Cint Q2 2025 slides reveal higher margins amid platform consolidation

Published 17/07/2025, 09:06
Cint Q2 2025 slides reveal higher margins amid platform consolidation

Introduction & Market Context

Cint Group AB (CINT), the self-described "world’s largest survey exchange," presented its Q2 2025 results on July 17, 2025, showing improved profitability despite declining sales. The company’s shares dropped 9.09% following the presentation, closing at 8.25, suggesting investors were concerned about the revenue decline despite the margin improvements.

The global market research technology provider, which acquired Lucid (NASDAQ:LCID) in 2021, continues to focus on platform consolidation while navigating shifting business dynamics across its global operations spanning 70+ countries.

Quarterly Performance Highlights

Cint reported Q2 2025 net sales of EUR 39.3 million, representing a 6.6% decline compared to EUR 42.1 million in the same period last year (2.9% decline in constant currency). Despite lower sales, the company improved its profitability metrics significantly.

As shown in the following financial summary chart:

Gross profit reached EUR 34.9 million with an improved margin of 88.8% (compared to 87.0% in Q2 2024). Operating expenses decreased to EUR 26.7 million (from EUR 29.5 million), contributing to an EBITA of EUR 8.2 million with a 20.8% margin (up from 16.9%).

The company’s quarterly performance is further illustrated in these trend charts:

Detailed Financial Analysis

Cint’s financial results reveal contrasting performance across business segments and regions. Media Measurement sales increased by 8.3% (14.2% in constant currency), while Cint Exchange sales decreased by 12.1% (9.1% in constant currency), which the company attributed to ongoing platform migration efforts.

The following chart breaks down net sales by business segment and region:

Regionally, EMEA was the bright spot with 6.9% growth to EUR 12.1 million, while the Americas declined 8.1% to EUR 24.5 million. The APAC region saw the steepest drop of 33.2% to EUR 2.8 million, which the company explained was "a result of a reorganization and alignment to the new go to market strategy."

Cint’s balance sheet showed significant improvement, with net debt reduced to EUR 13.7 million compared to EUR 83.7 million at year-end 2024. The net debt to EBITDA ratio stood at 0.3x, well below the company’s target of 2.5x. Cash and cash equivalents reached EUR 49.8 million, up from EUR 26.4 million at the end of 2024.

The company highlighted its working capital management, particularly the continued reduction of accounts receivable by EUR 12.9 million during the quarter, attributed to structural operational enhancements including legal entity rationalization, ERP system consolidation, unified CRM system, and reinforced billing and collections capabilities.

Strategic Initiatives

Platform consolidation remains a key strategic priority for Cint following its acquisition of Lucid in 2021. According to the presentation, 95% of legacy Cint customers have now migrated to the new Cint Exchange platform, with the remaining migrations expected to be completed early in Q3 2025.

The company provided the following update on its platform consolidation efforts:

A significant development was the signing of a new multi-year commercial agreement with Kantar in July 2025. Cint plans to achieve full platform consolidation by the end of the year, including a full upgrade path for legacy Lucid customers starting in Q4 2025, with platform deprecation of the legacy system planned for early 2026.

Innovation initiatives were also highlighted, including:

  • Rebuilt Engage panel platform now fully integrated into Cint Exchange
  • Upcoming launch of Cint Verified Audiences as a native app in the Snowflake (NYSE:SNOW) Marketplace
  • Accelerating market adoption of Measurement Study Creator, especially in EMEA
  • Updates to measurement integration in The Trade Desk (NASDAQ:TTD) with new data visualizations and AI-generated reports

Forward-Looking Statements

Cint reiterated its medium-term financial targets, which include:

The company aims to achieve annual organic sales growth exceeding 10% in the medium term, along with an EBITA margin target of 25%. The current quarter’s 20.8% EBITA margin shows progress toward this goal despite the sales challenges.

Cint maintains a conservative approach to leverage, targeting net debt to EBITDA below 2.5x, which it has already achieved with the current 0.3x ratio. The company plans to reinvest cash flows into growth initiatives rather than paying dividends in the short term.

On the sustainability front, Cint has committed to achieving net-zero greenhouse gas emissions across its operations by 2045, aligning with Sweden’s national climate targets.

While the presentation emphasized improved profitability and platform consolidation progress, the market’s negative reaction suggests concerns about the overall sales trajectory and potential challenges in completing the platform migration, particularly for legacy Lucid customers.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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