Tecnotree Maintains Momentum with Sixth Consecutive Quarter of Profit and Cash Flow

ESPOO, Finland--(BUSINESS WIRE)--Tecnotree, a global digital platform and services leader for AI, 5G, and cloud-native technologies, announced today its Q3 2025 results, summarizing financial performance year-to-date ending 30 September 2025.

Year-to-Date Financial Highlights as of Q3 2025:

• Positive free cash flow EUR 3.2 (–2.2) million, sixth consecutive quarter of cash-positive operations.
• Revenue in constant currency EUR 56.6 (54.0) million, +4.8%.
• EBIT in constant currency EUR 14.9 (13.0) million, +15.0%.
• Annual recurring revenue EUR 25.1 (23.2) million, +8%.
• Order backlog EUR 105.5 (75.1) million, +40%.

Commenting on the results for the third quarter of 2025, Padma Ravichander, CEO of Tecnotree, says:

“Tecnotree’s Q3 2025 results reflect our disciplined focus on profitable order book execution, with year-to-date operating result up 15% year on year in constant currency. Maintaining cash-positive operations for the sixth consecutive quarter with EUR 3.2 million free cash flow demonstrates the strength of our strategy and operational discipline. Tecnotree's transformation from a turnaround to a growth story is complete.

The results underscore our continued investment in expanding delivery capabilities in developed markets, including Europe and the Americas. By strengthening our local, high-skill talent and accelerating project execution, we are building a strong foundation for sustainable recurring revenue growth and long-term value creation.

The medium-term positive trajectory is evident in our order book and constant currency revenue growth (versus a negative market growth in 2025). However in this quarter, whilst there was a tailwind from last year’s cost restructuring, there were near term profit margin headwinds from US dollar weakness, as well as strategic cost deployment ahead of new contract wins.

Our AI-native digital platforms continue to gain traction globally. Strategic partnerships in Europe and the Americas extend our reach beyond traditional BSS, enabling Tier-1 operators to modernize and monetize networks faster. During the third quarter, Gartner upgraded Tecnotree’s position in its Magic Quadrant for AI in CSP Customer and Business Operations 2025 from “Niche Player” to “Visionary” for our execution capability and innovation through our Tecnotree Moments and Sensa platforms. The use of Agentic AI Chatbots enhances customer self-service, improving explainability, transparency and contextual awareness leading to greater revenue monetization. In addition, AI is not just being added to every product, AI is our product. Every module in the D-Stack has embedded intelligence help us move from AI-enabled to an AI-native BSS. Confirming the reason why Gartner Visionary IDC named Tecnotree as a Major Player for Worldwide Customer Experience Platforms for Telecommunications 2025.

We further strengthened our operational efficiency, maintaining capex at a disciplined 11.9% of sales year-to-date, well within guidance, while improving DSO to 154 days, down from 175 in H1 2025, reflecting effective working capital management.

Looking ahead, our priorities remain clear: converting backlog into cash, executing large transformation programs across Europe, Americas, and Africa, and continuing operational efficiencies. Management reiterates its full-year 2025 guidance, expecting net sales growth in constant currency of low-to-high single digit, operating result margin expansion of at least 200 basis points, and free cash flow exceeding EUR 4 million. I want to thank our employees, customers, and shareholders for their trust and continued support as we execute the next phase of Tecnotree’s strategy.”

About Tecnotree

Tecnotree is a 5G-ready digital Business Support System (BSS) player, with AI/ML capabilities and multi-cloud extensibility. Tecnotree leads the way on the TM Forum Open API Conformance with 59 certified Open APIs including 9 real-world open APIs, a testament to the company’s commitment to excellence, and continuously striving to deliver differentiated experiences and services to both CSPs and DSPs. Our agile and open-source digital BSS Stack comprises the full range (order-to-cash) of business processes and subscription management for telecom and other digital services industries creating opportunities beyond connectivity. Tecnotree also provides Fintech and B2B2X multi-experience digital marketplace to its subscriber base through the Tecnotree Moments platform to empower digitally connected communities across gaming, health, education, OTT, and other vertical ecosystems. Tecnotree is listed on the Helsinki Nasdaq (TEM1V). For more information, please visit our website www.tecnotree.com.