Talkpool Q2 Interim Report Apr-Jun 2025

CHUR, Switzerland, Aug. 22, 2025 /PRNewswire/ -- In the period April to June of 2025, Talkpool accellerated growth to 14.1% and improved operational cashflow, but the profit margins were reduced due to higher costs.

The quarter in brief

APRIL – JUNE 2025

• Net sales of EUR 4 206 149, an increase of 14.1 % (compared to EUR 3 685 468 in Q2 2024)
• EBITDA of EUR 336 650 (371 498) and EBITDA margin of 8.0 % (10.1 %)
• EBIT of EUR 292 563 (327 665) and EBIT margin of 7.0 % (8.9 %)
• Net Earnings After Tax of EUR 164 193 (150 292) and net EAT margin of 3.9 % (4.1 %)

JANUARY – JUNE 2025

• Net sales of EUR 8 433 010, an increase of 10.1 % (compared to EUR 7 659 197 in H1 2024)
• EBITDA of EUR 958 313 (805 219) and EBITDA margin of 11.4% (10.5 %)
• EBIT of EUR 875 695 (717 864) and EBIT margin of 10.4 % (9.4 %)
• Net Earnings After Tax of EUR 506 798 (315 983) and net EAT margin of 6.0 % (4.1 %)

APRIL – JUNE KEY DEVELOPMENTS

• Growth was surprisingly strong at 14.1% year-on-year despite a weak US$. The transition from last year's "Reduce to the MAX" efficiency program to a new phase of controlled growth has gone off to a good start
• Impressive Operational Cashflow of EUR 422 thousand in Q2, partly explained by the unusually large amount of invoiced services at the end of the first quarter 2025
• New targets and vision for year 2030 were communicated:         
• 17% annual growth, 14% EBITDA, zero net debt, cashflow generation
• Growth of existing revenue streams combined with new technology revenues
• The business in Pakistan signed major contracts, and started to ramp up operations
• The US business re-started with a small network deployment contract
• An extraordinary audit was initiated, delaying the publication of the annual report
• Sales activities ramped up in all markets, resulting in business opportunities and several new agreements – but also resulting in increased costs that temporarily lead to lower margins
• The first test run of Talkpool's share options scheme was successful in the money. The share price increased from EUR 0.45 in March 2024 to EUR 1.25 in June 2025. This is good news for shareholders and key staff alike as the share options scheme continues with three additional phases until 2031.

This is Talkpool

Talkpool works behind the scenes to plan, build and improve large communication networks. The company partners with Original Equipment Manufacturers to distribute, integrate and maintain technology that enhances telecommunication infrastructure. Competence includes planning, implementation, project management, optimization and maintenance of fixed and mobile telecom networks. After a turnaround period that has taken several years, the business is accelerating growth in 2025.

Talkpool has global geographical reach and experience, but it has reduced its geographical focus to three hubs:

• Europe: business in Germany, Headquarters in Switzerland and a Swedish legacy business
• Americas: business in the Caribbean and regional hub in Miami, USA
• Asia: outsourcing hub in Pakistan and small consultancy in Saudi Arabia

Management Comments

The second quarter (Q2 2025) was marked by a substantial increase in market activities. Attendance in German trade shows resulted in over 50 personal client contacts and initial negotiations with several large prospects. The American business generated a long list of new business opportunities, and we entered negotiations and signed first contracts. The Pakistani business has been very successful in negotiating new agreements. The Pakistani operation has made large investments in tools and staff in May and June. A gradual increase of revenues is expected for the Pakistani business during the second half of 2025.

After years of streamlining the business and carrying out efficiency-enhancing measures such as divestments as well as general cost-cutting, Talkpool entered a growth phase in 2025. Growth increased from 6.4% in Q1 to 14.7% in Q2 (year-on-year vs. same periods in 2024) despite challenging FX and global trends. The growth rate is expected to continue increasing in 2025 and 2026.

The US$ lost 11% against the EUR and the PKR (Pakistani Rupee) lost 14% against the EUR from the 1^st of January to the end of June 2025. These currency devaluations had a major negative impact on Talkpool's growth rate as approximately 70% of total revenues are received in these US$-centric currencies.

In Q2 Talkpool invested in network tools, software, laptops, vehicles, hirings of new staff, trainings and a new office in the Dominican Republic. These growth initiatives are generating additional costs that temporarily reduce profit margins. Costs of Sales increased by approximately EUR 200 000 in Q2 2025 (compared to Q1 2025) due to operational ramp-up with investments and hirings. This had a temporary impact on the Gross Margin in Q2 2025 and is expected to continue affecting profit margins for the rest of the year. Costs for Sales, General and Administration also increased during Q2 2025 and are expected to continue increasing. These costs are temporarily reducing operational and net margins. After an initial period of reduced profits, the margins are expected to resurge to reach the 14% EBITDA target while the company grows at approximately 17% per year.

