% | 35.7 | |
Revenue | 9 288 | 8 679 | 7.0% | 28 245 | 26 764 | 5.5% | 35 572 | |
Recurring revenue | 8 966 | 8 246 | 8.7% | 27 101 | 25 255 | 7.3% | 33?561 | |
Adjusted EBITDA | 3 677 | 3 594 | 2.3% | 9 121 | 9 891 | -7.8% | 12?395 | |
% of revenue | 39.6% | 41.4% | 32.3% | 37.0% | 34.8% | |||
EBITDA | 3 677 | 3 594 | 2.3% | 9 040 | 9 810 | -7.9% | 12?069 | |
% of revenue | 39.6% | 41.4% | 32.0% | 36.7% | 33.9% | |||
Adjusted EBIT | 2 509 | 2 642 | -5.0% | 5 672 | 7 044 | -19.5% | 8?561 | |
% of revenue | 27.0% | 30.4% | 20.1% | 26.3% | 24.1% | |||
EBIT | 2 509 | 2 642 | -5.0% | 5 591 | 6 963 | -19.7% | 8?235 | |
% of revenue | 27.0% | 30.4% | 19.8% | 26.0% | 23.2% | |||
Profit for the period, | 1 881 | 1 912 | -1.6% | 3 850 | 4 901 | -21.5% | 5?874 | |
% of revenue | 20.3% | 22.0% | 13.6% | 18.3% | 16.5% | |||
Earnings per share, EPS, EUR | 0.37 | 0.38 | -2.2% | 0.77 | 0.98 | -21.8% | 1.18 | |
Total balance sheet | 40 206 | 40 965 | 40 206 | 40 965 | 43 497 | |||
Employees at the end of the period | 315 | 289 | 9.0% | 315 | 289 | 9.0% | 306 | |
Return on equity, % | 23.0% | 25.8% | 15.5% | 21.8% | 19.1% | |||
Return on investment, % | 30.5% | 31.1% | 21.1% | 27.2% | 23.5% | |||
Equity ratio, % | 84.3% | 75.4% | 84.3% | 75.4% | 75.3% | |||
Net gearing, % | -21.2% | -27.0% | -21.2% | -27.0% | -15.6% | |||
Number of shares at the end of the period, 1 000 pcs 1) | 5 017 | 4 986 | 0.6% | 5 017 | 4 986 | 0.6% | 5 005 | |
Number of shares on average during the period, 1?000 pcs 1) | 5 017 | 4 986 | 0.6% | 5?010 | 4?986 | 0.5% | 4 987 |
1) In June, Admicom acquired the minority shares in its subsidiary Aitio Finland Oy through a share exchange. In the directed share issue carried out in connection with the share exchange 11,724 new shares were registered on June 6, 2025
CEO Simo Leisti:
"In Q3 2025, we delivered revenue of €9.3 million and adjusted EBITDA of €3.7 million, a margin of 39.6%. As communicated earlier, our main growth investments took place in 2023-2024 and early 2025. With operational costs now stabilizing, we are pleased to see adjusted EBITDA improving absolutely and relatively coming closer to the level of Q3 last year.
Leading indicators in core construction markets remain weak. Financial conditions for recovery have improved: business sentiment is rising, household purchasing power is strengthening, and the full impact of lower interest rates is still ahead. Yet consumer confidence is low, overall economic growth is close to zero, and the housing market recovery is incomplete.
Residential construction is unlikely to return to growth before 2027. In contrast, non-residential and infrastructure investments are picking up, with infrastructure continuing a growth path. Renovation activity has weakened again this year, and investor demand for private rental housing remains muted. The Confederation of Finnish Construction Industries RT (CFCI) expects flat or very low growth for the rest of 2025 and only modest 3.5% growth in construction value add for 2026. While construction indicators do not yet show growth, expectations for the future are improving.
The tough construction market has challenged our ARR growth against our original plans. The anticipated second-half recovery in the market did not materialize, and insolvency-related churn has remained high throughout the year. We are also not fully satisfied with our sales performance and some below plan sales bookings are not recoverable during Q4.
These are leading to downward adjustment to our original 2025 guidance range. ARR from Bauhub acquisition in December 2024 supports our growth inorganically at the end of Q3 by 5 %-points, but at year end Bauhub's ARR is calculated also in the comparative figure. Therefore, the growth according to our guidance is purely organic. Even when we still see a possibility to reach the lower end of our original guidance, we have updated our ARR growth guidance for 2025 to 6-10% and revenue guidance to 5-8%.
In this environment, we focus on what we can execute regardless of market conditions. The Ultima and accounting services billing change has progressed as planned, with the first ~400 customers transitioning in October. The positive impact of the model change is modest due to slow growth in our customers' revenue.
We continue to advance platform integration-both technically and commercially-to accelerate cross-sales within our existing customer base. New sales has been strong in the SMB segment, and in Q3 we were able to gain more than 70 new customers. Deal sizes are smaller than usual as the market currently favors cross-sales, add-ons, and complementary solutions. In the Large customer segment, we have intensified competitive activities to replace existing construction and generic financial ERPs. In Q3, we successfully won such opportunities, strengthening our confidence in gaining market share and increasing average deal size.
