2.7 Financial affairs

Key figures

• 1Defined as operating profit expressed as a percentage of revenue.
• 2ROIC represents operating profit divided by invested capital (fixed assets + net working capital).

Revenue

Revenue for 2025 amounted to €279.8 million, which was 11% ahead of 2024 (€251.6 million). Revenue in our key markets increased by 18%.

All key markets showed revenue growth. Healthcare saw continued high demand for its solutions. Livestock recovered well from slow market conditions in 2024. Retail scaled its RFID solutions, notably in Europe and the US. Security saw robust growth in demand for its access control solutions.

Recurring revenue rose by 11% to €111.5 million (in 2024: €100.2 million), comprising 40% of revenue (in 2024: 40% of revenue). This growth was supported by improved market conditions and a relevant offering in all key markets.

Added value was up from €179.9 million in 2024 (71% of revenue) to €204.7 million in 2025 (73% of revenue, an increase of 170 basis points). This was driven by higher revenue, reflecting our focus on value-adding solutions. Added value per FTE increased from €181 thousand per FTE in 2024 to €201 thousand per FTE in 2025. As we continue transitioning to SaaS business models, this metric may decline in the midterm, reflecting the longer value realization timeline inherent in the financial model.

Operating costs

Total operating costs grew by 11%, from €156.0 million in 2024 to €173.0 million in 2025.

This resulted largely from an increase in personnel costs from €114.8 million in 2024 to €127.9 million in 2025. In line with our long-term objectives, we invested in people to support our Create & Scale strategy in our key markets. The number of FTEs increased from 999 at the end of 2024 to 1,032 at the end of 2025. In addition, overall personnel costs per FTE have increased by around 9%. This stems from annual wage increases under collective agreements, as well as annual appraisals and role progression. Additionally, there was an increase in both employee settlements and profit sharing.

Other operating costs went up from €30.5 million in 2024 to €32.8 million in 2025, mainly as a result of decreased capitalization of development costs. Marketing and sales costs were broadly in line with 2024.

Foreign exchange differences amounted to a loss of €0.4 million in 2025, compared to a gain of €0.1 million in 2024.

Depreciation increased from €9.9 million in 2024 to €10.2 million in 2025. Amortization amounted to €1.6 million (in 2024: €0.6 million), driven primarily by the start of amortization on MediKIT. Additionally, we recognized an impairment of €0.6 million, up from 2024 (€0.3 million), due to the write-down of legacy technology used in internal administrative processes.

Investments in research and development totaled €55.8 million, representing 20% of revenue, whereby €1.5 million was capitalized (€50.2 million in 2024, i.e., 20% of revenue, with €3.4 million capitalized). We continue to invest in our capability in digital twin solutions.

Operating profit

Operating profit (EBIT) for 2025 came in at €31.7 million, compared to €23.9 million in 2024. The operating margin, i.e., the operating profit expressed as a percentage of revenue, amounted to 11.3% in 2025 (in 2024: 9.5%). This growth of 180 basis points reflects the increase in added value margin.

Financing costs

Net financing costs decreased to €0.6 million in 2025 (in 2024: €0.9 million) as a result of a flexible refinancing arrangement with a more optimized cost structure.

Taxation

Taxation over 2025 totaled €6.5 million (in 2024: €4.4 million). The effective tax rate increased to 21.0% (in 2024: 19.0%), mainly reflecting higher non-deductible expenses, lower deferred taxation, and a prior-year tax adjustment, partly offset by increased benefits from tax incentive schemes.

Profit for the financial year

Profit posted for the 2025 financial year came in at €24.6 million, compared to €18.5 million posted in 2024.

Earnings per share and dividend

Earnings per share increased from €2.82 in 2024 to €3.72 in 2025. The average number of outstanding shares in 2025 was 6,605,616 (in 2024: 6,581,074). This increase is the result of the delivery of shares held by the company itself to cover employee participation plans.

A dividend of €3.70 will be paid for 2025 (in 2024: €3.20).

Financial position

The balance sheet total decreased from €137.4 million as of 31 December 2024 to €136.4 million as of 31 December 2025.

Trade and other receivables increased in line with revenue, while days sales outstanding remained flat at 6.2 weeks compared to 2024.

Inventories continued to decrease, from €32.0 million in 2024 to €30.0 million in 2025, as actions initiated to reduce inventory in 2024 continued to show results in 2025.

Overall liabilities decreased from €53.7 million in 2024 to €46.9 million in 2025. The financing agreement with the bank for the standby roll-over loan, set to expire on 1 April 2026, was repaid in the financial year and a multi-purpose credit facility has been established. This was partly offset by an increase in trade and other payables (from €30.5 million in 2024 to €32.3 million in 2025) and an increase in our lease liability (from €1.7 million in 2024 to €4.4 million in 2025). This increase reflects the leasing of new premises in the US for a five-year term and the leasing of vehicles in the Netherlands as part of the electrification of our fleet.

The net debt position is now negative at -€3.4 million as of 31 December 2025, compared to €9.6 million as of 31 December 2024. Cash and cash equivalents decreased from €4.4 million as of 31 December 2024 to €3.4 million as of 31 December 2025, with repayment of the borrowings being largely compensated by the improved operational cash flow.

Net debt-to-EBITDA stood at -0.1 as of 31 December 2025 (0.3 as of 31 December 2024). Solvency stood at 66% as of 31 December 2025 (61% as of 31 December 2024).

There are no drawings on the credit facilities as of 31 December 2025 (€14 million as of 31 December 2024).

Cash flow

Net working capital as of 31 December 2025 amounted to €26.5 million, lower than in 2024 (€35.0 million). This was driven by reduced inventory levels and increases in employee-related payables, tax and lease liability. The increases in trade and other receivables and trade and other payables are roughly equivalent. Operating cash flow amounted to €44.5 million in 2025, against €28.9 million in 2024.

Return on invested capital

Return on invested capital (ROIC) increased to 37% in 2025 (in 2024: 26%), driven by higher operating profit and lower net working capital.