EVS reported QQ1 2025 revenue of EUR 45.89 million, down 6.42% year over year, with a resilient gross margin of 72.56% (EUR 33.30 million) and an EBITDA margin of 23.1%, yielding an EBITDA of EUR 10.60 million and operating income of EUR 7.39 million (operating margin 16.09%). Net income was EUR 6.64 million, or EUR 0.49 per basic share (EUR 0.47 diluted), reflecting a favorable tax rate and disciplined cost management amidst a softer top line. The quarter exhibited a substantial sequential revenue decline of 54.07% (QoQ), consistent with seasonality and timing of larger projects within the broadcast cycle. Management continued to invest in R&D (EUR 10.99 million) to sustain competitive differentiation in software-enabled workflows and cloud-based services, supporting longer-term monetization of IP-enabled solutions.
Cash flow remained challenged on a near-term basis, with net cash provided by operating activities of EUR -1.53 million and free cash flow of EUR -2.07 million, driven largely by working capital movements (change in working capital EUR -10.94 million; accounts receivable -EUR 6.76 million; other working capital changes -EUR 4.45 million). The company maintains a strong balance sheet, reporting EUR 65.23 million in cash and equivalents and a net cash position of EUR 52.84 million after EUR 12.39 million of gross debt. Shareholder-friendly capital allocation continued, highlighted by EUR 2.85 million of common stock repurchases and EUR 4.01 million in dividends during the period. Overall, EVS remains a high-margin, software-enabled hardware provider with substantial liquidity, well-positioned to weather near-term cyclicality while monitoring pipeline activity and calendar-driven demand in the broadcast market.