TextMagic AS

08/12/2025 | Press release | Distributed by Public on 08/11/2025 23:03

TextMagic AS 2025 6 months consolidated unaudited interim report

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TextMagic AS 2025 6 months consolidated unaudited interim report

In the first half of 2025, revenue amounted to €7,115 thousand (H1 2024: €7,809 thousand). The decline was mainly due to a more competitive pricing strategy that was implemented on the Textmagic platform. EBITDA was €2,581 thousand (H1 2024: €3,149 thousand), and the operating loss totaled to €123 thousand (H1 2024: operating profit of €1,097 thousand). Profitability was negatively affected by an increase in amortization expenses of €652 thousand, resulting from the higher volume of development activities in previous periods with the goal of improving the value proposition.

Although sales revenue has declined, we have seen growth in usage volumes since March on the Textmagic platform - in the second quarter of 2025, 7% more SMS messages were sent than in the same period last year. Acquiring new customers in the US market has become more difficult due to regulations, while in the UK and Australia we are seeing a growth trend in new users.

Since 2024, Textmagic platform's development has focused on expanding the product's value proposition by adding features and communicaton channels that support business interactions. In the first quarter of 2025, the rapid development pace slowed down, because the team was downsized to optimize development activities and improve cost efficiency.

In the first quarter of 2025, new communication channels were added to the Textmagic platform, including Business Instagram and Facebook Messenger, allowing users to manage a wide range of customer inquiries and information exchanges in a single environment. In June, we launched an email campaign feature to offer our clients a more comprehensive solution for marketing and customer communication in addition to SMS. Email functionality opens up new opportunities to expand the customer base.

Group unaudited key figures

2025 H1 2024 H1
Revenue €7.12 M €7.81 M
EBITDA €2.58 M €3.15 M
Operating profit (loss) -€0.12 M €1.10 M

Operating profit decreased due to a decline in sales revenue and an increase in the amortization of intangible assets. The increase in depreciation was due to higher capitalized development costs in recent years. Labor and operating expenses decreased in the first half of 2025 compared to the same period in 2024. The EBITDA margin was 36% (H1 2024: 40%), confirming that the company's cash flow from operating activities remains strong.

Textmagic SMS platform's sales results

2025 H1 2024 H1 Change
Unaudited revenue (thousand) €6,804 €7,490 -9 %
Volume of SMS messages (thousand pcs) 125,913 127,046 -1 %
Active users* 21,307 23,499 -9 %
Average revenue per user (ARPU, 6 months)** €319 €319 0 %

* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.
**ARPU is calculated by dividing unaudited revenue by the number of active users.

Despite the recovery in usage volumes, revenue has still decreased due to various factors. The main impact comes from offering less expensive plans and free usage options. U.S. regulations remain a significant reason for the decline, as they restrict mass messaging for unregistered marketing campaigns. Additionally, revenue has been affected by currency exchange rates, as well as customers' financial situations and price sensitivity.

TextMagic AS's consolidated unaudited interim report for the 6 months of 2025 is attached to the release in PDF format.

Additional information:
Getter Grünmann
TextMagic AS, CFO
[email protected]
https://investor.textmagic.com/

CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS OF 2025
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousands of euros) 30.06.

2025 		31.12.

2024 		30.06.

2024 		31.12.

2023
Non-current assets
Property, plant and equipment 483 581 102 105
Intangible assets and goodwill 31,941 32,972 32,921 32,854
Total non-current assets 32,424 33,553 33 023 32 959
Current assets
Trade and other receivables 20 22 90 24
Prepayments 184 165 200 231
Financial Investments 0 0 3,500 2,500
Cash and cash equivalents 4,060 3,432 4,229 3,900
Total current assets 4,264 3,619 8,019 6,655
TOTAL ASSETS 36,688 37,172 41,042 39,614
Current Liabilities
Current tax liabilities 215 270 411 232
Trade and other payables 734 913 882 791
Lease liabilities 115 107 0 0
Contract liabilities 1,506 1,669 1,668 1,659
Other provisions 338 384 679 1,117
Total current liabilities 2,908 3,343 3,640 3,799
Long-Term Liabilities
Lease liabilities 250 309 0 0
Total long-term liabilities 250 309 0 0
Total liabilities 3,158 3,652 3,640 3,799
Equity
Share capital 861 850 33,575 850
Share premium 141 141 141 51,242
Reserve capital 85 85 85 85
Voluntary reserve 27,710 27,710 0 0
Other reserve 376 1,235 2,360 2,035
Foreign currency reserve (27) (35) (13) (21)
Retained earnings 4,384 3,534 1,254 (18,376)
Equity attributable to owners of the parent 33,530 33,520 37,402 35,815
Total equity 33,530 33,520 37,402 35,815
TOTAL EQUITY AND LIABILITIES 36,688 37,172 41,042 39,614

