Core Insights - The year 2025 for TextMagic Group was marked by strategic decisions aimed at enhancing performance and operational efficiency, including the sale of a business line and the liquidation of a subsidiary [1] Financial Performance - In 2025, TextMagic Group generated revenue of €13,549 thousand, a 7% decrease from €14,533 thousand in 2024, primarily due to unfavorable exchange rates [2] - The Group recorded an operating loss of €611 thousand in 2025, compared to an operating profit of €1,844 thousand in 2024, largely due to increased depreciation and amortization expenses [3] - EBITDA for 2025 was €4,902 thousand, down from €5,939 thousand in 2024, with an EBITDA margin of 36% compared to 41% in the previous year [4] - Cash flow from operating activities was €4,085 thousand in 2025, a decrease from €5,761 thousand in 2024, indicating continued strong cash generation capabilities [4][5] Structural Changes - The sale of Edicy OÜ, which operated the Voog website and e-commerce platform, was completed in September 2025 and is classified as a discontinued operation [5] - The Romanian subsidiary TM Marketing Ops SRL was closed in November 2025, with marketing activities to be centralized at the Estonian headquarters to reduce costs and improve efficiency [6] Workforce Adjustments - The TextMagic team was reduced to 43 employees by the end of 2025, down from 79 at the end of 2024, with significant reductions occurring late in the year [7] Future Objectives - For 2026, the Group aims to improve cash flow and profitability while focusing on revenue growth and cost efficiency [8] - A key focus for 2026 will be the transformation of the marketing strategy for the TextMagic platform, emphasizing operational messaging and compliance, with an aim to enhance customer satisfaction and marketing effectiveness [9]

Financial Performance - The group's unaudited consolidated revenue decreased in Q4 2025 by 2% year-over-year to €3,525 thousand, compared to €3,598 thousand in Q4 2024 [1] - For the full year 2025, total unaudited consolidated revenues decreased by 7% year-over-year to €13,549 thousand, down from €14,533 thousand in 2024 [2] - If exchange rates had remained the same as in 2024, Q4 2025 revenue would have been €3,786 thousand, reflecting a 5% increase, while total revenue for 2025 would have been €14,015 thousand, indicating a 4% decrease [1][2] User Metrics - In Q4 2025, the volume of SMS messages sent increased by 14% year-over-year, reaching 70,665 thousand pieces, while the number of active users decreased by 5% to 18,876 [3][4] - For the full year 2025, the volume of SMS messages sent was 261,931 thousand pieces, a 5% increase from 249,228 thousand in 2024, but the number of active users declined by 9% to 23,922 [3][4] Average Revenue Per User (ARPU) - The average revenue per user (ARPU) for Q4 2025 was €187, a 3% increase from €182 in Q4 2024 [3] - For the full year 2025, ARPU was €566, up 3% from €549 in 2024 [3] Market Developments - The decline in active users was primarily due to regulatory changes in the United States that restricted unregistered campaigns, while the UK saw an increase in active users during 2025 [5] - Growth in revenue was driven by developments in the UK and Australian markets [4] New Features and Initiatives - In Q4 2025, the Textmagic platform introduced an automation feature for creating automated messaging systems, enhancing customer interaction efficiency [6] - Touchpoint.com was launched as a new platform for creating professional email designs using AI, aimed at broadening the customer base and supporting Textmagic users [7] Operational Measures - To improve cash flow and profitability, operational measures were implemented in Q4 2025, including optimizing development costs and discontinuing operations of the Romanian subsidiary [8]

Core Insights - The company experienced a decline in revenue and profitability in the first half of 2025, primarily due to a competitive pricing strategy and increased amortization expenses [1][5][7] Financial Performance - Revenue for H1 2025 was €7,115 thousand, down from €7,809 thousand in H1 2024, representing a decrease of approximately 8.9% [1][5] - EBITDA decreased to €2,581 thousand in H1 2025 from €3,149 thousand in H1 2024, reflecting a decline of about 18.1% [1][5] - The operating loss for H1 2025 was €123 thousand, compared to an operating profit of €1,097 thousand in H1 2024 [1][5] - The EBITDA margin for H1 2025 was 36%, down from 40% in H1 2024, indicating a decrease in operational efficiency [5] User Engagement and Market Trends - Despite the revenue decline, there was a 7% increase in SMS message volumes sent on the Textmagic platform in Q2 2025 compared to the same period last year [2] - The company faced challenges in acquiring new customers in the US due to regulatory constraints, while experiencing growth in the UK and Australia [2] Product Development and Features - Since 2024, the development focus has been on enhancing the product's value proposition by adding new features and communication channels [3] - In Q1 2025, new communication channels such as Business Instagram and Facebook Messenger were integrated into the Textmagic platform, along with the launch of an email campaign feature in June 2025 [4] Operational Adjustments - The company downsized its development team in early 2025 to optimize activities and improve cost efficiency, which contributed to a slowdown in the pace of development [3] Key Metrics - Active users on the Textmagic SMS platform decreased by 9% to 21,307 in H1 2025 from 23,499 in H1 2024 [6] - The average revenue per user (ARPU) remained stable at €319 over the six-month period [6]