TextMagic AS 2025 12 months consolidated unaudited interim report

The year 2025 in the TextMagic Group was characterised by several strategic decisions aimed at improving performance and operational efficiency in future periods. During the year, structural changes were implemented, including the sale of one business line and the initiation of the liquidation of a subsidiary, as well as the optimisation of development activities and the cost base.

In 2025, the TextMagic Group generated revenue of €13,549 thousand, representing a 7% decrease compared to 2024 (2024: €14,533 thousand). The decline in revenue was significantly affected by the unfavourable exchange rates of the US dollar and the British pound. If exchange rates had remained at the 2024 level, revenue in 2025 would have totalled €14,015 thousand, representing a decrease of 4%.

The Group recorded an operating loss of €611 thousand (2024: operating profit of €1,844 thousand). The loss was mainly due to the increase in depreciation and amortization expense and asset impairment of €1,418 thousand to €5,513 thousand (2024: €4,095 thousand), which had no cash impact during the reporting period.

Management primarily assesses the Group’s performance based on EBITDA and the ability to generate operating cash flow. EBITDA amounted to €4,902 thousand (2024: €5,939 thousand), with an EBITDA margin of 36% (2024: 41%).

Cash flow from operating activities from continuing operations amounted to €4,085 thousand (2024: €5,761 thousand), confirming that the TextMagic Group’s business continues to generate strong cash flows, enabling both investments and distributions to investors.

Group unaudited key figures of 2025

Edicy OÜ, which operates the Voog website and e-commerce platform as well as the Edicy campaign page creation tool, was sold in September 2025 and is presented in this report as a discontinued operation.

In November, management decided to close the operations of the Romanian subsidiary TM Marketing Ops SRL, which operated as the Group’s marketing unit. Going forward, the Group’s marketing activities will be carried out from the Estonian headquarters. The decision aimed to reduce the administrative and operational costs of a separate legal entity and to improve the efficiency and effectiveness of marketing activities.

During 2025, both the development and marketing teams were reduced. As at 31 December 2025, the Textmagic team consisted of 43 people (31 December 2024: 79). A substantial part of the headcount reduction took place at the end of the year; therefore, the full impact of personnel cost savings will materialise in the following period.

Key objectives of the Group for 2026

In 2026, the priority is to improve cash flow and increase profitability, building on the existing product value proposition and focusing on revenue growth and cost efficiency.

In 2026, a key focus is the transformation of the Textmagic platform’s marketing strategy and its consistent execution. Marketing messages and platform positioning will be changed and refreshed, placing stronger emphasis on operational messaging and permission-based business communication. The core value drivers are time savings, workflow efficiency, and ensuring regulatory compliance. The objective is to more clearly address priority customer segments, improve marketing performance, and strengthen the platform’s visibility and competitiveness. Improving user experience and applying a data-driven decision-making approach will play an important role in increasing the effectiveness of marketing activities and supporting customer satisfaction.

TextMagic AS’s consolidated unaudited interim report for the 12 months of 2025 is attached to the release in PDF format.

 Additional information:
        Getter Grünmann
         TextMagic AS, CFO
         investor@textmagic.biz
         https://investor.textmagic.com/

Attachments

• TextMagic AS_2025. aasta 12 kuu auditeerimata konsolideeritud vahearuanne
• TextMagic AS_2025 12 months consolidated unaudited interim report (Translation of the Estonian original)