Vusion

H1 2025 adjusted sales were EUR 649 million, up 51% year over year, with U.S. adjusted sales growth of 134%. VAS revenue was EUR 91 million versus EUR 44 million in H1 2024, and order entries were up 22% in H1. Adjusted variable plus margin reached EUR 200 million, up 66%, while adjusted EBITDA grew 84% and the adjusted EBITDA margin increased by 3 points to 16.7%. Free cash flow was EUR 192 million in H1, with a restated free cash flow of EUR 58 million after removing customer down payments and customer-funded manufacturing lines. Net cash improved by EUR 120 million to EUR 513 million above financial debt at June-end. CapEx was EUR 98.5 million in H1, including EUR 76 million funded by customers and EUR 22 million funded by the group. For the full year, management raised revenue guidance to around EUR 1.5 billion from EUR 1.4 billion previously, raised adjusted EBITDA margin guidance to up 200 to 300 bps from 100 to 200 bps previously, expects VAS revenue growth to exceed the initial 80% target, and expects positive free cash flow.

Thierry Gadou framed the quarter as an excellent first half ahead of guidance, emphasizing that the business model is producing both growth and profitability. He highlighted strong visibility from backlog and pipeline, which led management to raise full-year revenue and margin targets and to express confidence in growth next year as well. His tone was constructive and confident, while stressing that the company remains focused on its core mission of digitizing physical retail rather than diversifying away from it.

Thierry Lemaître walked through the financial bridge, pointing to 51% adjusted sales growth, EUR 91 million of VAS revenue, and a 66% increase in adjusted variable plus margin to EUR 200 million. He said EBITDA margin reached 16.7% in H1, helped by mix improvement and a slight OpEx ratio decline, and noted adjusted financial income of EUR 6.3 million, after EUR 2.5 million of exchange gains and net noncash IFRS impacts of EUR 20 million. On cash, he cited EUR 192 million of free cash flow, EUR 98.5 million of CapEx, EUR 22 million of group-funded CapEx, and EUR 513 million of net cash above debt, and said operating free cash flow should keep growing while down payments are consumed.

Analysts pressed on what is driving the higher second-half margin and revenue guidance, with management saying the improvement comes mainly from VAS/ESL mix and overall profitability gains from scale and cost optimization, with a smaller OpEx benefit. On Walmart, management said the program is progressing well, more than 1,000 stores are already installed, and the four production lines are fully operational and dedicated to Walmart; they also confirmed the IFRS weighted-average-price impact should reverse in H2 2025. In Europe, management acknowledged macro headwinds but said order entries have already grown and the pipeline is healthy, with momentum coming from multiple regions and renewals. They also denied any current plan for a U.S. dual listing.