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Investing.com -- CM.com stock dropped 9% after the company lowered its full-year EBITDA guidance due to current market trends and continued foreign exchange volatility.
The Dutch communications platform provider now expects EBITDA to reach €18-20 million for fiscal year 2025, down from its previous forecast of €22-27 million. The revised outlook comes despite the company posting its first quarter of positive organic growth since Q4 2024.
In its third quarter trading update, CM.com reported a 1% YoY decline in revenues, while gross profits remained flat compared to the same period last year. However, the company did see some positive developments, with EBITDA margin increasing by 2 percentage points quarter-over-quarter to €5.4 million, driven by operating expense reductions.
Normalized EBITDA, which excludes one-off restructuring costs, rose even more significantly with a 3 percentage point QOQ margin increase, reaching €6 million in absolute terms. The company’s annual recurring revenue grew approximately 2% QOQ, indicating that software subscriptions continue to show reasonable growth.
Looking ahead, CM.com still expects gross profit to increase in the second half of 2025 compared to the first half. The company also anticipates lower year-over-year normalized operating expenses as a result of its restructuring program, which is focused on the UK market. This represents an improvement from its previous guidance of flat operating expenses.
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