Q4 2025 SSH Communications Security Oyj Earnings Call Transcript
Key Points
- SSH Communications Security Oyj (FRA:XXH) achieved a strategic partnership with Leonardo, a major player in aerospace, defense, and cybersecurity, which is expected to significantly boost growth opportunities.
- Subscription sales grew by 11%, with PrivX being the main growth product, showing a 17.7% increase in sales during the fourth quarter.
- The Asia Pacific region experienced a 21% growth, indicating strong performance in local markets.
- The company has centralized its product management and marketing efforts under a new Chief Product Officer, aiming to enhance market focus and demand generation.
- SSH Communications Security Oyj (FRA:XXH) received positive reviews from six different analysts, including recognition in Gartner's Magic Quadrant for Privileged Access Management.
- Overall net sales declined by 21% in the fourth quarter, primarily due to the absence of large license deals and a weakened US dollar.
- EBITDA was only EUR0.1 million, reflecting the impact of reduced sales on profitability.
- The US market saw a decline in revenue when measured in euros, despite being flat in US dollars, highlighting currency exchange challenges.
- NQX growth has been slower than expected, with significant breakthroughs anticipated to take longer due to market limitations and certification processes.
- The company is still working on increasing its visibility with major analysts like Forrester and Gartner, which has been a challenge in gaining customer trust.
Good morning, and welcome to SSH Communications Security's Q4 and full year 2025 review and update on where we are and where we are heading. I am Rami Raulas, the CEO of SSH Communications Security. And today, with me, I have Michael Kommonen, CFO at SSH Communications Security. This session is facilitated and will be recorded using our own SalaX Secure Messaging platform, and the recording will be available later today on our website under the Investor pages.
All right. Let's get going. So I wanted to share a bit of the summary of last year and Q4. So there were challenges and there were positive signs overall. So overall, our revenue was pretty flat, didn't grow. We didn't have license sales much last year. This is fully in line with our strategy, by the way. We are aiming for full recurring revenue and subscription sales, which annual recurring revenue is now indeed 97% of our revenue.
At the end of 2024, we had a major license deal for file encryption solution. And we didn
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