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(in thousands of euros) 01.01.2025-

30.06.2025 		01.01.2024-

30.06.2024
Revenue 7,115 7,809
Other income 63 59
Goods, raw materials and services (2,544) (2,396)
Other operating expenses (715) (1,050)
Work performed by the entity and capitalized 1,311 2,083
Employee expenses (2,649) (3,346)
Depreciation, amortization and impairment of non-current assets (2,704) (2,052)
Other expenses 0 (10)
Operating profit (loss) (123) 1,097
Financial Income 38 152
Profit (loss) before tax (85) 1,249
Income tax (8) (4)
Profit (loss) for the period (93) 1,245


Other comprehensive income

Items that are or may be reclassified subsequently to profit or loss
Foreign currency translation differences 8 8
Other comprehensive income for the period, net of tax (85) 1,253
Total comprehensive income for the period (85) 1,253

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousand euros) 01.01.2025 - 30.06.2025 01.01.2024 - 30.06.2024
Cash flows from operating activities
Profit (loss) for the period (93) 1,245
Adjustments for:
Depreciation and amortization 2,704 2,052
Financial Income (38) (152)
Other adjustments 84 169
Total adjustments 2,750 2,069
Changes in trade and other receivables 2 (66)
Changes in contract liabilities (163) 9
Changes in prepayments (18) 34
Changes in trade and other payables (280) (167)
Net cash from operating activities 2,198 3,124


Cash flows from investing activities
Interest received 38 152
Fixed-term deposits 0 (1,000)
Acquisition of property, plant and equipment (4) (30)
Development expenditure (1,557) (1,925)
Net cash used in investing activities (1,523) (2,803)
Cash flows from financing activities
Lease liability principal repayments (66) 0
Contribution to the share capital 11 0
Net cash from financing activities (55) 0
TOTAL CASH FLOWS 620 321
Cash and cash equivalents at the beginning 3,432 3,900
Effect of movements in exchange rates on cash held 8 8
Cash and cash equivalents at the end 4,060 4,229

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(in thousands of euros) Total equity attributable to owners of TextMagic AS
Share Capital Share premium Reserve capital Voluntary reserve Other
reserve 		FX translation reserve Retained earnings Total
equity
Balance at December 31, 2023 850 51,242 85 0 2,035 (21) (18,376) 35,815
Profit (loss) for the period 0 0 0 0 0 0 1,245 1,254
Other comprehensive income 0 0 0 0 0 8 0 8
Coverage of losses 0 (18,376) 0 0 0 0 18,376 0
Other changes in equity 32,725 (32,725) 0 0 325 0 9 334
Balance at June 30, 2024 33,575 141 85 0 2,360 (13) 1,254 37,402
Profit (loss) for the period 0 0 0 0 0 0 808 808
Other comprehensive income 0 0 0 0 0 (22) 0 (22)
Transactions with shareholders (5,015) 0 0 0 0 0 0 (5,015)
Other changes in equity (27,710) 0 0 27,710 (1,125) 0 1,472 347
Balance at December 31, 2024 850 141 85 27,710 1,235 (35) 3,534 33,520
Profit (loss) for the period 0 0 0 0 0 0 (93) (93)
Other comprehensive income 0 0 0 0 0 8 0 8
Transactions with shareholders 11 0 0 0 0 0 0 11
Other changes in equity 0 0 0 0 (859) 0 943 84
Balance at June 30, 2025 861 141 85 27,710 376 (27) 4,384 33,530

Attachments

  • TextMagic AS_2025. aasta 6 kuu auditeerimata konsolideeritud vahearuanne
  • TextMagic AS_2025 6months consolidated unaudited interim report (Translation of the Estonian original)

TextMagic AS_2025. aasta 6 kuu auditeerimata konsolideeritud vahearuanne.pdf https://attachment.news.eu.nasdaq.com/a71a7ed78e66830801ffea594eee36ab1
TextMagic AS_2025 6months consolidated unaudited interim report Translation of the Estonian original.pdf https://attachment.news.eu.nasdaq.com/a4b7cac86a1ceb7cc8a37c16d52fc62ab
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TextMagic AS published this content on August 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 12, 2025 at 05:03 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]