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Introduction & Market Context
Admicom Oyj (HEL:ADMCM) presented its Q3 2025 interim report on October 9, revealing a 7.8% increase in annual recurring revenue (ARR) to €36.7 million despite persistent challenges in the Finnish construction market. The company’s share price rose 1.64% to €46.45 following the presentation, suggesting investor confidence in Admicom’s ability to navigate difficult market conditions.
CEO Simo Leisti and CFO Satu Helamo outlined the company’s performance and strategic direction, acknowledging that expectations for a faster market recovery have been postponed. The Finnish construction sector showed modest 2% year-over-year growth in the first seven months of 2025, with economists projecting only 3.5% growth for the sector in 2026.
"Leading indicators of the construction sector remain low, but direction is cautiously positive," the company noted in its presentation, explaining the rationale behind its revised full-year guidance.
Quarterly Performance Highlights
Admicom reported solid financial performance for Q3 2025, with recurring revenue growth of 8.7% compared to Q3 2024. Recurring revenue now constitutes 97% of total revenue, up from 95% in the comparative period, highlighting the company’s successful transition to a subscription-based model.
As shown in the following key financial figures:
The company’s adjusted EBITDA increased by 2.3% to €3.7 million, representing a margin of 39.6% compared to 41.4% in Q3 2024. This slight margin compression reflects ongoing investments in growth initiatives and the impact of the Bauhub acquisition, which operates at lower margins.
Cash flow performance was particularly strong, with operating cash flow before financial items and taxes reaching €2.5 million, a 22% improvement over the €1.8 million reported in Q3 2024. This improvement was attributed to better EBITDA and effective working capital management.
A more detailed breakdown of the quarterly financials shows:
The presentation highlighted that the Bauhub OÜ acquisition contributed significantly to growth metrics, adding 5.4 percentage points to ARR growth, 5.4 percentage points to recurring revenue growth, and 5.1 percentage points to overall revenue growth. This suggests that organic growth was more modest than the headline figures indicate.
Detailed Financial Analysis
Admicom’s ARR has shown consistent growth over time, reaching €36.7 million in Q3 2025. The quarter-over-quarter growth was 2.8%, with the company noting that the negative impact of adjustment fees is evening out.
The ARR trend is illustrated in the following chart:
Customer churn remains a challenge, increasing to 6.7% on a last-twelve-months basis, up from 5.6% for the full year 2024. The company attributed this elevated churn primarily to insolvencies in the construction sector and restructuring activities among clients.
Despite these challenges, Admicom reported acquiring over 70 new customers in Q3 and winning "multiple competitive replacements from existing ERP vendors." However, the company acknowledged that "high volume of cross- and up-sell opportunities but lower average deal size" affected overall growth.
Strategic Initiatives
Admicom outlined seven strategic execution streams aimed at achieving its 2030 vision of becoming the "First choice of partner in the European construction software ecosystem" with €100 million in ARR:
1. Growth acceleration
2. Internationalization
3. Unified platform experience
4. Target operating model
5. Equity story and incentives
6. Winning culture, teams and talent
7. Accounting service of the future
The company is accelerating execution across these streams, as illustrated in the presentation:
Key initiatives include increasing customer activities, exploring opportunities outside Finland, accelerating cross-functional capabilities, finalizing Finnish subsidiary mergers, and implementing multiple automation initiatives in accounting services.
Admicom also announced that Henna Kotilainen has started as Chief Strategy Officer (CSO), strengthening the executive team as the company pursues its strategic goals.
Forward-Looking Statements
On October 8, Admicom issued a profit warning and revised its full-year guidance. The updated outlook reflects the slower-than-anticipated recovery in the Finnish construction market and temporary slowness in sales and product development due to organizational changes.
The comparison between original and updated guidance is presented clearly:
For 2025, Admicom now expects:
The company identified several key drivers affecting both growth and profitability, including the Ultima billing model change, slower market recovery, elevated churn, and the impact of the Bauhub acquisition.
Admicom announced it will host a Capital Markets Day on December 2, 2025, in Helsinki, where it will provide more details on its strategic development and future direction. This event will be closely watched by investors seeking clarity on the company’s path to achieving its 2030 targets amid the challenging market environment.
Competitive Industry Position
Despite market headwinds, Admicom maintains a strong competitive position in the construction software ecosystem. The company reported that its customers have grown at a higher speed compared to the overall market, suggesting that Admicom’s solutions provide value even in difficult conditions.
The presentation highlighted the company’s success in winning competitive replacements from existing ERP vendors, indicating its ability to capture market share from competitors. Additionally, the new portfolio pricing launched in Q3 has already resulted in initial deals, potentially improving the company’s competitive positioning.
Admicom’s high recurring revenue percentage (97%) and strong cash flow generation demonstrate the resilience of its business model, providing a solid foundation for navigating the current market challenges while investing in future growth opportunities.
Full presentation:
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