Digital Workforce Services (DWF) Q1 2025 earnings summary

Executive summary

• Continuous Services revenue grew 12% year-over-year, aligning with strategic goals, but overall revenue declined 3.7% due to delayed project deliveries and invoicing, especially in healthcare.

• Profitability decreased significantly, with EBITDA at EUR -1.2 million and adjusted EBITDA at EUR -0.3 million, impacted by restructuring costs.

• Major organizational changes included new CTO and COO appointments, a new dividend policy, and the CFO's resignation.

Financial highlights

• Revenue for Q1 2025 was EUR 6.5 million, down from EUR 6.7 million year-over-year.

• Gross profit dropped 53.4% to EUR 1.1 million, with gross margin at 17.4% versus 36.0% last year.

• EBITDA margin fell to -18.6% from 4.3% year-over-year; adjusted EBITDA margin was -5.0%.

• Net income was EUR -1.3 million, with EPS at EUR -0.12 compared to EUR 0.02 last year.

• Cash and liquid assets at period end were EUR 10.2 million, down from EUR 13.0 million.

Outlook and guidance

• Full-year 2025 revenue is expected to exceed 2024, with improved adjusted EBITDA projected.

• Cost-saving measures and organizational restructuring are expected to positively impact results from Q2 onwards.