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Vantiva reported a 7.9% revenue growth in Q3 2025, driven by strong performance in its broadband segment, despite global challenges in the video market. The company maintained its full-year guidance, anticipating EBITDA to exceed €150 million. The stock saw a modest increase of 0.94% following the announcement, reflecting cautious investor optimism.
Key Takeaways
- Vantiva achieved a 7.9% revenue growth in Q3 2025 at current exchange rates.
- The company maintained its full-year guidance despite market challenges.
- Stock price increased by 0.94% post-earnings announcement.
- Strong demand from North American customers bolstered results.
- Component supply challenges and exchange rate impacts remain concerns.
Company Performance
Vantiva’s performance in Q3 2025 was marked by a 7.9% increase in revenue at current exchange rates, with constant exchange rate growth reaching 13%. The broadband segment was a key driver, offsetting the negative impact from the video business. Over the nine-month period, revenue grew by 7.9% at current rates and 10.8% at constant rates. The company remains resilient amid global market fluctuations, particularly in the video sector.
Financial Highlights
- Revenue growth: 7.9% YoY at current exchange rates
- Constant exchange rate growth: 13% in Q3
- EBITDA projected to exceed €150 million
- Free cash flow expected to be positive after financing charges, tax, and restructuring
Outlook & Guidance
Vantiva maintained its full-year guidance, projecting EBITDA to surpass €150 million. However, the company anticipates a slight revenue decline in Q4 compared to the previous year, with some sales potentially shifting into 2026. The guidance is based on a euro/dollar parity of 1.05, with a potential €5-10 million impact from current exchange rates.
Executive Commentary
CEO Tim O’Loughlin highlighted the company’s adaptability in navigating market challenges, stating, "We’re seeing some general tightening in some of the commodity categories." CFO Lars Ihlen acknowledged potential impacts from exchange rate fluctuations, noting, "We will see some deterioration versus the budget rate."
Risks and Challenges
- Component Supply Issues: Ongoing challenges in the DDR4 memory market could affect production and costs.
- Exchange Rate Volatility: Fluctuations in currency values may impact financial outcomes.
- Video Market Softening: A global decline in the video segment could continue to weigh on performance.
- Retail Demand: Softening in diversification activities due to changing retail demand patterns.
- Tariff Environment: Navigating tariffs remains a critical aspect of maintaining competitiveness.
Q&A
During the Q&A session, David Serdan from Kepler Cheuvreux inquired about the tariff impact on customer behavior, expectations for Q4 performance, and the progress of the restructuring plan. The company addressed concerns about component supply challenges and reiterated its focus on maintaining a competitive stance despite market fluctuations.
Full transcript - Vantiva SA (VANTI) Q3 2025:
Thierry, Conference Moderator, Vantiva: Ladies and gentlemen, good evening and welcome to Vantiva, third quarter 2025 revenues conference call, chaired by Tim O’Loughlin, CEO, and Lars Ihlen, CFO. At this time, all participants are in a listening-only mode. Later, we will conduct a question-and-answer session. If you’d like to register questions, please press star one on your telephone keypad. Just to remind you all, this conference is being recorded. I would like to inform you that this event is also available live on our Vantiva’s website with a synchronized slideshow. During this conference call, statements could be made that constitute forward-looking statements based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecast, or implied by such forward-looking statements.
For a more complete list and description of such risks and uncertainties, refer to Vantiva’s filing with the French authority, the marché financier. I would like now to hand over the call to Tim. Please go ahead.
Tim O’Loughlin, CEO, Vantiva: Thanks, Thierry. Let’s jump into some key highlights from our third quarter. The third quarter saw strong revenue driven by strong demand, particularly out of some of our customers in North America. Our video business continued to be impacted negatively by general decline in the segment. Almost around the world, we’ve seen softening of the video business. Our diversification activities were impacted by softer retail demand. When we look forward into Q4, we expect that our year-over-year comparison revenues will be lower, typically due to customer procurement timing. Talk a little bit about when we look at our guidance for the year that we’re starting to see some pressure on the supply of components. We see memory prices trending upwards, but overall, we are maintaining guidance at our budget exchange rate, assuming that component availability remains stable.