The parent company Talkpool AG underwent an extraordinary audit from April to August 2025. To compensate for a reduction in valuation of the Pakistani asset to EUR 1.7 million (based on a DCF-calculation), the valuation of the German asset was increased to approximately EUR 2.1 million. An independent valuation by BDO put the actual market value of Talkpool's German company to EUR 20.5 million. This extraordinary audit did not have any impact on the consolidated Group.

Talkpool's profit margins decreased in Q2 2025 after a long stable period from year 2022 until Q1 2025. The margin pressure is mainly due to additional costs for business development, sales and ramp-up of operational activities. Profit margins are expected to increase after an interim period of lower margins. The 14% EBITDA target for 2030 can be compared with 10.8% EBITDA in 2024 and 11.4% in the first half of 2025.

The TALK share price (ISIN CH0322161768) rose from SEK 7.94 to SEK 14.50 on Nasdaq First North Stockholm. Talkpool made three investor relations appearances in Q2 2025 after a long time of no investor relations activities.

"VISION 2030" – A STRATEGIC ROADMAP FOR ACCELERATED GROWTH

Vision 2030 is a forward-looking growth strategy aimed at propelling the company into its next phase of accelerated, sustainable growth. Talkpool has entered a period of change in the following areas:

• Business model transformation
• Expansion of service offerings
• Integration of cutting-edge technologies
• Strategic positioning in high-growth telecom segments

With a strengthened balance sheet, streamlined operations, and a clear strategic direction, Talkpool is well-positioned to capitalize on next-generation telecommunications opportunities, driving long-term value for shareholders and stakeholders alike. The growth is expected to be derived from the following revenue channels:

• Organic Growth: Planned acceleration from 2025 through 2030
• Strategic M&A: Selective acquisitions and potential divestments
• Market Expansion: Penetration into high-growth telecommunications segments
• Service Portfolio Enhancement: Introduction of higher-margin technology-enabled services

FINANCIAL TARGETS FOR 2030

• Revenue: EUR 40 million, representing a CAGR of approximately 16.8% from EUR 15.76 million in 2024, driven by expansion in existing business and new remote services fueled by increased use of technology tools
• EBITDA Margin: 14% of revenues (compared to 11% Earnings Before Interest, Tax, Depreciation and Amortization in fiscal year 2024)
• Operational Cash Flow (OCF): Continued focus on positive cash flow generation (9.1% OCF in 2024)
• Capital Structure: Zero net debt, followed by strategic cash reserve accumulation

SMART GROWTH

Smart growth does not only refer to developing smart technology that enables Talkpool to more efficiently provide services to its clients, but also to a step-by-step approach to growth. Talkpool is not starting growth initiatives in all markets at the same time. Markets are positioned for phased growth, starting with Asia followed by America:

1. The Asia region based in Pakistan is expected to grow fast in the second half of 2025 following a boost of contracts and new orders. In addition to growing revenues, and strengthening sales efforts, the hub in Pakistan has come the furthest in developing and trialing new technologies.
2. The Americas region is expected to increase growth in the second half of 2025 as negotiations with prospects, clients and partners convert into contracts. This market includes USA and the northern part of Latin America. A new entity in the Dominican Republic may be established to meet upcoming orders from the Caribbean region. In addition to telecom network services, clients are interested in (build & operate) services of infrastructure such as solar parks.
3. Europe is the last market to start growth initiatives. A new initiative to drive growth in Germany has been planned from September 2025, but we don't expect any growth in Europe this year. Topline growth in Germany is set to accelerate in 2026. Talkpool intends to continuously increase its focus on northern Europe. As published on 17 June 2025, Talkpool has launched a new Swedish subsidiary initiative to deliver advanced communication solutions for the defense sector in Sweden.

IMPORTANT EVENTS AFTER THE 1ST OF JULY 2025

There have been no major events after the reporting period.

In August 2025, the management decided to launch a search-and-grow initiative for the next generation of managers. This management development program spans the areas of sales, finance, operations and general business. Selected staff in Talkpool's markets will be supported and monitored with the purpose of step-by-step strengthening the management's performance over the coming years.

This report contains insider information that Talkpool AG is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 08:30 am Central European Time on Friday the 22^nd of August 2025.

CONTACT:

[email protected] +41 81 250 20 20

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/talkpool-ag/r/talkpool-q2-interim-report-apr-jun-2025,c4221666

The following files are available for download: