cBrain® advances global growth strategy, maintaining long-term focus

Core Viewpoint - cBrain is advancing its global growth strategy in the Commercial Off-The-Shelf (COTS) software for government sector, focusing on long-term leadership and market expansion [1][2][59] Financial Performance - Revenue for the first half of 2025 is DKK 132 million, down 5% from DKK 139 million in the same period of 2024 [4] - Software revenue decreased by 10% to DKK 100 million, primarily due to a 58% decline in one-time software licenses [5] - Services revenue increased by 15% to DKK 32 million, while recurring revenue from subscriptions grew by 24%, now representing 61% of total revenue [5][6] - The company maintains its full-year guidance, expecting revenue growth of 10-15% with an EBT margin of 18-23% [9] Strategic Focus - cBrain aims to lead the COTS software for government industry, refining its strategy to balance large account customers with niche market leadership [2] - The F2 platform is designed to be a fully integrated solution for government needs, allowing easy configuration without modifying core software [3] Market Opportunities - The global COTS for government market is seen as significant, with cBrain focusing on long-term growth despite short-term performance impacts [12] - The company is establishing a strong reference position in the Paperless Ministry market, leveraging Denmark's top ranking in the UN E-Government Survey [14] International Expansion - cBrain is actively pursuing international projects, with notable initiatives in Kenya and plans to expand into the U.S., Germany, UAE, and Africa [9][17][20] - The collaboration with the UNDP aims to accelerate digital transformation in Africa, aligning with the UNDP Digital Offer for Africa strategy [50][52] Technological Advancements - The F2 platform supports digital sovereignty by allowing governments to use multiple editing tools while ensuring data integrity [24][26] - cBrain is integrating AI into the F2 platform to enhance government operations, ensuring security and data sovereignty [56][58] Recent Developments - cBrain has successfully implemented the F2 Paperless Ministry solution in various Danish municipalities, demonstrating rapid deployment capabilities [41][43] - The company is also focusing on environmental permitting as a key vertical, aligning with new U.S. federal standards for digital permitting [31][33]