Facephi Reports Solid 1H25 Results, Expects Strong Acceleration in 2H25, and Provides 2025–2026 Financial Guidance

Core Viewpoint - Facephi Biometría, a leader in AI/ML-powered digital identity verification, reported solid financial results for the first half of 2025 and provided optimistic guidance for 2025 and 2026, highlighting strong revenue growth and positive free cash flow for the first time in its history [3][9]. Financial Performance 1H25 - Total contract value increased to €65.4 million, reflecting a 50% growth compared to 1H24 [4]. - Net revenue rose to €12.6 million, a 7.9% increase year-over-year, with an 11.3% increase when excluding foreign exchange changes [4]. - Normalized EBITDA improved significantly to -€0.2 million from -€2.7 million in 1H24, indicating a positive trend in operational efficiency [4][6]. - Free cash flow for the last 12 months was -€4.4 million, an improvement of €4.4 million compared to the previous year, with a positive cash flow of €0.01 million when excluding foreign exchange changes [4][6]. Financial Guidance 2025-2026 - Projected net revenue for FY 2025 is €36.4 million, representing a 26.4% CAGR from FY 2024 to FY 2026 [5]. - Expected normalized EBITDA for FY 2026 is €11.0 million, reflecting a substantial growth of 231.7% CAGR from FY 2024 to FY 2026 [5]. - Free cash flow is anticipated to turn positive in FY 2026, reaching €4.3 million, a significant increase from -€1.0 million in FY 2025 [5][7]. Strategic Developments - The company is focusing on geographic expansion, now serving clients in over 30 countries, with notable growth in the EMEA region, which increased its revenue contribution from 1.3% in FY 2024 to 4.6% [13]. - Sector diversification is progressing, with insurance, pensions, and fintech now accounting for 5.1% of revenues, up from 3.0% [13]. - Facephi has evolved its product offerings to provide a comprehensive Identity & Anti-Fraud platform, enhancing its market position and service capabilities [13]. Outlook - The company anticipates strong acceleration in the second half of 2025 and into 2026, supported by robust revenue, EBITDA, and free cash flow generation [9].