TextMagic AS 2025 6 months consolidated unaudited interim report

In the first half of 2025, revenue amounted to €7,115 thousand (H1 2024: €7,809 thousand). The decline was mainly due to a more competitive pricing strategy that was implemented on the Textmagic platform. EBITDA was €2,581 thousand (H1 2024: €3,149 thousand), and the operating loss totaled to €123 thousand (H1 2024: operating profit of €1,097 thousand). Profitability was negatively affected by an increase in amortization expenses of €652 thousand, resulting from the higher volume of development activities in previous periods with the goal of improving the value proposition.

Although sales revenue has declined, we have seen growth in usage volumes since March on the Textmagic platform - in the second quarter of 2025, 7% more SMS messages were sent than in the same period last year. Acquiring new customers in the US market has become more difficult due to regulations, while in the UK and Australia we are seeing a growth trend in new users.

Since 2024, Textmagic platform's development has focused on expanding the product's value proposition by adding features and communicaton channels that support business interactions. In the first quarter of 2025, the rapid development pace slowed down, because the team was downsized to optimize development activities and improve cost efficiency.

In the first quarter of 2025, new communication channels were added to the Textmagic platform, including Business Instagram and Facebook Messenger, allowing users to manage a wide range of customer inquiries and information exchanges in a single environment. In June, we launched an email campaign feature to offer our clients a more comprehensive solution for marketing and customer communication in addition to SMS. Email functionality opens up new opportunities to expand the customer base.

Group unaudited key figures

 

2025 H1

2024 H1

Revenue

€7.12 M

€7.81 M

EBITDA

€2.58 M

€3.15 M

Operating profit (loss)

-€0.12 M

€1.10 M

Operating profit decreased due to a decline in sales revenue and an increase in the amortization of intangible assets. The increase in depreciation was due to higher capitalized development costs in recent years. Labor and operating expenses decreased in the first half of 2025 compared to the same period in 2024. The EBITDA margin was 36% (H1 2024: 40%), confirming that the company's cash flow from operating activities remains strong.

Textmagic SMS platform's sales results

 

2025 H1

2024 H1

Change

Unaudited revenue (thousand)

€6,804

€7,490

-9 %

Volume of SMS messages (thousand pcs)

125,913

127,046

-1 %

Active users*

21,307

23,499

-9 %

Average revenue per user (ARPU, 6 months)**

€319

€319

0 %

* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period. **ARPU is calculated by dividing unaudited revenue by the number of active users.

Despite the recovery in usage volumes, revenue has still decreased due to various factors. The main impact comes from offering less expensive plans and free usage options. U.S. regulations remain a significant reason for the decline, as they restrict mass messaging for unregistered marketing campaigns. Additionally, revenue has been affected by currency exchange rates, as well as customers' financial situations and price sensitivity.

TextMagic AS's consolidated unaudited interim report for the 6 months of 2025 is attached to the release in PDF format.

 Additional information:         Getter Grünmann          TextMagic AS, CFO          https://investor.textmagic.com/

CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS OF 2025CONSOLIDATED STATEMENT OF FINANCIAL POSITION 

(in thousands of euros)

30.06. 2025

31.12. 2024

30.06. 2024

31.12. 2023

Non-current assets

 

 

 

 

Property, plant and equipment

483

581

102

105

Intangible assets and goodwill

31,941

32,972

32,921

32,854

Total non-current assets

32,424

33,553

33 023

32 959

Current assets

 

 

 

 

Trade and other receivables

20

22

90

24

Prepayments

184

165

200

231

Financial Investments

0

0

3,500

2,500

Cash and cash equivalents

4,060

3,432

4,229

3,900

Total current assets

4,264

3,619

8,019

6,655

TOTAL ASSETS

36,688

37,172

41,042

39,614

Current Liabilities

 

 

 

 

Current tax liabilities

215

270

411

232

Trade and other payables

734

913

882

791

Lease liabilities

115

107

0

0

Contract liabilities

1,506

1,669

1,668

1,659

Other provisions

338

384

679

1,117

Total current liabilities

2,908

3,343

3,640

3,799

Long-Term Liabilities