Qt Group Plc, Stock exchange release, October 30, 2025 at 1:00 pm EET
This release is a summary of Qt Group Plc's Interim Statement for January-September 2025. The complete report is attached to this release as a PDF file, and it is also available on the company's website at www.qt.io/investors
Third quarter 2025: Comparable net sales on previous year's level
July-September 2025
- Net sales decreased 3.4 percent to EUR 40.7 million (EUR 42.2 million). The effect of exchange rates on the comparison period's net sales was EUR -1.4 million and at comparable exchange rates, net sales decreased by 0.2 percent.
- Operating profit (EBITA) was EUR 4.3 million (EUR 10.3 million) or 10.5 percent (24.5 %) of net sales
- Operating profit (EBIT) was EUR 2.3 million (EUR 8.3 million) or 5.6 percent (19.7 %) of net sales
- Earnings per share were EUR 0.06 (EUR 0.30).
January-September 2025
- Net sales decreased 1.0 percent to EUR 139.2 million (EUR 140.6 million). The effect of exchange rates on the comparison period's net sales was EUR -2.6 million and at comparable exchange rates, net sales increased by 0.9 percent.
- Operating profit (EBITA) was EUR 24.4 million (EUR 39.8 million) or 17.5 percent (28.3 %) of net sales
- Operating profit (EBIT) was EUR 18.3 million (EUR 33.8 million) or 13.2 percent (24.0 %) of net sales
- Earnings per share were EUR 0.52 (EUR 1.13).
The figures in brackets refer to the comparison period, i.e., the corresponding period in the previous year. The percentage of change in net sales at comparable exchange rates is calculated by translating the net sales from the comparison period 2024 with the actual exchange rates of the reporting period 2025 and by comparing the reported net sales in 2025 with the calculated 2024 net sales at comparable exchange rates.
Key figures
| EUR 1,000 | 7-9/2025 | 7-9/2024 | Change, % | 1-9/2025 | 1-9/2024 | Change, % | 1-12/2024 |
| Net sales | 40,722 | 42,176 | -3.4% | 139,182 | 140,583 | -1.0% | 209,063 |
| Operating profit (EBITA) | 4,284 | 10,330 | -58.5% | 24,356 | 39,816 | -38.8% | 71,199 |
| EBITA, % | 10.5% | 24.5% | 17.5 % | 28.3 % | 34.1% | ||
| Operating profit (EBIT) | 2,277 | 8,323 | -72.6% | 18,334 | 33,794 | -45.7% | 63,169 |
| EBIT, % | 5.6% | 19.7% | 13.2 % | 24.0 % | 30.2% | ||
| Return on equity, % | 0.8% | 5.6% | 7.1 % | 21.0 % | 38.1% | ||
| Return on investment, % | 1.3% | 6.9% | 8.9 % | 24.5 % | 43.4% | ||
| Interest-bearing liabilities1 | 7,058 | 4,168 | 69.3% | 7,058 | 4,168 | 69.3% | 4,316 |
| Cash and cash equivalents1 | 93,947 | 44,925 | 109.1% | 93,947 | 44,925 | 109.1% | 64,861 |
| Net gearing, % 1 | -45.5% | -27.1% | -45.5 % | -27.1% | -33.9% | ||
| Equity ratio, % 1 | 84.5% | 78.2% | 84.5 % | 78.2 % | 81.6% | ||
| Earnings per share (EPS), EUR | 0.06 | 0.30 | -81.4% | 0.52 | 1.13 | -54.2% | 2.26 |
| Diluted earnings per share, EUR | 0.06 | 0.30 | -81.4% | 0.52 | 1.13 | -54.0% | 2.26 |
| Personnel, on average | 916 | 848 | 8.0% | 899 | 824 | 9.0% | 834 |
1 At the end of period
Juha Varelius, President and CEO
The change in customers' purchasing behavior caused by general economic uncertainty has significantly slowed Qt Group's revenue growth during the past year, and the same trend continued also in the third quarter. Due to weaker than estimated third quarter and weaker sales pipeline for the rest of the year, we lowered our full-year guidance for both net sales growth and profitability.
In the third quarter 2025, net sales were EUR 40.7 million, and at comparable exchange rates, net sales decreased 0.2 percent. In the challenging market environment, especially in the automotive industry, average deal size was smaller than expected during July-September 2025, and it decreased in comparison to the previous year. Sales to new customers and to existing customers' new product development projects decreased in comparison to the previous year. Distribution license revenue was on previous year's level.
Weaker than expected net sales growth contributed to weaker profitability in the third quarter of 2025. Operating profit (EBITA) was EUR 4.3 million, and EBITA-margin was 10.5 percent. Profitability decreased also due to one-off costs related to the acquisition of IAR, which totaled approximately EUR 1.7 million in July-September 2025.
We began the work to integrate IAR into Qt Group. IAR's transition towards SaaS based licensing model is a strategically important initiative for us. We will present the tentative SaaS transformation plan and its impact to Qt Group's growth expectations in more detail during the first quarter of 2026. Together with IAR, we now have a more comprehensive product offering for the microcontroller (MCU) market, which is expected to grow at an annual rate of approximately 10%1. In addition, IAR's strong position in safety-critical systems, is a great starting point for sales of Axivion's quality assurance solutions in particular. IAR's key product, the Embedded Workbench compiler, is typically selected at the beginning of product development projects, which will increase the growth opportunities of Qt's other products as potential customers are reached early in the R&D process.
Our next priorities are to plan IAR's SaaS transformation and setting up joint targets for long-term strategy, business synergies and growth opportunities. As of now, we estimate that IAR's impact to Qt Group's net sales in the remainder of the year 2025 will be approximately EUR 8-10 million. The one-off costs related to the acquisition of IAR are estimated to be approximately EUR 6-7 million in 2025, of which approximately EUR 1.7 million will be booked to the third quarter.
1 Source: https://www.mordorintelligence.com/industry-reports/microcontroller-mcu-market
Outlook for 2025 (issued on October 17, 2025):
We estimate that our full-year net sales for 2025 will increase by 3-10 percent year-on-year at comparable exchange rates and that our operating profit margin (EBITA %) will be 20-30 percent in 2025. The outlook includes the estimated impact of the acquisition of IAR Systems Group on Qt Group's net sales and operating profit for the remainder of the year.
News conference
Qt Group will organize a news conference on October 30, 2025, at 4:00 -5:00 pm EET in Eliel studio, Sanomatalo, in Helsinki, Finland, and as a live webcast at www.qt.io/investors CEO Juha Varelius and CFO Jouni Lintunen will be presenting the results. Analysts and investors can participate in the news conference in person or via conference call: https://events.inderes.com/qt/q3-2025/dial-in
Further information:
President and CEO Juha Varelius, tel. +358 9 8861 8040
Distribution:
Nasdaq Helsinki
Key media
www.qt.io