Prenumeration
Beskrivning
| Land | Finland |
|---|---|
| Sektor | Informationsteknik |
| Industri | Programvara |
F-Secure Corporation | Stock exchange release | 29 April 2025 at 8:00 EEST
F-Secure Interim Report 1 January–31 March 2025: Building momentum with new strategic partnership
This is a summary of F-Secure Corporation’s January–March 2025 Interim Report. The full report is a PDF file attached to this stock exchange release and available on the company website at www.investors.f-secure.com.
F-Secure Corporation organize a webcast today at 13:00 EEST, details of the event and how to participate can be found at the end of this release.
Highlights of January–March 2025
- Revenue increased by 2.0% to EUR 37.1 million (EUR 36.4 million).
- Revenue from Partner channel increased by 2.2% to EUR 30.1 million (EUR 29.4 million).
- Revenue from Direct channel increased by 0.9% to EUR 7.0 million (EUR 6.9 million).
- Adjusted EBITA increased by 3.5% and was EUR 13.1 million (EUR 12.7 million), 35.4% of revenue (34.9%).
- Earnings per share (EPS) amounted to EUR 0.03 (EUR 0.03).
- Cash flow from operating activities before financial items and taxes was EUR 12.0 million (EUR 11.8 million).
- Net debt amounted to EUR 157.1 million (EUR 179.6 million) and leverage ratio was 2.9x.
- After the reporting period, on 1 April 2025, F-Secure's Annual General Meeting resolved a dividend of EUR 0.04 per share for the financial year that ended on 31 December 2024, to be paid in two instalments.
Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented. Figures in this interim report are unaudited.
Outlook for 2025 (unchanged)
Growth: F-Secure expects mid-single digit revenue growth for 2025.
Profitability: The group’s adjusted EBITA is expected to be approximately on the same level as in 2024 (EUR 52.2 million).
Background for the outlook:
- F-Secure expects the core consumer cyber security market to grow mid-single digit CAGR mid- to long-term1. F-Secure sees the potential to grow faster than the market focusing on partner channel and its offering around Embedded Security and Scam Protection. The growth may be moderated due to the uncertainties around consumer sentiment in certain markets.
- Partner business and especially Embedded Services are expected to drive F-Secure growth in 2025. Growth is expected to accelerate throughout the year as new partners and services gradually start to generate revenue.
- Direct business revenue development is expected to be negative due to the continued strategy of refraining from paid customer acquisition.
- Gross margin is expected to be slightly lower than in 2024 (86.2%) due to growth of strategic partners in embedded solutions, as these typically have a lower gross margin level than the F-Secure Total business.
- F-Secure continues to develop its services, operations and production capabilities further to meet the requirements of Tier 1 partner. These efforts are still reflected in the higher cost base. As the business scales we expect to leverage continued service level investments across a wider partner base, leading to positive Adjusted EBITA % development over time.
- Capex is expected to remain at a similar level as in 2024. However, new product development projects related to partner demand may impact the outcome.
1 Industry analyst views such as Gartner and IDC, and F-Secure management estimates
Financial targets
F-Secure's medium-term financial targets and dividend policy for the company reflect the company’s growth ambitions and strategic direction. Year 2025 is still a business ramp-up year, after which the journey towards achieving the financial targets is expected to accelerate.
- Growth: High single digit growth (CAGR) with additional significant upside from major Tier 1 deals
- Profitability: Adjusted EBITA margin approaching 40% as revenue reaches EUR 200 million
- Dividend Yield: Around or above 50% of net profit, which can be adjusted as long as leverage is higher than the targeted level
- Leverage: Net debt / adjusted EBITDA ratio below 2.5x, excluding temporary impact from acquisitions
F-Secure Corporation follows the Rule of 40 metric as internal performance measurement and guiding principle, according to which the combined revenue growth rate and profitability margin should be equal to or greater than 40%.
