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ER - F-Secure Half-year Report 1 January-30 June 2025: Consistent progress offset by FX and Tier 1 ramp-up delays

Company: F-Secure Oyj Date: 2025-07-18 Language: English Register to download
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 F-Secure Half-year Report 1 January-30 June 2025: Consistent progress offset by FX and Tier 1 ramp-up delays

# F-Secure Half-year Report 1 January-30 June 2025: Consistent progress offset by FX and Tier 1 ramp-up delays

F-Secure Corporation | Stock exchange release | 18 July 2025 at 8:00 am EEST

**F-Secure Half-year Report 1 January–30 June 2025: Consistent progress offset by FX and Tier 1 ramp-up delays**

This is a summary of F-Secure Corporation’s January**–**June 2025 Half-year Report. The full report is a PDF file attached to this stock exchange release and available on the company website at [www.investors.f-secure.com](http://www.investors.f-secure.com).

F-Secure Corporation organize a webcast today at 13:00 EEST, details of the event and how to participate can be found at the end of this release.

**Highlights of April–June 2025**

-   Revenue increased by 1.1% to EUR 36.9 million (EUR 36.5 million). Currency neutral growth was 1.9%.
    -   Revenue from Partner channel increased by 2.6% to EUR 30.2 million (EUR 29.4 million).
    -   Revenue from Direct channel decreased by -5.1% to EUR 6.7 million (EUR 7.1 million).
-   Adjusted EBITA was EUR 11.9 million (EUR 13.2 million), 32.2% of revenue (36.1%).
-   Earnings per share (EPS) amounted to EUR 0.03 (EUR 0.03).
-   Cash flow from operating activities before financial items and taxes was EUR 13.8 million (EUR 20.7 million).
-   In June, F-Secure signed and withdrew a EUR 35 million credit facility, marking the first step in refinancing the company’s loan portfolio.
-   On 8 July, F-Secure lowered its outlook for 2025 for revenue and adjusted EBITA.

**Highlights of January–June 2025**

-   Revenue increased by 1.5% to EUR 74.0 million (EUR 72.9 million). Currency neutral growth was 1.2%.
    -   Revenue from Partner channel increased by 2.4% to EUR 60.3 million (EUR 58.8 million).
    -   Revenue from Direct channel decreased by -2.1% to EUR 13.7 million (EUR 14.0 million).
-   Adjusted EBITA was EUR 25.0 million (EUR 25.8 million), 33.8% of revenue (35.5%).
-   Earnings per share (EPS) amounted to EUR 0.06 (EUR 0.06).
-   Cash flow from operating activities before financial items and taxes was EUR 25.8 million (EUR 32.4 million).
-   Net debt amounted to EUR 152.9 million (EUR 166.6 million) and the leverage ratio was 2.9x.

Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented. Figures in this half-year report are unaudited.

**Revised outlook for 2025**

Revised on 8 July 2025:

**Growth:** F-Secure expects low single-digit currency-neutral revenue growth for 2025.  

**Profitability:** The group’s adjusted EBITA margin is expected to be in the range of 32%–35% in 2025 (in 2024: 35.7%).

**Background for the outlook:**

-   F-Secure expects the core consumer cyber security market to grow mid-single digit CAGR mid- to long-term1. F-Secure sees the potential to grow faster than the market, focusing on partner channel and its offering around Embedded security and Scam Protection. The growth may be moderated by uncertainties around consumer sentiment in certain markets and general economic volatility.
-   Partner business and especially Embedded services are expected to drive F-Secure growth during 2025. Growth is expected to accelerate throughout the year as new partners and services gradually start to generate revenue.
-   Direct business revenue development is expected to be negative due to the continued strategy of refraining from paid customer acquisition.
-   Gross margin is expected to be slightly lower than in 2024 (86.2%) due to growth of strategic partners with embedded solutions, as these typically have a lower gross margin level than F-Secure Total business.
-   F-Secure continues to develop its service, operations and production capabilities further to meet Tier 1 partner requirements. These efforts are still reflected in the higher cost base. As business scales we expect to leverage continued service level investments across a wider partner base, leading to positive adjusted EBITA % development over time.
-   Capex level is expected to remain at a similar level to 2024. However, new product development projects related to partner demand can have an impact on the outcome.

1 Industry analyst views such as Gartner and IDC, and F-Secure management estimates.

**Financial targets  

**

F-Secure's medium-term financial targets and dividend policy for the company reflect the company’s growth ambitions and strategic direction. Year 2025 is still a business ramp-up year, after which the journey towards achieving the financial targets is expected to accelerate.

