from MGI - Media And Games Invest SE (isin : SE0018538068)
Verve Group shows accelerated new customer growth in Q4 2025, leveraging targeted investments in sales force expansion
Verve Group shows accelerated new customer growth in Q4 2025, leveraging targeted investments in sales force expansion Verve Group shows accelerated new customer growth in Q4 2025, leveraging targeted investments in sales force expansion
Stockholm, 19 February 2026 – Verve Group SE (ISIN: SE0018538068), a fast-growing software platform in the advertising technology industry, reports a solid increase in revenue and gross margin for the fourth quarter of 2025, with final figures showing a slight improvement over the previously published preliminary results on the EBITDA levels. This performance is driven by the Group’s enhanced technology platform and its focus on scalability and AI efficiency, which accelerated revenue and operational earnings. Furthermore, the now available KPIs clearly outline how the Company‘s intense investments into sales force expansion since Q3 are already delivering a significant, purely organic increase in customer onboarding as well as customer scaling. With growth of the customer base significantly exceeding organic revenue growth, this strong foundation sets the stage for further accelerating growth momentum as the Group continues to invest in its sales force expansion over the remainder of 2026 and beyond. The key figures for business development are as follows:
* Changes in revenue recognition according to IFRS 15 affects reported revenue from Q3 2025 onwards In the fourth quarter, typically the seasonally strongest of the year, Verve Group delivered a clear step-up in performance. On a like-for-like basis, revenue increased by 9.9 percent to EUR 193.8 million (Q4 2024: EUR 176.4 million). This growth was achieved despite significant FX headwinds, as the U.S. dollar depreciated by 9.0 percent year-on-year. Since 83 percent of the Group's revenue is denominated in USD, this had a negative translation effect on reported figures. Structurally, the Group recognized a clearly strengthened organic contribution, which accounted for 5.3 percent of total revenue growth. This organic growth was complemented by the acquisitions of Captify Technologies and Acardo, which performed as expected and contributed 12.2 percent to revenue growth. These positive developments were realized despite a tough comparison base, as the prior-year quarter benefited from exceptional political advertising spend. The successful completion of the platform unification is clearly reflected in the Group’s profitability metrics. A key highlight of the period is the substantial expansion of the gross margin to 44.6 percent, up from 36.6 percent in Q3 (Q4 2024: 40.4 percent). This improvement underscores the efficiency of the unified technology stack and the Company's strengthened operating leverage. While gross margin expanded, the adjusted EBITDA margin for Q4 amounted to 25.1 percent (Q4 2024: 27.5 percent) at an adjusted EBITDA of EUR 48.6 million (Q4 2024: EUR 48.5 million). This development stands in direct context with the Company’s strategic initiative to massively expand its sales teams. While these investments incur upfront personnel costs that impact EBITDA in the short term, they are the primary driver for the accelerated organic growth expected throughout 2026 and beyond. Operating cash flow before changes in working capital reached a strong EUR 45.6 million. The reported operating cash flow, in contrast, was substantially lower at EUR 20.1 million (Q4 2024: EUR 55.5 million) and thus does not fully reflect the operational momentum. In previous years, the Company was able to compensate working capital needs by securitization of receivables. However, limitations on that process - in combination with significant M&A payments - strained the cash position in the fourth quarter 2025. Additionally, the rapid growth required the absorption of a negative working capital swing, driven by the industry-typical timing mismatch between payments from advertisers (typically 90 days) and payments to publishers (typically 45 days). To address this, management is placing a stronger emphasis on liquidity management in 2026, aiming to substantially reduce the working capital impact of future growth and significantly improve the cash conversion rate. Net debt increased to EUR 445.9 million by year-end (31.12.2024: EUR 351.2 million), reflecting recent M&A activity. Nevertheless, the Company successfully reduced its adjusted leverage ratio to 3.0 (Q3: 3.1). Even more notable was the increase in the Cash Interest Coverage Ratio to 4.3 (31.12.2024: 3.3), confirming the Company's solid financing structure. The Group’s operational health is further evidenced by its key performance indicators. Client retention reached 99 percent in the fourth quarter (Q4 2024: 97 percent) - the highest value ever recorded in the Company's history - proving the high degree of customer satisfaction with the unified platform. Most notably, both the total number of software clients and the number of large software clients saw strong organic growth, increasing by 6.8 percent and 5.3 percent over Q3 respectively. With total client growth staying ahead of organic revenue growth, these figures clearly indicate that investments in sales team expansion are yielding tangible results. The Company is therefore confident that this strategic move will translate into significantly accelerating growth momentum as the year 2026 proceeds. As anticipated, the net dollar expansion rate also recovered