Financial Performance
| EUR million | 1-3/2025 | 1-3/2024 | Change % | 1-12/2024 |
|---|---|---|---|---|
| Revenue | 37.1 | 36.4 | 2.0% | 146.3 |
| Gross Margin | 31.7 | 31.2 | 1.6% | 126.0 |
| % of revenue | 85.4% | 85.7% | 86.2% | |
| Operating expenses1 | -18.3 | -18.5 | -0.8% | -73.3 |
| Sales & Marketing | -8.1 | -8.5 | -4.1% | -33.4 |
| Research & Development | -6.5 | -6.2 | 4.5% | -25.4 |
| Administration | -3.7 | -3.8 | -2.3% | -14.5 |
| Adjusted EBITA1 | 13.1 | 12.7 | 3.5% | 52.2 |
| % of revenue | 35.4% | 34.9% | 35.7% | |
| Items affecting comparability (IAC)2 | 0.0 | 0.2 | -77.3% | -1.4 |
| EBIT | 9.4 | 10.0 | -6.0% | 38.4 |
| % of revenue | 25.3% | 27.4% | 26.3% | |
| Earnings per share (EUR)3 | 0.03 | 0.03 | 6.3% | 0.12 |
| Earnings per share, adjusted for PPA amortization (EUR)3 | 0.04 | 0.04 | 5.4% | 0.16 |
| Shareholder's equity per share, EUR | 0.29 | 0.16 | 0.27 | |
| Operating cash flow | 9.7 | 7.9 | 22.7% | 38.8 |
| Cash conversion % | 66.5% | 63.3% | 80.5% | |
| Deferred revenue | 27.2 | 27.9 | -2.4% | 28.5 |
| Net debt (+) / Net cash (-) | 157.1 | 179.6 | -12.5% | 163.6 |
| Net debt/Adjusted EBITDA | 2.9 | 3.54 | 3.1 | |
| Gearing, % | 317.9% | 654.3% | 356.0% | |
| Equity ratio % | 19.1% | 10.0% | 17.4% | |
| Personnel at the end of the period | 506 | 497 | 1.8% | 529 |
1 Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
2 A reconciliation and breakdown of items affecting comparability is presented at the end of this report.
3 Based on the average number of shares for the reporting period.
4 Net debt/Adjusted EBITDA for the last 12 months includes Lookout consumer business unit EBITDA on an illustrative basis as if the acquisition had been made on the first day of the period in question.
Timo Laaksonen, President and CEO
The first quarter marked commercial achievements to enable future growth and strategic progress for F-Secure. We forged both new partnerships and extended and expanded several existing agreements with key partners, solidifying our position as a leading player in cybersecurity. In March we signed a partnership agreement with Orange Group, one of the world’s leading telecommunications operators with and extensive footprint in Europe and Africa. By including F-Secure’s Total solution in its value proposition Orange will be making the highest level of security accessible to millions of subscribers across Europe starting from the second half of 2025. In February, Japanese telecommunications giant SoftBank launched a new version of its consumer security app for mobile users, integrating identity protection powered by F-Secure. We also partnered with a sizable Nordic fixed broadband operator who will launch Total solution by the end of the second quarter of this year.
In the first quarter, F-Secure's revenue grew by 2.0%, driven by favorable US dollar exchange rates. In today's increasingly complex geopolitical landscape, with heightened trade protectionism, our business of selling software locally in the US has remained resilient. However, economic volatility has led to intensified exchange rate fluctuations, with the US dollar having the most significant impact on F-Secure. Profitability (adjusted EBITA %) exceeded our expectations in the quarter.
During the quarter, we enhanced our Embedded Security portfolio with a host of new Scam Protection capabilities.
The year started with a renewed organization and operating model, following the change negotiations at the end of last year. Our new customer-centric sales and service teams are now fully operational.
On April 1, F-Secure's Annual General Meeting 2025 elected a new Board of Directors. Four new members bring expertise in global technology, the telecom industry, our growth markets such as Tier 1 partners and the APAC region, AI and big data, and customer product and service innovation. These are critical areas in our strategy to become the undisputed leading partner for the world's top service providers.
F-Secure has always been committed to protecting people, but today’s evolving threats—like scams, social engineering, and mass deception—are becoming increasingly complex. To stay ahead, we’re now applying AI across the entire company to boost innovation, productivity, and agility. We’ve sourced and built a broad range of tools and capabilities to rethink our core processes, services, products, and operations. AI is quickly becoming a helpful co-worker, supporting our people in reaching their goals and enabling us to work smarter and faster.
With these early-year advancements, we continue to drive business growth and realize our vision of becoming the world's #1 security experience company.
Additional information
This is a summary of F-Secure Corporation’s January–March 2025 Interim Report. The full report is a PDF file attached to this stock exchange release and available on the company website at www.investors.f-secure.com.
Financial reporting in 2025
In 2025, F-Secure Corporation will publish financial information as follows:
- Half-year Financial Report for January–June 2025 on Friday, 18 July 2025
- Interim Report for January–September 2025 on Tuesday, 28 October 2025
For additional information, please contact:
Chief Financial Officer Sari Somerkallio, tel. +358 40 356 9251, investor.relations@f-secure.com
Webcast
Everyone interested in F-Secure is welcome to follow the live webcast on the result publication day at 13:00 Helsinki time (EEST). In the webcast, F-Secure’s President and CEO Timo Laaksonen and CFO Sari Somerkallio will present the results and after the presentation there will be time for questions. The event can be followed at https://fsecure.events.inderes.com/q1-2025
Analysts following F-Secure are invited to the presentation at the company headquarters, Tammasaarenkatu 7, Helsinki, Finland.
A recording of the event will be available after the event on the company's website.
F-Secure in brief
F-Secure is Finland headquartered and globally operating consumer cyber security company. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki Ltd. Read more: www.f-secure.com