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Introduction & Market Context
Talenom Oyj (HEL:TNOM) presented its Q1 2025 business review on April 24, 2025, reporting a 5% year-over-year increase in net sales to €36 million and a 12.5% rise in EBITDA to €10.7 million. The company’s stock responded positively, opening with a 4.37% increase to €3.21, reflecting investor confidence in the company’s performance and strategic direction.
A significant milestone during the quarter was the completion of the Software (ETR:SOWGn) business separation, creating two distinct business areas: Accounting (€28.8 million in net sales) and Software (€6.9 million). This restructuring aims to sharpen focus on core competencies and promote scalable growth.
Quarterly Performance Highlights
Talenom’s Q1 2025 results demonstrated continued growth momentum, with net sales reaching €36 million, up 5% from the previous year. The company’s EBITDA showed even stronger improvement, increasing by 12.5% to €10.7 million.
As shown in the following chart highlighting key Q1 2025 performance metrics:
Operating profit also saw positive development, reaching €4.7 million (13.1% of net sales), up from €3.9 million in Q1 2024. The company’s net sales have shown consistent growth over recent years, though the pace has moderated compared to earlier periods.
The following chart illustrates the Group’s net sales performance over time:
Profitability metrics also showed improvement, with EBITDA and operating profit margins strengthening despite ongoing investments in international markets:
Geographic Performance Analysis
Talenom’s performance varied significantly across its geographic markets, with Finland showing strong results while Sweden faced challenges.
In Finland, net sales grew by 11.3% to €26.1 million, with EBITDA increasing to €11.3 million, representing an impressive 43.3% of net sales. The company noted that the decline in customers’ transaction volumes has stopped, and organic growth has resumed thanks to successful new customer acquisition.
The Finnish business performance is illustrated in this chart:
In contrast, Sweden experienced a 14% decline in net sales to €6.0 million and reported a negative EBITDA of €-0.2 million (-3.0% margin). This decline resulted from customer churn in 2024, though management noted early signs of improvement in new sales and reduced churn rates. The implementation of Talenom’s own platform in Sweden has kept costs elevated as the company aims to secure growth preconditions.
The Swedish business performance is shown here:
Spain showed modest growth with net sales increasing by 0.7% to €3.6 million and achieving breakeven EBITDA (0.2% margin). The company has focused on acquiring customers with recurring invoicing in Spain, which resulted in decreased non-recurring revenue but is expected to build a more stable foundation for future growth.
Software Business Separation and Strategy
A key strategic development in Q1 2025 was the separation of Talenom’s Software business. The Software segment generated €6.9 million in reported net sales (including €1.5 million from a change in recognition principles) and demonstrated strong profitability with an adjusted EBITDA margin of 70.3%.
The following chart shows the breakdown of net sales and EBITDA between the Accounting and Software businesses:
Talenom’s software offerings include solutions for both SMEs and accounting professionals:
The Software business has built significant scale, serving over 12,000 SME clients with more than 60,000 end-users across four countries:
Talenom plans to launch the Software business’s brand on May 28, 2025, with growth in 2025-2026 expected to come primarily from converting Swedish and Spanish customers to the platform. By 2027, the company aims to have more than 50% of platform business growth coming from partner agencies.
Forward-Looking Statements
Talenom maintained its 2025 guidance, projecting net sales of €130-140 million and EBITDA of €36-42 million. The company expects stable demand in the accounting services market across all operating countries, with market conditions potentially improving in the second half of the year in Finland and Sweden.
For 2025, Talenom outlined three strategic priorities:
1. Improving profitability in Sweden through systematic implementation of software, processes, and the ONE Talenom operating model
2. Leveraging Spain’s e-invoicing directive, which creates demand for software and accounting services as companies are forced to adopt e-invoicing
3. Building sales channels and developing SaaS capabilities in the software business
The company’s long-term strategy builds on its proven track record of digital transformation:
During the earnings call, CEO Otto-Pekka Huhtala acknowledged room for improvement, stating, "Our ambition is to grow. We are not happy with the current speed." This suggests that while the company is making progress, management sees potential for accelerating growth in the coming periods.
As Talenom continues to execute its strategy of digital transformation and international expansion, investors will be watching closely to see if the company can leverage its software capabilities and regulatory tailwinds to accelerate growth while improving profitability across all markets.
Full presentation:
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