Tecnotree Corporation Full Year Financial Report 1st Jan – 31st December 2025 (unaudited)
Tecnotree Corporation Stock Exchange Release 25 February 2026 at 9:30 EET
This release is a summary of Tecnotree Corporation’s Financial Statement Release for 2025. The complete report is attached to this release as a PDF and is also available on the Tecnotree website at www.investors.tecnotree.com.
Net sales growth, operating result and positive free cash flow in line with guidance
Full year Results
- Net sales of EUR 72.4 million (71.6) +1.2% YoY, in constant currency EUR 77.4 million, +8.2% YoY, in line with guidance.
- Operating result of EUR 25.6 million (23.8), +7.5% YoY; in constant currency, EUR 25.7 million (23.8), +7.9% YoY.
- Operating margin of 35.3% (33.2%), +210bp margin expansion YoY, in line with guidance; in constant currency 33.2% (33.2%).
- Foreign exchange losses EUR 3.8 million (2.5).
- Net result for the period EUR 10.2 million (8.3) +22.7% YoY. Net result was impacted by an exceptional charge of EUR 6.2 million (comprising a provision on receivables of EUR 3.1 million related to sale of business assets and EUR 3.1 million write-off on accounts receivable).
- Gross cash flow from operations EUR 21.5 million (21.3).
- Positive free cash flow EUR 4.6 million (-1.8), in line with guidance.
- Earnings per share EUR 0.6 (0.5).
- Order book at the end of the period EUR 107.5 million (79.6), +35.1% YoY.
Q4 Results
- Net sales of EUR 19.5 million (17.6) +11.1% YoY; in constant currency, EUR 20.8 million (17.6), +18.6% YoY.
- Operating result of EUR 12.3 million (10.9), +13.6% YoY; in constant currency EUR 15.9 million (10.9); +46.5% YoY
- Operating margin of 63.1% (61.7%), +140bp margin expansion YoY; in constant currency 76.4% (61.7%); +1470bp margin expansion YoY
- Foreign exchange gain EUR 0.1 million (-0.3).
- Net result for the quarter was EUR 4.2 million (0.5) +699.6% YoY.
- Gross cash flow from operations EUR 6.7 million (8.4).
- Positive free cash flow EUR 1.4 million (0.4).
- Earnings per share EUR 0.25 (0.03).
| Key figures, MEUR | 10-12/2025 | 10-12/2024 | 1-12/2025 | 1-12/2024 | |
| Net sales | 19.5 | 17.6 | 72.4 | 71.6 | |
| Operating result (EBIT) | 12.3 | 10.9 | 25.6 | 23.8 | |
| Result before taxes | 7.0 | 3.0 | 15.4 | 12.8 | |
| Adjusted result for the period 1 | 10.4 | 4.9 | 16.4 | 15.6 | |
| One-time items | -6.2 | -4.4 | -6.2 | -7.3 | |
| Result for the period | 4.2 | 0.5 | 10.2 | 8.3 | |
| Earnings per share, basic, EUR | 0.25 | 0.03 | 0.60 | 0.50 | |
| Order book | 107.5 | 79.6 | 107.5 | 79.6 | |
| Gross cash flow from operating activities | 6.7 | 8.4 | 21.5 | 21.3 | |
| Free cash flow | 1.4 | 0.4 | 4.6 | -1.8 | |
| Change in cash and cash equivalents | -1.9 | -0.3 | 2.1 | -4.1 | |
| Cash and cash equivalents | 18.9 | 16.8 | 18.9 | 16.8 | |
| Equity ratio % (Equity/Total Liabilities) | 67.4 | 66.7 | |||
| Debt Equity ratio % (Debt/Equity) | 5.3 | 4.2 | |||
| Personnel at end of period | 704 | 758 | |||
| 1) Adjusted result for the period = underlying results before one-time items. One-time expenses included provision of EUR 3.1 million receivable from sale of business assets and EUR 3.1m write-off onaccounts receivable. |
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Unless otherwise stated, all figures presented below are for the financial period 1-12/2025 and the figures for comparison are for the corresponding period in 1-12/2024.
Guidance for 2026
- Net sales are expected to grow by low to mid single digit percentage in constant currency terms.
- Free cash flow guidance of > EUR 5 million for the full year.
Guidance for 2026
- The Free Cash Flow guidance for 2026 is based on the company’s current market outlook and exchange rate assumptions, especially devaluation of US dollar against the EUR.
From CEO’s Desk:
Tecnotree enters 2026 with positive free cash flow, a healthy order book and having delivered on 2025 key metrics
Tecnotree delivered full-year net sales of EUR 72.4 million (71.6), representing growth of 1.2% YoY in reported terms and 8.2% in constant currency, in line with our guidance. Reported growth was impacted by U.S. dollar devaluation during the year.