If we jump to the next slide, we can look at some of the year-over-year comparables. If we look at our Q3 2024 versus our Q3 2025, you can see that we had a very strong quarter with 7.9% of growth using the current exchange rate. If we look back using the constant exchange rate, it was over 13% of growth. When we look at the nine-month period for 2024 compared to the nine-month period for 2025, we see again a 7.9% growth rate using the current rate and almost an 11%, 10.8% growth rate at constant. Generally, a very strong quarter for Q3, broadband driving that. Overcoming some adverse foreign exchange impact, having some video segment decline, and some softness in diversification. We’re maintaining guidance. We will exceed €150 million of EBITDA. We’ll be above zero for free cash flow after financing charges, tax, and restructuring charges.
Of course, we’re assuming our budget exchange rate. That’ll keep us on track for guidance. We’ll open it up to any questions from the audience.
Thierry, Conference Moderator, Vantiva: Thank you, Tim. I remind you, if you want to ask questions, please press star one on your telephone keypad.
David Serdan, Analyst, Kepler Cheuvreux: There are no questions. There are no questions from the call line. The first question is from David Serdan from Kepler Cheuvreux. Please go ahead.
Good evening, gentlemen. I have a couple of questions. My first one is regarding your performance in Q3. Do you think that this performance is more or less impacted by some anticipation from some of your clients to avoid the U.S. tariff? The second question is regarding the end of the year. How do you see the end of the year compared with last year, compared with Q3? The last question is regarding your guidance. It is based on 1.05 euro/dollar parity, but can you update us on what could be the guidance based on the current euro/dollar parity, something around 1.13 for the full year?
Tim O’Loughlin, CEO, Vantiva: Okay. I’ll take the tariff question, Lars, and then let you take the other. Two pieces there. I don’t think at this point in time that we’re seeing many behavioral changes in our customers’ buying habits based around the tariff situation. Although it’s been a dynamic environment, the company has managed all of the ups and downs of tariffs. The customers’ buying momentum right now is really tied to their underlying requirements for their businesses in broadband. Generally, as mentioned, the video market has been quite soft, but I don’t think tariff is driving behavior right this moment from customers. Lars, do you want to take the other two?
Lars Ihlen, CFO, Vantiva: Yeah. With regards to Q4, yes, we do expect that Q4 is going to be down year over year. We had a very, very strong Q4 in 2023, and we will not see that this year. On top of that, we also had some acceleration of sales from Q4 into Q3. Yes, David, you could expect Q4 to be lower than what we had last year. On the last question regarding the actual rates, yes, as you say, the exchange rates have clearly not moved in our direction this way. This is, of course, only impacting us in the places where we have a translation impact because we are hedged and covered for any exchange rate exposure for most of the transaction issues we have. We will see some deterioration versus the budget rate.
It’s difficult to estimate exactly how much that will be now before we have Q4 and the mix of the currencies, but I think somewhere in the range, mid-millions, $5 to $10 million could be an issue.
Okay. Thank you. Maybe a follow-up question because now we are close to the end of the year. Could you give us maybe a range of revenues we could expect for 2025?
Yes. I think what we will see is that we will be a bit down versus 2024. With the supply chain constraints Tim was alluding to earlier, we will have some sales being sliding into 2026. I expect us to be slightly down versus last year.
Okay. Just to be clear on the issues regarding the component, do you think that it can be compared with the crisis it was a few years ago? Are you better equipped to face deterioration in your supply?
Tim O’Loughlin, CEO, Vantiva: Yeah. I definitely would not categorize anything that’s happening now as a crisis. We’re seeing some general tightening in some of the commodity categories. For sure, everyone’s aware that the memory market, DDR4 memory, has gotten tighter. We’re starting to see a little bit of tightening in some of the other commodity categories and generally just some slow delivery from vendors. We’re watching the market to see if this is a macro trend that’s going to continue into 2026 or if it’s just an isolated phenomenon here in the fourth quarter. We’re continuing to monitor it. Definitely not a crisis.
Okay. If I’m right, it’s more a problem of demand or production? Just to be clear.
It varies from segment to segment. I’d say when you look at the DDR4 memory markets today, there is demand on DDR4, but there’s an underlying supply challenge happening on DDR4. It depends on the segment and what’s happening specifically from a category standpoint.
Okay. Thank you for your answers.
Thierry, Conference Moderator, Vantiva: Thank you, David.
David Serdan, Analyst, Kepler Cheuvreux: If you wish to ask a question, please press star one on your telephone keypad. Management, there are no questions.
