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Introduction & Market Context
Making Science (BME:MAKS) reported its Q1 2025 financial results on April 24, 2025, showcasing strong growth across key metrics despite a challenging market environment for digital marketing and technology consulting firms. The company achieved its highest quarterly EBITDA in history, continuing to outperform industry peers in growth rates.
As shown in the following comparative growth chart, Making Science has maintained stronger growth than major competitors in the digital marketing and consulting space, though industry-wide growth rates have been declining since 2022:
Quarterly Performance Highlights
Making Science reported consolidated Q1 2025 revenues of €82.7 million, representing a 33% increase from €62.4 million in Q1 2024. Gross margin grew 5% to €18.5 million, while recurring EBITDA rose 11% to €4.0 million, marking the highest quarterly EBITDA in the company’s history.
The following chart illustrates the company’s consolidated Q1 2025 performance compared to the same period last year:
The company’s core business, which excludes its investments segment, showed even stronger performance with revenues increasing 35% to €80.2 million and recurring EBITDA growing 16% to €3.9 million. This performance demonstrates the underlying strength of Making Science’s primary operations.
Key highlights for the quarter included sustainable profitability in the USA operations, strong momentum in artificial intelligence offerings, and the entry of a new significant shareholder, Onchena, SL, which acquired more than 5% stake in February 2025.
Segment Analysis
Making Science’s performance varied significantly across geographic segments. The Spanish operations saw revenues decrease by 10% to €32.2 million, but gross margin improved by 17% to €10.0 million, indicating a shift toward higher-margin services. Recurring EBITDA in Spain decreased slightly by 4% to €2.6 million.
In contrast, the international segment experienced explosive revenue growth of 103%, reaching €48.0 million. However, gross margin decreased by 3% to €7.8 million, suggesting some margin pressure in international markets. Despite this, international recurring EBITDA more than doubled, increasing 102% to €1.3 million. The company noted that excluding Georgia, international revenues increased by 17%.
The following chart breaks down the core business performance by segment:
The company’s investments segment, which includes e-commerce and products, saw declines across all metrics with revenues down 15% to €2.5 million and recurring EBITDA down 69% to €0.1 million. However, the company noted that Ventis, one of its e-commerce platforms, remained profitable in Q1 2025.
Making Science continued to expand its client base in Q1 2025, adding major brands including Pepsi, Netflix (NASDAQ:NFLX), VW, and World of Volvo (OTC:VLVLY) across various geographies:
Strategic Initiatives
Making Science has positioned itself as an "AI-powered digital acceleration" company, emphasizing artificial intelligence as a core differentiator. The company has developed several proprietary AI tools, including Ad Machina for media efficiency, Gauss AI for measurement and audiences, and Trust Generative AI for content generation.
The company presented several client success cases demonstrating the effectiveness of these AI tools:
Making Science has also secured various AI-related certifications and specializations, particularly in the Google (NASDAQ:GOOGL) Cloud ecosystem, including Machine Learning, Security, and Generative AI specializations.
Forward-Looking Statements
For 2025, Making Science has provided guidance of €350-370 million in revenue, €79-83 million in gross margin, and €17-18 million in recurring EBITDA. The company reported that it has already achieved approximately 23% of its annual EBITDA target in Q1 2025.
Looking further ahead, Making Science has outlined a 2027 plan targeting recurring EBITDA of €23-27 million, implying a compound annual growth rate of 20% from 2025 to 2027.
The company’s long-term evolution shows consistent growth from €6 million in revenue in 2016 to €274 million in 2024, with projections continuing this trajectory through 2027:
Competitive Industry Position
Making Science describes itself as an international digital acceleration company with over 1,200 employees across 16 countries, focusing on high-growth markets including digital advertising, data analytics, e-commerce, and cloud services. The company serves more than 850 customers through 22 offices globally.
A key aspect of Making Science’s business model is the stability and predictability of its revenues, with 80-85% of service revenues coming from monthly recurring fees rather than project-based work.
The company’s shareholder structure shows strong alignment with management interests, as approximately 73% of shares are owned by management and employees. The CEO and related entities control 55% of shares, while Onchena, SL recently acquired a 6% stake. The free float represents 21% of outstanding shares.
Making Science is currently trading at €8.95 per share (as of April 22, 2025), giving the company a market capitalization of approximately €80 million. The stock is listed on both BME Growth in Madrid and Euronext (EPA:ENX) in Paris.
Conclusion
Making Science’s Q1 2025 results demonstrate continued strong growth despite a challenging industry environment. The company’s focus on international expansion and AI-powered solutions appears to be driving revenue growth, though with some margin pressure in international markets. The achievement of sustainable profitability in the USA market represents a significant milestone, while the company’s guidance suggests confidence in maintaining growth momentum throughout 2025 and beyond.
The company will be hosting an Investor Day on May 6, 2025, in Madrid, where it will provide further details on its strategy and outlook.
Full presentation:
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