EKINOPS (EKI) H2 2024 earnings summary

Executive summary

• FY 2024 revenue reached €117.7m, down 9% year-over-year, with Access solutions up 11% and Optical Transport down 30% after a record 2023.

• Software & Services accounted for 18% of revenue, up from 17% in 2023, driven by SD-WAN growth.

• EBITDA margin improved to 15.3% from 14.4% in 2023, reflecting effective cost management.

• Net income was -€7.0m, impacted by non-recurring expenses related to the closure of the Brazil subsidiary.

• Free cash flow doubled to €10.9m, with strong operating cash flow of €20.8m and net cash position at €29.5m.

Financial highlights

• Gross margin increased to 54.8% from 52.1% year-over-year.

• Operating expenses decreased 7% year-over-year, with R&D down 10% and S&M down 3%.

• Current operating income (EBIT) was €6.5m, up 28% year-over-year.

• Shareholders’ equity stood at €112.1m, with total assets of €185.4m.

• Cash and cash equivalents at €46.4m, financial borrowings reduced to €16.9m.

Outlook and guidance

• No formal guidance for 2025 due to market uncertainty.

• Strategic plan targets double-digit growth and over 30% of revenue from Software & Services by 2028.

• Focus on launching new DCI and SASE solutions, with new products expected in Q4 2025 and early 2026.

• EBITDA margin goal set near 20% in coming years.

• R&D investment to continue without significant OPEX increase.