Thierry, Conference Moderator, Vantiva: Thank you for being on the call this evening. If you have further questions, feel free to call me.
David Serdan, Analyst, Kepler Cheuvreux: Sorry, David.
Thierry, Conference Moderator, Vantiva: Whenever you want.
David Serdan, Analyst, Kepler Cheuvreux: Sorry, there is an Xbox. David Serdan, sorry, has a question from Kepler Cheuvreux.
Yeah, I will go fast. Just to have an update on your restructuring plan, the cost and savings, can we have just an update or just confirm what you have said in the recent past?
Tim O’Loughlin, CEO, Vantiva: I think we can confirm what we’ve said in the past, that we’re on that same plan and tracking accordingly. I don’t think there’s any change to report from a restructuring standpoint; it’s proceeding as expected.
Okay, great. Many thanks.
Thank you.
Thierry, Conference Moderator, Vantiva: Thank you very much.
David Serdan, Analyst, Kepler Cheuvreux: Okay, management, I turn you the floor for the final conclusion.
Tim O’Loughlin, CEO, Vantiva: As always, I wanted to thank all of our customers, employees, all the stakeholders in the company. It was a good quarter. We look forward to speaking again next quarter. Thank you.
David Serdan, Analyst, Kepler Cheuvreux: Ladies and gentlemen, this concludes the webcast. Thank you for all your participation. You may now disconnect.
Thierry, Conference Moderator, Vantiva: Ladies and gentlemen, good evening and welcome to Vantiva’s Third Quarter 2025 Revenues Conference Call, chaired by Tim O’Loughlin, CEO, and Lars Ihlen, CFO. At this time, all participants are in a listening-only mode. Later, we will conduct a question-and-answer session. If you’d like to register questions, please press star one on your telephone keypad. Just to remind you all, this conference is being recorded. I would like to inform you that this event is also available live on our Vantiva website with a synchronized slideshow. During this conference call, statements could be made that constitute forward-looking statements based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecast, or implied by such forward-looking statements.
For a more complete list and description of such risks and uncertainties, refer to Vantiva’s filing with the French authority, the marché financier. I would like now to hand over the call to Tim. Please go ahead.
Tim O’Loughlin, CEO, Vantiva: Thanks, Thierry. Let’s jump into some key highlights from our third quarter. The third quarter saw strong revenue driven by strong demand, particularly out of some of our customers in North America. Our video business continued to be impacted negatively by general decline in the segment. Almost around the world, we’ve seen softening of the video business. Our diversification activities were impacted by softer retail demand. When we look forward into Q4, we expect that our year-over-year comparison revenues will be lower, typically due to customer procurement timing. Talk a little bit about when we look at our guidance for the year that we’re starting to see some pressure on the supply of components. We see memory prices trending upwards, but overall, we are maintaining guidance at our budget exchange rate, assuming that component availability remains stable.
If we jump to the next slide, we can look at some of the year-over-year comparables. We look at our Q3 2024 versus our Q3 2025. You can see that we had a very strong quarter with 7.9% points of growth using the current exchange rate. If we look back using the constant exchange rate, it was over 13% points of growth. When we look at the nine-month period for 2024 compared to the nine-month period for 2025, we see again a 7.9% growth rate using the current rate and almost an 11%, 10.8% growth rate at constant. Generally, a very strong quarter for Q3, broadband driving that, overcoming some adverse foreign exchange impact, having some video segment decline, and some softness in diversification. We’re maintaining guidance. We will exceed $150 million of EBITDA. We’ll be above zero for free cash flow after financing charges, tax, and restructuring charges.
Of course, we’re assuming our budget exchange rate. That’ll keep us on track for guidance. We’ll open it up to any questions from the audience.
Thierry, Conference Moderator, Vantiva: Thank you, Tim. I remind you, if you want to ask questions, please press star one on your telephone keypad.
David Serdan, Analyst, Kepler Cheuvreux: There are no questions from the call line. The first question is from David Serdan from Kepler Cheuvreux. Please go ahead.
Good evening, gentlemen. I have a couple of questions. My first one is regarding your performance in Q3. Do you think that this performance is more or less impacted by some anticipation from some of your clients to avoid the U.S. tariff? The second question is regarding the end of the year. How do you see the end of the year compared with last year, compared with Q3? The last question is regarding your guidance. It is based on 1.05 euro/dollar parity, but can you update us on what could be the guidance based on the current euro/dollar parity, something around 1.13 for the full year?