-   **Growth:** High single digit growth (CAGR) with additional significant upside from major Tier 1 deals
-   **Profitability:** Adjusted EBITA margin approaching 40% as revenue reaches EUR 200 million
-   **Dividend Yield:** Around or above 50% of net profit, which can be adjusted as long as leverage is higher than the targeted level
-   **Leverage:** Net debt / adjusted EBITDA ratio below 2.5x, excluding temporary impact from acquisitions

F-Secure Corporation follows the Rule of 40 metric as internal performance measurement and guiding principle, according to which the combined revenue growth rate and profitability margin should be equal to or greater than 40%.

**Financial performance**

| **EUR million** | **4-6/**<br><br>**2025** | **4-6/**<br><br>**2024** | **Change %** | **1-6/**<br><br>**2025** | **1-6/**<br><br>**2024** | **Change %** | **1-12/**<br><br>**2024** |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue | 36.9 | 36.5 | 1.1% | 74.0 | 72.9 | 1.5% | 146.3 |
| Gross Margin | 31.3 | 31.4 | \-0.2% | 63.0 | 62.5 | 0.7% | 126.0 |
| % of revenue | 84.8% | 85.9% |     | 85.1% | 85.8% |     | 86.2% |
| Operating expenses1 | \-19.3 | \-18.1 | 6.8% | \-37.6 | \-36.6 | 2.9% | \-73.3 |
| Sales & Marketing | \-8.7 | \-8.7 | 0.2% | \-16.9 | \-17.2 | \-1.9% | \-33.4 |
| Research & Development | \-6.6 | \-5.7 | 14.8% | \-13.0 | \-11.9 | 9.4% | \-25.4 |
| Administration | \-4.0 | \-3.6 | 10.0% | \-7.7 | \-7.5 | 3.7% | \-14.5 |
| Adjusted EBITA1 | 11.9 | 13.2 | \-9.9% | 25.0 | 25.8 | \-3.3% | 52.2 |
| % of revenue | 32.2% | 36.1% |     | 33.8% | 35.5% |     | 35.7% |
| Items affecting comparability (IAC)2 | 0.0 | 0.1 |     | 0.1 | 0.2 | \-68.2% | \-1.4 |
| EBIT | 8.2 | 10.2 | \-19.3% | 17.6 | 20.2 | \-12.7% | 38.4 |
| % of revenue | 22.3% | 28.0% |     | 23.8% | 27.7% |     | 26.3% |
| Earnings per share (EUR)3 | 0.03 | 0.03 | \-6.4% | 0.06 | 0.06 | 0.0% | 0.12 |
| Earnings per share, adjusted for PPA amortization (EUR)3 | 0.04 | 0.04 | \-4.8% | 0.08 | 0.08 | 0.3% | 0.16 |
| Shareholder's equity per share, EUR |     |     |     | 0.25 | 0.20 |     | 0.27 |
| Operating cash flow | 10.8 | 16.8 | \-36.1% | 20.4 | 24.7 | \-17.3% | 38.8 |
| Cash conversion % | 89.4% | 124.5% |     | 77.4% | 94.5% |     | 80.5% |
| Deferred revenue |     |     |     | 24.7 | 25.9 | \-4.4% | 28.5 |
| Net debt (+) / Net cash (-) |     |     |     | 152.9 | 166.6 | \-8.2% | 163.6 |
| Net debt/Adjusted EBITDA |     |     |     | 2.9 | 3.24 |     | 3.1 |
| Gearing, % |     |     |     | 345.2% | 493.5% |     | 356.0% |
| Equity ratio % |     |     |     | 17.0% | 12.6% |     | 17.4% |
| Personnel at the end of the period |     |     |     | 530 | 519 | 2.1% | 529 |

1.  Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
2.  A reconciliation and breakdown of items affecting comparability is presented at the end of this report.
3.  Based on the average number of shares for the reporting period.
4.  Net debt/Adjusted EBITDA for the last 12 months includes Lookout consumer business unit EBITDA on an illustrative basis as if the acquisition had been made on the first day of the period in question.

