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Ekinops H1 2025 Financial Results Overview

On July 28, 2025, Ekinops, listed on Euronext Paris under the symbols FR0011466069 and EKI, announced its financial results for the first half of 2025, which ended on June 30. These results have been carefully reviewed and approved by the Board of Directors, with the statutory auditors conducting an interim review.

Ekinops reported a revenue of €57.2 million for H1 2025, which is nearly on par with the previous year's H1 results, reflecting a slight decrease of 1% when adjusted for constant scope and exchange rates. The company attributed this stability in revenue to the contributions from Olfeo, a cybersecurity software provider acquired in May 2025. This acquisition is projected to enhance Ekinops’ offerings significantly and has already contributed €0.5 million to the revenues of H1 2025.

The company's gross margin for this period stood firm at approximately €32.0 million, yielding a gross margin rate of 55.9%, which is slightly lower than last year's figure at 56.1%.

Financial Highlights

• - Revenue: €57.2 million
• - Gross Margin: €32.0 million (55.9%)
• - EBITDA: €7.5 million (13.1% EBITDA margin)
• - Current Operating Income: €3.4 million (5.9% margin)

One of the major highlights was Ekinops’ current operating income which saw a significant rise of 14%, reflecting Ekinops' continuous efforts in managing its operating expenses effectively. The current operating margin increased to 5.9% compared to 5.1% noted in H1 2024.

However, the company did face challenges within its Access solutions business, with a decline of 7% in sales, primarily due to a notable drop (10%) from its largest customer. Despite this, excluding this major customer, Ekinops experienced double-digit growth in the Access sector.

Conversely, sales of optical transport equipment experienced a robust rebound, increasing by 10% over the first half of 2025, driven largely by significant equipment projects in Europe, especially Germany. Additionally, Ekinops’ Software Services surged by 22%, now representing 20% of the group's total revenue. This growth trajectory reflects the increasing importance of software-driven services within the telecommunications landscape.

International Performance

Internationally, Ekinops saw its business grow by 4%, which is encouraging given the previous year's decline. Overall, revenues from outside France accounted for 59% of total sales. Notably, North America saw a decline of 8% in constant currency terms during this period, although recovery trends were observed in the latter half of Q2.

Cash Flow and Financial Position

Ekinops managed to maintain a positive operating cash flow of €1.0 million during H1 2025, despite nearly steady business activities. The company reported an increase in working capital requirements, reflecting improved inventory management.

While cash flow from investments totaled negative €15.4 million, primarily due to acquisitions and capitalized R&D costs, cash flow from financing activities contributed positively, resulting in a decrease of cash position by €9.6 million, ending H1 2025 with a net cash position of €11.0 million.

Future Outlook

Looking ahead, Ekinops remains optimistic about the recovery of the telecommunications market, driven by emerging technologies like AI and cloud computing. The company anticipates a gradual improvement as it progresses through the second half of 2025. It is aiming for consolidated revenue between €110 million and €120 million for the full year, while it continues to strengthen its cost control measures throughout the organization.

Ekinops also emphasizes its commitment to its Bridge Plan, focused on positioning itself in dynamic market segments such as cybersecurity and data center interconnection. The acquisition of Olfeo is set to enhance its capabilities in providing comprehensive cybersecurity solutions, establishing Ekinops as a significant player in this niche as early as 2026.

With ongoing investments in innovative product development and a strategy aimed at returning to double-digit growth, Ekinops is steering towards a promising future, aiming for over 30% of its annual revenue from Software Services by 2028, with a target EBITDA margin of around 20%.

In conclusion, Ekinops' H1 2025 results reflect resilience and strategic adaptability in a complex and evolving landscape, with clear pathways laid out for future growth and technological advancement.