Tim O’Loughlin, CEO, Vantiva: Okay. I’ll take the tariff question, Lars, and then let you take the other. Two pieces there. I don’t think at this point in time that we’re seeing many behavioral changes in our customers’ buying habits based around the tariff situation. Although it’s been a dynamic environment, the company has managed all of the ups and downs of tariffs. The customers’ buying momentum right now is really tied to their underlying requirements for their businesses in broadband. As mentioned, the video market has been quite soft. I don’t think tariff is driving behavior right this moment from customers. Lars, do you want to take the other two?
Lars Ihlen, CFO, Vantiva: Yeah. With regards to Q4, yes, we do expect that Q4 is going to be down year over year. We had a very, very strong Q4 in 2023, and we will not see that this year. On top of that, we also had some acceleration of sales from Q4 into Q3. Yes, David, you could expect Q4 to be lower than what we had last year. On the last question regarding the actual rates, yes, as you say, the exchange rates have clearly not moved in our direction this way. This is, of course, only impacting us in the places where we have a translation impact because we are hedged and covered for any exchange rate exposure for most of the transaction issues we have. We will see some deterioration versus the budget rate.
It’s difficult to estimate exactly how much that will be now before we have Q4 and the mix of the currencies, but I think somewhere in the range, mid-millions, $5 to $10 million could be an issue.
Okay. Thank you. Maybe a follow-up question because now we are close to the end of the year. Could you give us maybe a range of revenues we could expect for 2025?
Yes. I think what we will see is that we will be a bit down versus 2024. With the supply chain constraints Tim was alluding to earlier, we will have some sales sliding into 2026. I expect us to be slightly down versus last year.
Okay. Just to be clear on the issues regarding the component, do you think that it can be compared with the crisis it was a few years ago? Are you better equipped to face deterioration in your supply?
Tim O’Loughlin, CEO, Vantiva: Yeah. I definitely would not categorize anything that’s happening now as a crisis. We’re seeing some general tightening in some of the commodity categories. For sure, everyone’s aware that the memory market, DDR4 memory, has gotten tighter. We’re starting to see a little bit of tightening in some of the other commodity categories and generally just some slow delivery from vendors. We’re watching the market to see if this is a macro trend that’s going to continue into 2026 or if it’s just an isolated phenomenon here in the fourth quarter. We’re continuing to monitor it. Definitely not a crisis.
Okay. If I’m right, it’s more a problem of demand or production? Just to be clear.
It varies from segment to segment. I’d say when you look at the DDR4 memory markets today, there is demand on DDR4, but there’s an underlying supply challenge happening on DDR4. It depends on the segment and what’s happening specifically from a category standpoint.
Okay. Thank you for your answers.
Thierry, Conference Moderator, Vantiva: Thank you, David.
David Serdan, Analyst, Kepler Cheuvreux: If you wish to ask a question, please press star one on your telephone keypad. Management, there are no questions.
Thierry, Conference Moderator, Vantiva: Thank you for being on the call this evening. If you have further questions, feel free to call me.
David Serdan, Analyst, Kepler Cheuvreux: Sorry, David.
Thierry, Conference Moderator, Vantiva: Whenever you want.
David Serdan, Analyst, Kepler Cheuvreux: Sorry, there is an Xbox. David Serdan, sorry, has a question from Kepler Cheuvreux.
Yeah, I will go fast. Just to have an update on your restructuring plan, the cost and savings, can we have just an update or just confirm what you have said in the recent past?
Tim O’Loughlin, CEO, Vantiva: I think we can confirm what we’ve said in the past, that we’re on that same plan and tracking accordingly. I don’t think there’s any change to report from a restructuring standpoint; it’s proceeding as expected.
Okay, great. Many thanks.
Thank you.
David Serdan, Analyst, Kepler Cheuvreux: Thank you very much.
Thierry, Conference Moderator, Vantiva: Okay, management, I turn you the floor for the final conclusion.
Tim O’Loughlin, CEO, Vantiva: As always, I wanted to thank all of our customers, employees, all the stakeholders in the company. It was a good quarter. We look forward to speaking again next quarter. Thank you.
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