Circle (CIRC) H1 2025 earnings summary

Executive summary

• Production value reached €11.8 million in H1 2025, up 62% year-over-year, driven by organic growth, proprietary products, federative services, and integration of new solutions and acquisitions.

• Proprietary software revenues rose 105% to €4.1 million, with SaaS and cloud-based services gaining traction.

• EBITDA grew 52% to €2.7 million, with an EBITDA margin of 22.6%; net profit increased 2% to €1.1 million, despite higher amortization from recent investments.

• Strategic contracts, international expansion, and new collaborations contributed to growth.

• Integration of acquisitions (eXyond, Circle Garage) and new product launches supported performance despite macroeconomic challenges.

Financial highlights

• H1 2025 production value: €11.8 million (+62% YoY); proprietary software: €4.1 million (+105% YoY); federative services up 80%.

• Revenues from sales and services grew 70% to €9.7 million compared to H1 2024.

• EBITDA: €2.7 million (+52% YoY); EBIT: €1.2 million (EBIT adjusted: €1.5 million, +15% YoY); net profit: €1.1 million (+2% YoY); EBITDA margin: 22.6%.

• Net financial debt: €0.8 million (vs. cash positive €2 million at 31/12/2024); adjusted net financial debt (cash positive) at €2.2 million.

• Equity: €17.4 million (up from €16.7 million at 31/12/2024); investments in H1 2025 totaled €1 million, mainly in intangible assets and product development.

Outlook and guidance

• 2025 production value guidance raised to €24–26.4 million; EBITDA expected at €5–5.7 million.

• 2026 production value forecast at €27–28.5 million, EBITDA at €6–7 million.

• Anticipates further growth from the PNRR Login Business tender, unlocking €157 million in market opportunities and regulatory changes (e-CMR, eFTI).

• Focus on expanding digital and federative services, leveraging regulatory changes and new EU funding.

• Monitoring global economic and geopolitical risks to adapt strategies.