Pexip (PEXIP) Q3 2025 earnings summary

Executive summary

• Achieved strong financial performance in Q3 2025, with ARR at USD 122.2 million, up 12% year-over-year, and revenue up 16% to NOK 265.6 million, driven by 30% growth in Secure and Custom.

• EBITDA for Q3 was NOK 52.4 million, with a 12-month rolling EBITDA margin of 25% and significant margin expansion year-over-year.

• Launched new products, including Connect for Google Meet hardware, and expanded AI features for secure meetings.

• Free cash flow for Q3 was NOK 28.9 million, with cash and money market funds at NOK 526 million and no material debt.

• Completed share buyback program in Q3, returning NOK 42.1 million to shareholders.

Financial highlights

• Q3 2025 revenues grew 16% year-over-year to NOK 265.6 million, driven by software sales and ARR growth.

• Adjusted EBITDA for Q3 was NOK 52.4 million, with a margin of 20% for the quarter and 25% on a 12-month basis.

• Gross margin improved to 90% in Q3 2025.

• Profit after tax for Q3 was NOK 25.6 million.

• Free cash flow for the last twelve months was NOK 303 million.

Outlook and guidance

• End Q4 2025 ARR expected in the range of USD 124–127 million, reflecting continued positive momentum.

• Near-term targets: above 10% ARR growth and above 20% EBITDA margin, with high cash conversion.

• Long-term ambition to achieve Rule of 40 performance (ARR growth + EBITDA margin ≥ 40%); currently at 37%.