Operating result improved to EUR 25.6 million (23.8), with the operating margin expanding by 210 basis points to 35.3% (33.2%), achieving the guidance. The improvement was driven by revenue mix, cost optimization measures, and utilizing AI-driven operational and delivery efficiencies. The company attained the targeted operating expenses reduction initiated in Q2 2024. Net result for the full year was EUR 10.2 million (8.3), a 22.7% increase YoY.
The Q4 result included one-time items totaling EUR 6.2 million, comprising a EUR 3.1 million provision for receivables from the sale of business assets and a EUR 3.1 million write-off on accounts receivable, continuing compliance to standard accounting processes and prudent caution.
Gartner's 2025 Magic Quadrant recognition of Tecnotree as a Visionary for AI in CSP operations, coupled with industry-leading TM Forum Open API certifications, validates our market leadership position in AI in telecom.
The order book at year-end reached EUR 107.5 million (79.6), an increase of 35.0% YoY and for the first time, the backlog exceeded EUR 100 million.
The company delivered positive free cash flow for every quarter of the year, culminating in full-year free cash flow of EUR 4.6 million (-1.8).
With more disciplined collections, cash and cash equivalents at year-end stood at EUR 18.9 million (16.8) and DSO days reduced by 17% to 146 (176).
In 2025, we reduced our frontier country foreign exchange exposure to 17% of net sales, from 27% in the previous year. Our strategic focus on Tier 1 accounts and growth in mature and dollar-denominated markets contributed to this reduction in our frontier exposure to 17%
Annual recurring revenue (ARR) increased to 45.7% of total net sales (43.4% in 2024), driven by growth in our Development and Operations (DevOps) business model as more customers transitioned to support contracts post transformation completion.
Headcount efficiency improved, with total personnel reducing to 704 (758) while delivering higher revenue, demonstrating the productivity gains from AI/ML tooling.
Capitalized development investments (capex) represented 13.4% of net sales (18.2%), slightly above the 12% guidance target due to investments required for delivery of large transformation projects secured during the year.
Net sales growth remained modest in reported terms and continues to be influenced by foreign exchange volatility and milestone-based revenue recognition from our clients. The company operates in a competitive telecom market environment, with continued focus on operational execution, revenue predictability, and cash generation. I would like to thank our customers, shareholders, and my Tecnotree colleagues for their continued support and trust as we build a stronger, more resilient Tecnotree.
Q4 2025 Highlights – Net sales growth, operating result and positive free cash flow as per guidance
- Net sales increased YoY.
Net sales in the fourth quarter were EUR 19.5 million (17.6), representing an increase of 11.1% YoY in reported terms. Revenue mix during the year increasingly reflected managed services and delivery phases of large transformation programs - Operating result improved compared to the prior year.
Operating result increased to EUR 12.3 million (10.9), with an operating margin of 63.1% (61.7%). - Positive free cash flow maintained.
Free cash flow for the quarter was EUR 1.4 million (0.4), reflecting continued cash generation during the period. - Limited foreign exchange impact during the quarter.
Foreign exchange resulted in a gain of EUR 0.1 million (-0.3), indicating a reduced currency impact compared to earlier periods. - Net result higher YoY.
Net result for the quarter amounted to EUR 4.2 million (0.5).
Webcast for investors and media
Tecnotree webcast of results for FY2025 is Thursday, 26 February 2026 at 10.00 a.m. EET (Helsinki).
Shareholders and potential investors are invited to pre-register a zoom account and join the online presentation via this link: https://zoom.us/j/99841237231.
The event will be recorded, and the presentation materials will be made available on the company’s website investors.tecnotree.com.
Annual General Meeting
Tecnotree’s Annual General Meeting 2026 is planned to be held on Tuesday, 7 April 2026. The plan is to offer a Hybrid meeting in Helsinki, Finland, similar to last year.
Events after end of the period
Public Tender Offer for the Shares and Equity Securities of Tecnotree Corporation
On 27 January 2026, Tecnotree Corporation announced that Resilience Investment Holdings Ltd, acting on behalf of a consortium comprising Helios Investment Partners, Fitzroy Investments Limited and Padma Ravichander (the “Consortium”), has made a voluntary recommended public all-cash tender offer for all issued and outstanding shares and certain other equity securities of Tecnotree Corporation.
More information from the public tender of can be found from https://investors.tecnotree.com/en/tender_offer
Further information
Padma Ravichander, CEO, tel +97 156 414 1420
Indiresh Vivekananda, , CFO, tel +971 56 410 8357
Attachments
About Tecnotree
Tecnotree is a global provider of IT solutions for the management of services, products, customers and revenue for Communications Service Providers. Tecnotree helps customers to monetise and transform their business towards a marketplace of digital services. Together with its customers, Tecnotree empowers people to self-serve, engage and take control of their own digital life.
Tecnotree is listed on Nasdaq Helsinki (TEM1V). For more information, please visit
