Q3 2025 Zalaris ASA Earnings Call Transcript
Key Points
- Zalaris ASA (STU:81Y) achieved a record quarterly revenue of NOK375 million, marking a 10.3% year-over-year increase, showcasing strong organic growth.
- The company reported an adjusted EBIT of NOK47 million, a 27% increase from the previous year, resulting in the strongest Q3 margin to date at 12.6%.
- Zalaris ASA (STU:81Y) secured a EUR40 million revolving credit facility to refinance its existing bond loan, reducing annual interest expenses and enhancing financial flexibility.
- The company renewed its strategic partnership with SAP, ensuring continued evolution on SAP's S4 Hana cloud platform, positioning it at the forefront of cloud and AI-driven HR innovation.
- Managed services, representing 77% of total revenue, grew by 14% year over year, reflecting new customer implementations and expanded service volumes with existing clients.
- Zalaris Consulting's revenue growth was only 1% year over year, below the target of 5%, due to lower activity levels in Germany and Poland.
- The company experienced higher costs in the APAC region, which were necessary to support strong revenue growth but are expected to be one-off in nature.
- Net operating cash flow decreased to NOK10.9 million for the third quarter compared to NOK48.4 million last year, primarily due to increased working capital.
- The consulting segment saw a slowdown, which could indicate cautious customer behavior in launching new projects, potentially impacting future growth.
- The migration to SAP's S/4 HANA Cloud will bring a modest increase in operating costs, although these are expected to be offset by efficiency gains.
Good morning. I'm Hans-petter Mellerud , the CEO and founder of Zalaris. Joining me today for this webcast presentation of Solaris quarter three '25 results is our CFO, Gunnar Manum.
We are using Teams for this purpose and hope that you will find it informative and engaging. You can use the Q&A function to ask questions, which we will answer at the end of the presentation. Please note that the presentation is being recorded. You can access the recording in the investors section of our website.
First, we look at some of the highlights of the quarter.
Quarter three '25 marked another record milestone for Zalaris. We delivered all-time high quarterly revenue of NOK375 million, up 10.3% year over year, demonstrating solid organic growth across regions and the continued scalability of our business model.
Our adjusted EBIT reached 47 million, at 27% increase from last year, resulting in our strongest Q3 margin to date at 12.6%. This reflects ongoing efficiency improvements and the success of
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