Sinch Reports Third Quarter 2025 Results Highlighting Profitability and Growth Strategies

Sinch's Performance in Q3 2025

On November 5, 2025, Sinch AB (publ), a leader in cloud communications, unveiled its consolidated results for the third quarter of 2025. The report indicates a stable market performance despite several unfavorable currency effects impacting revenues and profitability.

Financial Overview

Sinch reported net sales of SEK 6,659 million for Q3, which reflects a year-on-year comparison to SEK 7,150 million. Notably, while net sales remained stable organically, negative currency trends led to a 7% decline in reported sales. The gross profit for this quarter was SEK 2,318 million, down from SEK 2,406 million, albeit showing a 5% organic increase when excluding currency effects. The EBITDA also followed suit, reaching SEK 851 million, a significant 16% organic increase but impacted by an 8% decrease due to currency fluctuations.

Despite these challenges, adjusted EBITDA held steady at SEK 915 million, down from SEK 923 million. The quarter ended with a net loss of SEK 10 million, improving from a loss of SEK 6,095 million during the same period last year.

Free cash flow showcased a modest decrease from SEK 293 million to SEK 244 million, with cash conversion at 38% over the last 12 months. It is also notable that Sinch repurchased a substantial 15,279,642 shares for SEK 519 million, bringing treasury stock to 1.8% of total shares outstanding by the end of September.

Key Developments

The quarter highlighted several strategic advancements for Sinch. The company solidified its position within the AI landscape, which gained recognition as an essential growth driver by many innovators employing Sinch's API products. Furthermore, the research firm Gartner confirmed Sinch as a Magic Quadrant Leader in the CPaaS (Communications Platform as a Service) sector for the third consecutive year.

Sinch's venture into RCS (Rich Communication Services) for Business also gained momentum, achieving a complete rollout in partnership with the largest mobile operators in the United States. This service has seen its transaction volume triple year-on-year, demonstrating significant traction in emerging markets, particularly in India and Latin America.

In addition to capturing growing market demands, Sinch appointed Daniel Morris as the new Chief Product Officer to oversee product innovation and further bolster the company's offerings.

CEO Insights

Laurinda Pang, CEO of Sinch, shared her insights regarding the market dynamics: "Market growth remains stable, but the structural shifts prompted by conversational messaging and AI are accelerating. We are at the forefront of this change. The use of AI alongside conversational messaging is a key market driver and a core component of our strategy!"

Pang emphasized that these developments are not merely about adding AI features but about creating a comprehensive, intelligent communications platform that offers new opportunities for clients.

Looking ahead, Sinch remains optimistic. Key partnerships have generated 5% gross profit growth year to date and confidence in continued growth is strong. Sinch's commitment to expanding its marketplace through innovative solutions and strategic partnerships underscores its positioning for long-term sustained profitability.

Upcoming Events

As part of this release, a conference call and webcast are scheduled at 1400 CET, where CEO Laurinda Pang and CFO Jonas Dahlberg will elaborately discuss the findings. Participants can register for teleconferencing or join the webcast via the provided links. For more queries, stakeholders can contact Sinch's Investor Relations or Corporate Communications departments for detailed insights.

With a continuous focus on redefining communication paradigms, Sinch stands at the cusp of leveraging AI advancements to enhance customer experiences while driving down structural barriers in digital communication.

About Sinch

Founded in 2008 and headquartered in Stockholm, Sweden, Sinch thrives on solving communication challenges through innovative technology solutions, providing a platform relied upon by over 190,000 businesses globally. Sinch is listed on NASDAQ Stockholm under the ticker symbol XSTO: SINCH.