WOOD Flash – AROBS Transilvania Software: 2Q25 – trending up, despite continuing headwind from automotive vertical
On 27 August, AROBS reported 2Q25 net profit of RON 3.8m (+56% yoy), on revenues of RON 95.7m (-5% yoy) and EBITDA of RON 14.0m (+16% yoy). On the top line, the numbers underline both: 1) the scale of the contraction of AROBS’ automotive vertical; as well as 2) the growing size of the contribution from the (non-automotive focused) companies acquired since 2021. The latter accounted for 40% of total sales in 1H25, vs. 35% in 1H24; however, in software services, they account for 57% of the segment sales, vs. 41% just one year ago. The 2Q25 gross margin expanded by 282bps yoy, to 28.9%, and the EBITDA margin by 269bps, to 14.6%. In our view, the headcount reduction implemented in 2H24 was clearly supportive of earnings. Management is maintaining its FY25E budget for now, and will reassess it in 3Q25E, with potential revisions, if the FX trends (especially the weak USD) persist.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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