Sinch Exceeds Profit Expectations Despite Revenue Decline in Q2 2025
Sinch reports higher-than-expected Q2 profits but reveals a revenue drop.
Key Points
- • Adjusted EBITDA reached 869 million SEK, beating expectations.
- • Net revenue declined to 6.6 billion SEK from 7.0 billion SEK a year prior.
- • CEO underscores need for consistent revenue growth amid economic uncertainty.
- • Pang emphasizes cautious management of costs going forward.
Sinch, the Swedish cloud communications company, reported its financial results for the second quarter of 2025, showcasing a notable achievement in profitability despite a dip in revenue. The company posted an adjusted EBITDA of 869 million SEK, surpassing market expectations of 814 million SEK, and slightly above the previous year's figure of 867 million SEK. However, net revenue saw a decrease, falling to 6.6 billion SEK from 7.0 billion SEK in the same quarter last year, which was more significant than the anticipated 6.7 billion SEK.
CEO Laurinda Pang commented on these results by highlighting that while the improved gross margin signals a positive trend, a consistent revenue increase remains essential for sustained profitability. "It's crucial that we find robust revenue growth to support our profit increases moving forward," Pang stated. Moreover, she acknowledged the uncertain macroeconomic conditions and emphasized a careful approach to future forecasts and stringent cost management to navigate potential challenges in the coming quarters.