At the start of 2025, we implemented significant operational changes to improve sales to both existing and new customers. We also integrated our product management, support, and product development into unified teams. While this is the right way forward and enables accelerated growth, operational inefficiencies remain to be improved. In Q4, we will increase customer-facing activity, accelerate technology development to realize our platform strategy, commercialize new capabilities and product packages (including AI), and improve overall organizational clock speed. In the fourth quarter, we will also be able to complete the subsidiary mergers initiated in the second quarter, which will clarify our group structure and make us more unified towards our customers.
We are approaching the end of our 2023-2025 strategy period. We are now starting the planning for the 2026-2028 strategic priorities to concretize our next steps towards the €100M ambition. We will host a Capital Markets Day in Helsinki on 2 December. Please register for the hybrid event and join us as we present our plans for the next strategy period."
Outlook
Financial guidance for 2025 (updated on Oct 8, 2025)
Annual Recurring Revenue (ARR) is expected to grow in 2025 by 6-10%. ARR in 2024 was 35.7 million euros.
Total revenue is expected to grow by 5-8% from 2024 level. Total revenue in 2024 was 35.6 million euros.
Adjusted EBITDA is expected to be 31-33% of revenue.
Previous financial guidance for 2025
Annual Recurring Revenue (ARR) is expected to grow in 2025 by 8-14%. ARR in 2024 was 35.7 million euros.
Total revenue is expected to grow by 6-11% from 2024 level. Total revenue in 2024 was 35.6 million euros.
Adjusted EBITDA is expected to be 31-36% of revenue.
Themes affecting revenue and profitability
At the beginning of 2025, Admicom estimated that the market outlook for construction will develop positively during 2025, but considered the growth rate of the industry to be uncertain. The recovery of the market has been delayed, and in the second quarter of the year, even negative revenue growth figures were reported in Finland.
The challenging market in the construction industry is reflected in Admicom's business in many ways, even though the Company's business is clearly less cyclical than that of its customers. Bankruptcies of construction companies and challenges in solvency increase both customer churn and the use of Admicom's products. In addition, customers' revenue-based invoicing will remain at a lower level as customer growth slows down or begins to decline. The change in the billing model of Admicom's ERP system Ultima has progressed as planned, but as customer growth is slow, revenue-based invoicing will not increase significantly in the last quarter of the year.
In addition to market-driven factors, the extensive organizational and operational model reforms initiated by Admicom in 2025 are currently in a transition phase. The changes are expected to strengthen long-term growth and efficiency, although their expected positive effects have not yet been fully reflected in the third quarter sales results and the pace of product development.
At present, the pricing of the Ultima ERP system and accounting services is based on a monthly fee determined by the customer's projected revenue. If the customer's actual annual turnover deviates from the forecast, the customer will be invoiced an annual adjustment fee five months after the end of the customer's financial year. Due to the decreased customer revenue, annual adjustment fees in 2025 are expected to be approximately EUR 0.8-1.0 million, according to an estimate updated in July. The decrease in adjustment fees weakens the company's growth and profitability compared to 2024.
The billing model for Ultima and accounting services is currently being changed. In the future, the intention is to include the adjustment fees on a rolling basis into customers' monthly fees based on historical revenue. Annual adjustment fees, which are currently invoiced once a year, will be phased out. Admicom's plan is to bring existing customers within the scope of the new invoicing model gradually starting from the last quarter of 2025. For the first approximately 400 customers, invoices according to the new billing model for October were issued in September. The change will have a positive impact on Admicom's ARR from October onwards.
In connection with the acquisition of Bauhub Oü, Admicom announced the reallocation of its R&D resources to internal development. The estimated financial impact on the revenue of external software development services in 2025 is approximately EUR -0.5 million. The decision also temporarily weakens the company's profitability.
Bauhub's relative profitability is weaker than Admicom Group's, which will affect the Group's profitability in 2025. The profitability of the Finnish operations in euros is expected to remain at the 2024 level.
Due to the above-mentioned factors affecting profitability, Admicom does not aim for relatively improved profitability during 2025.
Adjustments for adjusted EBITDA are material items outside the normal course of business related to e.g. acquisitions or other one-off transactions.
Additional information
This is a summary of Admicom Oyj's Interim Report 1 January-30 September 2025. The full report is a PDF file attached to this stock exchange release. Full report is also available on the company website https://investors.admicom.fi/
Financial publications in 2026
Admicom will publish the financial statements release of 2025 approximately on January 21, 2026.
Admicom Oyj
BOARD OF DIRECTORS
Additional information:
Simo Leisti
CEO
simo.leisti@admicom.com
+358 40 059 0511
Satu Helamo
CFO
satu.helamo@admicom.com
+358 45 633 7710
Certified Advisor:
Oaklins Finland Ltd
+358 9 6129 670
Admicom Oyj
Founded in 2004, Admicom is a pioneer in digitalisation of the construction industry. We utilise our expertise by developing software solutions covering the entire construction value chain as well as services supporting our customers' operations. Our understanding of the operating methods and digitalisation needs of the construction industry is strong, and our goal is to significantly enhance the productivity and quality of operations in the construction industry through our software.
Our ERP solution offers the construction industry the only comprehensive solution in Finland that serves the management of companies' operations, finances and projects through one seamless solution. Our project management product suite provides industry-leading solutions for managing the entire lifecycle of a building.
Our company has around 300 employees in Finland, in Jyväskylä, Helsinki, Tampere, Oulu, Seinäjoki and Turku, as well as in our office in Tartu, Estonia. More information:?www.admicom.com.
Admicom's press releases and financial reports:?https://investors.admicom.fi/releases-and-reports/
