Admicom posts Q1 revenue growth, but profitability pressured by costs

Investing.com -- Admicom Group kicked off 2025 with solid revenue growth and expanding recurring income. However, profitability metrics softened amid rising operational costs, the company reported on Wednesday.

In the first quarter of 2025, Admicom Group reported revenue of €9.27 million, marking a 7.7% increase compared to €8.61 million in the same period the previous year. 

This growth was supported primarily by a 9.2% rise in recurring revenue, which reached €8.79 million, underlining the company’s stable customer base and reliable income streams.

Annual recurring revenue (ARR) increased to €35.6 million, up from €33.8 million, reflecting a 5.5% year-on-year growth and aligning closely with the 2024 year-end figure of €35.7 million. 

Despite the revenue growth, the company posted a decline in profitability. Adjusted EBITDA dropped by 11.6% to €2.35 million, representing 25.3% of revenue, down from 30.9% in Q1 2024. 

Similarly, EBITDA came in at €2.27 million—a 12% decrease from the previous year—and accounted for 24.5% of revenue versus 29.9% last year. 

These contractions indicate increased costs or operational investments that have yet to yield margin benefits.

Adjusted EBIT fell sharply by 28.3% to €1.23 million, and EBIT declined by 29.7% to €1.15 million. Both represented narrower slices of total revenue, at 13.3% and 12.4% respectively, compared to 19.9% and 19.0% in the corresponding quarter last year. 

As a result, net profit for the period stood at €676,000, a 36.8% drop from €1.07 million the previous year. Earnings per share (EPS) declined accordingly, to €0.14 from €0.21, a 37.1% fall.

On the balance sheet side, Admicom maintained a strong financial position. Total (EPA:TTEF) assets increased to €41.73 million from €38.28 million, and the equity ratio improved to 72.3%, up from 69.7% in Q1 2024. 

Net gearing remained comfortably negative at -12.2%, albeit slightly higher than the previous year’s -15.6%, reflecting a continued net cash position.

Return metrics also saw a downward adjustment, with return on equity (ROE) falling from 15.5% to 8.7% and return on investment (ROI) decreasing from 20.4% to 12.9%.

The company’s workforce grew to 325 employees, up from 279, a 16.5% increase year-on-year, suggesting continued investments in talent and operational scaling. 

The number of shares remained stable at approximately 5.005 million, both at the end of the period and on average during the quarter.