noticeably from the lows experienced during the platform unification phase reaching 91.6 percent (Q4 2025: 109.5 percent). It is important to note that the net dollar expansion rate is calculated based on the trailing four quarters of revenue. Consequently, the negative impacts experienced in Q2 and Q3 2025 will continue to weigh on the moving average until they fully rotate out of the calculation. The full normalization and comparability with pre-unification levels thus typically requires a recovery period of around nine to twelve months. “The past quarters were operationally demanding and required significant effort across the organization. However, with the successful completion of the platform unification in 2025, we have reached a key strategic milestone that forms a strong foundation for our future development,” said Remco Westermann, CEO of Verve Group SE. “The positive impact of this transformation became evident in the fourth quarter, which was characterized by strong operational performance. Our technology is now more powerful, scalable and efficient than ever before, and these advances are increasingly reflected in both revenue and earnings. Against this background, we look ahead to fiscal year 2026 with confidence and expect the strong momentum from the fourth quarter to continue.” Outlook As published in the release of the Company’s preliminary results, the Management Board expects a moderate to slightly positive market environment for the 2026 fiscal year in Verve’s core U.S. market, anticipating market growth in a range of 7 to 9 percent for the relevant market segments. Following the strong growth momentum in the fourth quarter and ongoing investments into growth, the Company expects the positive operational trend to continue. Revenue development is expected to follow the typical seasonality of the industry, with the first quarter starting slower and momentum building progressively over the course of the year. To accelerate this growth, Verve Group plans to invest another EUR 10 million into the continued expansion of its global sales force in 2026. While the costs for these hires are incurred immediately, the typical ramp-up period for sales talent is 9 to 15 months. This creates a temporary timing mismatch, particularly in the first half of 2026, where investment precedes revenue. Consequently, the Company expects a 'front-loaded' investment phase in Q1 and Q2. As these sales cohorts reach full productivity, management anticipates momentum to shift significantly in the second half of 2026 and into 2027. Based on these factors, the Company expects revenue for fiscal year 2026 in a range of EUR 680 to 730 million and adjusted EBITDA in a range of EUR 145 to 175 million. As the exact timing of the "sales-productivity inflection point" is difficult to predict with quarterly precision, the Management Board has intentionally established a wider guidance range with a robust margin of safety. In order to give existing and interested investors an even better understanding of the Company’s operational performance in the last quarter, Verve will host an interactive webcast including Q&A today at 15:00 CET. Equity research analysts, institutional investors and members of the press are invited to register for this event including Q&A access via the link https://www.webcast-eqs.com/verve-2025-q4?qa=$2y$10$WViIohCoyR5OKBkmxKabAeJcYhceW8ghNsscU/OnS0GkbIQNoUPxa. Please note that only corporate email addresses will be accepted for this registration type. As a service to the Company’s private investors, the webcast can be followed live in a listen-only mode via the link https://www.webcast-eqs.com/verve-2025-q4. A recording of the webcast will be made available publicly on the investor relations section of the Company’s website at https://investors.verve.com/investor-relations/financial-reports-and-presentations/. Further information about Verve Group and its subsidiaries can be found at www.verve.com.
Contact: Ingo Middelmenne Sören Barz
Verve Group is a fast-growing software platform in the advertising technology industry, connecting advertisers seeking to buy digital ad space with publishers monetizing their content. Driven by its mission “Let’s make media better.” Verve provides responsible, AI-driven advertising solutions that deliver superior outcomes for advertisers and publishers. The company focuses on emerging media channels like mobile in-app, connected TV and others. In anticipation of growing demand from users and advertisers for greater privacy, Verve has developed cutting-edge ID-less targeting technology that enables efficient advertising within digital media without relying on identifiers such as cookies or IDFA. Thanks to its strong differentiation and execution, Verve has achieved a revenue CAGR of 32 percent over the past five years reaching reported revenues of 551 million euros in 2025 at an adj. EBITDA margin of 22 percent. Verve's main operational presence is in North America and Europe, and it is registered as a Societas Europaea in Sweden (registration number 517100-0143). Its shares - with the ISIN SE0018538068 - are listed on the regulated market of the Frankfurt Stock Exchange (Ticker: VRV) and on Nasdaq First North Premier Growth Market in Stockholm (Ticker: VER). Verve has an outstanding bond with the ISIN: SE0023848429. The Companies certified advisor on the Nasdaq First North Premier Growth Market is FNCA Sweden AB; contact info: info@fnca.se.
Catch-up with Verve on upcoming conferences and roadshows in 2026
File: Verve Group SE - Interim Report Q4 2025 |
2278340 19.02.2026 CET/CEST