5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Introduction & Market Context
Zalaris ASA (OB:ZAL) presented its Q3 2025 financial results on October 24, 2025, showcasing strong growth across key metrics and strategic initiatives. The HR and payroll solutions provider saw its stock rise 4.12% following the announcement, closing at NOK 91.0, approaching its 52-week high of NOK 91.4.
The company, celebrating its 25th year in operation, demonstrated continued momentum in its financial performance while announcing significant strategic developments, including a renewed SAP partnership and a new credit facility that promises to substantially reduce interest expenses.
Quarterly Performance Highlights
Zalaris reported revenue of NOK 375 million for Q3 2025, representing a 10.3% year-over-year increase. The company achieved an all-time high third-quarter adjusted EBIT of NOK 47 million, up 27% from the previous year, with the adjusted EBIT margin expanding to 12.6% from 10.9% in Q3 2024.
As shown in the following financial momentum chart, Zalaris has demonstrated impressive growth across key metrics on a last twelve months (LTM) basis:
The company’s net interest-bearing debt decreased from NOK 337 million to NOK 245 million, while the NIBD/adjusted EBITDA ratio improved significantly from 2.5 to 0.9, indicating stronger financial health and increased capacity for future investments.
During the quarter, Zalaris secured several notable client wins and renewals that support its continued growth trajectory:
Segment Performance Analysis
Managed Services, which constitutes Zalaris’ core business, grew 14% year-over-year to NOK 289 million, representing 77% of total revenue. The segment demonstrated strong performance across all regions, with particularly impressive growth in the UK and Ireland region at 63%.
The following chart illustrates the consistent growth trend in Managed Services revenue:
Meanwhile, the Consulting segment reported a modest 1% year-over-year increase to NOK 85 million. Growth was primarily driven by increased sales in APAC, partially offset by reductions in the DACH region and Poland. The company noted that significant consulting capacity is being utilized to support Managed Services in implementing new customers and delivering change orders, particularly in Germany.
Strategic Initiatives
A key strategic development announced during the presentation was Zalaris’ new EUR 40 million Revolving Credit Facility (RCF) with Nordea, which will refinance its current EUR 40 million senior secured bond loan. This refinancing is expected to reduce annual interest expenses by NOK 16-18 million while providing increased flexibility for dividend distribution and/or share buybacks. The closing of this facility is planned for mid-November 2025.
Zalaris also announced a reaffirmed partnership with SAP, including a new long-term agreement to migrate its PeopleHub solution to SAP S/4 HANA Cloud. This partnership provides Zalaris access to a solution that SAP has committed to support until 2040, stronger alignment with SAP’s global sales organization, and enhanced access to SAP’s AI innovations and integration capabilities.
The company’s revenue visibility remains strong, with new BPO contracts expected to add approximately NOK 71 million in annual recurring revenue when fully implemented:
Financial Outlook & Guidance
Having delivered on its NOK 1.5 billion run-rate target one year early, Zalaris has now set its sights on achieving NOK 2 billion in run-rate revenue with an EBIT margin of 13-15% by Q4 2028. This represents an expected revenue increase of approximately 16% compared to FY 2024 by Q4 2026, based on already signed contracts.
The company’s long-term financial targets are visualized in the following chart:
Zalaris plans to achieve these targets through a "land and expand" approach combining Consulting and Managed Services capabilities to win new large deals and explore potential in its existing customer base. The company also highlighted automation, AI, and X-shore initiatives as key drivers to achieve scale and improve EBIT margins.
CEO Hans-Petter Mellerud expressed confidence in the company’s performance, stating during the earnings call that "Q3 delivered record results, operational excellence, and strategic progress." He emphasized the importance of the SAP partnership and the company’s focus on expanding its global presence, noting, "We are sharpening our land and expand approach."
With strong financial performance, strategic partnerships, and clear visibility on future revenue growth, Zalaris appears well-positioned to continue its positive trajectory as it approaches its ambitious 2028 targets.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.