**Timo Laaksonen, President and CEO**

We have continued to make meaningful progress in advancing our commercial performance, driving innovation, and enhancing operational excellence. In terms of execution, the adoption of new security services by Tier 1 partners has progressed slower than expected. In addition, the closing of new Tier 1 deals, both with existing and new partners, has been delayed due to factors deriving from partners such as organizational changes, shifting priorities, limited resources, and evolving business cases. The weakening of the US dollar by more than 10 percent during the first half of the year has a substantial impact, resulting in a negative effect of more than EUR 3 million on the full-year revenue based on the current exchange rate compared to the level in the beginning of 2025. F-Secure’s revenue grew by 1.1% in the second quarter, currency neutral growth was 1.9%. Despite these challenges, we maintain a robust pipeline of opportunities and remain optimistic about future growth.

We have made progress especially in securing and expanding deals with Tier 1 partners. We secured a new contract for Embedded Security with a Latin American insurance company, expanded our partnership with TDS Telecom in the US, and expanded our business with Japanese telecom operator Docomo. Our Embedded Security portfolio sales grew by 4.6% during the quarter, showing solid performance. Among our key markets Japan, Sweden and Finland showed significant growth.

F-Secure was named the leading cybersecurity partner for telcos in STL Partners'5 latest report, highlighting our technology, threat intelligence and proven track record. We received the Most Innovative PoC Award at Fiber Connect6 2025 for our joint Proof of Concept and earned a Gold Medal from EcoVadis7, placing us in the top five percent of over 150,000 companies worldwide for sustainability performance. EcoVadis medals serve as a benchmark for trustworthy and transparent sustainability performance.

In May, we hosted our global SPECIES 2025 partnership event in Madrid, focused on networking and sharing best practices. The event was once again remarkable success, attracting a record number of our partners from around the world. We introduced new advancements in scam protection, launched our human-centric research organization under the new name Illuminate, and unveiled Halo, our new benchmark for the best consumer cybersecurity experience, along with a new partner business platform, Horizon.

In May, we took a significant stride in our mission to become the world’s #1 scam protection provider with the launch of a standalone Scam Protection product. It offers consumers greater flexibility and access in the face of rising online scams. We’re making our best-in-class tools more accessible and giving consumers the flexibility to stay safe on their own terms.

As we move forward, we are confident in our strategic direction and the initiatives we have in place. Together, with F-Secure fellows, our partners and shareholders, we will continue to seize opportunities, ensuring that F-Secure remains at the forefront of cybersecurity and innovation.

1.  STL Partners helps telcos, technology, and digital infrastructure companies to innovate, grow and stay ahead of the competition by providing actionable insights and practical guidance on emerging challenges and opportunities, with a focus on innovation and identifying new sources of growth. https://stlpartners.com
2.  [https://fiberbroadband.org/2025/06/04/fiber-broadband-association-awards-connected-home-subscriber-experience-concepts-at-fiber-connect-2025/](https://fiberbroadband.org/2025/06/04/fiber-broadband-association-awards-connected-home-subscriber-experience-concepts-at-fiber-connect-2025/)
3.  Ecovadis is a global standard for resilient, sustainable supply chains. Trusted data, actionable insights, continuous improvement. [https://ecovadis.com/](https://ecovadis.com/)

**Additional information  

**This is a summary of F-Secure Corporation’s January**–**June 2025 Half-year Report. The full report is a PDF file attached to this stock exchange release and available on the company website at [www.investors.f-secure.com](http://www.investors.f-secure.com).

**Financial reporting in 2025  

**In 2025, F-Secure Corporation will publish financial information as follows:

-   Interim Report for January–September 2025 on Tuesday, 28 October 2025

**For additional information, please contact:  

**Chief Financial Officer Sari Somerkallio, tel. +358 40 356 9251, [investor.relations@f-secure.com](mailto:investor.relations@f-secure.com)

**Webcast  

**Everyone interested in F-Secure is welcome to follow the live webcast on the result publication day at 13:00 Helsinki time (EEST). In the webcast, F-Secure’s President and CEO Timo Laaksonen and CFO Sari Somerkallio will present the results and after the presentation there will be time for questions. The event can be followed at [https://fsecure.events.inderes.com/q2-2025/register](https://fsecure.events.inderes.com/q2-2025/register)

Analysts following F-Secure are invited to the presentation at the company headquarters, Tammasaarenkatu 7, Helsinki, Finland.

A recording of the event will be available after the event on the company's website.

**F-Secure in brief  

**F-Secure is Finland headquartered and globally operating consumer cyber security company. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki Ltd.

Read more: [www.f-secure.com](http://www.f-secure.com)