TextMagic AS 2025 6 months consolidated unaudited interim report
In the first half of 2025, revenue amounted to €7,115 thousand (H1 2024: €7,809 thousand). The decline was mainly due to a more competitive pricing strategy that was implemented on the Textmagic platform. EBITDA was €2,581 thousand (H1 2024: €3,149 thousand), and the operating loss totaled to €123 thousand (H1 2024: operating profit of €1,097 thousand). Profitability was negatively affected by an increase in amortization expenses of €652 thousand, resulting from the higher volume of development activities in previous periods with the goal of improving the value proposition.
Although sales revenue has declined, we have seen growth in usage volumes since March on the Textmagic platform – in the second quarter of 2025, 7% more SMS messages were sent than in the same period last year. Acquiring new customers in the US market has become more difficult due to regulations, while in the UK and Australia we are seeing a growth trend in new users.
Since 2024, Textmagic platform’s development has focused on expanding the product’s value proposition by adding features and communicaton channels that support business interactions. In the first quarter of 2025, the rapid development pace slowed down, because the team was downsized to optimize development activities and improve cost efficiency.
In the first quarter of 2025, new communication channels were added to the Textmagic platform, including Business Instagram and Facebook Messenger, allowing users to manage a wide range of customer inquiries and information exchanges in a single environment. In June, we launched an email campaign feature to offer our clients a more comprehensive solution for marketing and customer communication in addition to SMS. Email functionality opens up new opportunities to expand the customer base.
Group unaudited key figures
| 2025 H1 | 2024 H1 | |
| Revenue | €7.12 M | €7.81 M |
| EBITDA | €2.58 M | €3.15 M |
| Operating profit (loss) | -€0.12 M | €1.10 M |
Operating profit decreased due to a decline in sales revenue and an increase in the amortization of intangible assets. The increase in depreciation was due to higher capitalized development costs in recent years. Labor and operating expenses decreased in the first half of 2025 compared to the same period in 2024. The EBITDA margin was 36% (H1 2024: 40%), confirming that the company’s cash flow from operating activities remains strong.
Textmagic SMS platform’s sales results
| 2025 H1 | 2024 H1 | Change | |
| Unaudited revenue (thousand) | €6,804 | €7,490 | -9 % |
| Volume of SMS messages (thousand pcs) | 125,913 | 127,046 | -1 % |
| Active users* | 21,307 | 23,499 | -9 % |
| Average revenue per user (ARPU, 6 months)** | €319 | €319 | 0 % |
* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.
**ARPU is calculated by dividing unaudited revenue by the number of active users.
Despite the recovery in usage volumes, revenue has still decreased due to various factors. The main impact comes from offering less expensive plans and free usage options. U.S. regulations remain a significant reason for the decline, as they restrict mass messaging for unregistered marketing campaigns. Additionally, revenue has been affected by currency exchange rates, as well as customers’ financial situations and price sensitivity.
TextMagic AS’s consolidated unaudited interim report for the 6 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/
CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS FOR 6 MONTHS OF 2025
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| (in thousands of euros) | 30.06. 2025 | 31.12. 2024 | 30.06. 2024 | 31.12. 2023 |
| Non-current assets | ||||
| Property, plant and equipment | 483 | 581 | 102 | 105 |
| Intangible assets and goodwill | 31,941 | 32,972 | 32,921 | 32,854 |
| Total non-current assets | 32,424 | 33,553 | 33 023 | 32 959 |
| Current assets | ||||
| Trade and other receivables | 20 | 22 | 90 | 24 |
| Prepayments | 184 | 165 | 200 | 231 |
| Financial Investments | 0 | 0 | 3,500 | 2,500 |
| Cash and cash equivalents | 4,060 | 3,432 | 4,229 | 3,900 |
| Total current assets | 4,264 | 3,619 | 8,019 | 6,655 |
| TOTAL ASSETS | 36,688 | 37,172 | 41,042 | 39,614 |
| Current Liabilities | ||||
| Current tax liabilities | 215 | 270 | 411 | 232 |
| Trade and other payables | 734 | 913 | 882 | 791 |
| Lease liabilities | 115 | 107 | 0 | 0 |
| Contract liabilities | 1,506 | 1,669 | 1,668 | 1,659 |
| Other provisions | 338 | 384 | 679 | 1,117 |
| Total current liabilities | 2,908 | 3,343 | 3,640 | 3,799 |
| Long-Term Liabilities | ||||
| Lease liabilities | 250 | 309 | 0 | 0 |
| Total long-term liabilities | 250 | 309 | 0 | 0 |
| Total liabilities | 3,158 | 3,652 | 3,640 | 3,799 |
| Equity | ||||
| Share capital | 861 | 850 | 33,575 | 850 |
| Share premium | 141 | 141 | 141 | 51,242 |
| Reserve capital | 85 | 85 | 85 | 85 |
| Voluntary reserve | 27,710 | 27,710 | 0 | 0 |
| Other reserve | 376 | 1,235 | 2,360 | 2,035 |
| Foreign currency reserve | (27) | (35) | (13) | (21) |
| Retained earnings | 4,384 | 3,534 | 1,254 | (18,376) |
| Equity attributable to owners of the parent | 33,530 | 33,520 | 37,402 | 35,815 |
| Total equity | 33,530 | 33,520 | 37,402 | 35,815 |
| TOTAL EQUITY AND LIABILITIES | 36,688 | 37,172 | 41,042 | 39,614 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| (in thousands of euros) | 01.01.2025- 30.06.2025 | 01.01.2024- 30.06.2024 |
| Revenue | 7,115 | 7,809 |
| Other income | 63 | 59 |
| Goods, raw materials and services | (2,544) | (2,396) |
| Other operating expenses | (715) | (1,050) |
| Work performed by the entity and capitalized | 1,311 | 2,083 |
| Employee expenses | (2,649) | (3,346) |
| Depreciation, amortization and impairment of non-current assets | (2,704) | (2,052) |
| Other expenses | 0 | (10) |
| Operating profit (loss) | (123) | 1,097 |
| Financial Income | 38 | 152 |
| Profit (loss) before tax | (85) | 1,249 |
| Income tax | (8) | (4) |
| Profit (loss) for the period | (93) | 1,245 |
| Other comprehensive income |
| |
| Items that are or may be reclassified subsequently to profit or loss | ||
| Foreign currency translation differences | 8 | 8 |
| Other comprehensive income for the period, net of tax | (85) | 1,253 |
| Total comprehensive income for the period | (85) | 1,253 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| (in thousand euros) | 01.01.2025 – 30.06.2025 | 01.01.2024 – 30.06.2024 |
| Cash flows from operating activities | ||
| Profit (loss) for the period | (93) | 1,245 |
| Adjustments for: | ||
| Depreciation and amortization | 2,704 | 2,052 |
| Financial Income | (38) | (152) |
| Other adjustments | 84 | 169 |
| Total adjustments | 2,750 | 2,069 |
| Changes in trade and other receivables | 2 | (66) |
| Changes in contract liabilities | (163) | 9 |
| Changes in prepayments | (18) | 34 |
| Changes in trade and other payables | (280) | (167) |
| Net cash from operating activities | 2,198 | 3,124 |
| Cash flows from investing activities | ||
| Interest received | 38 | 152 |
| Fixed-term deposits | 0 | (1,000) |
| Acquisition of property, plant and equipment | (4) | (30) |
| Development expenditure | (1,557) | (1,925) |
| Net cash used in investing activities | (1,523) | (2,803) |
| Cash flows from financing activities | ||
| Lease liability principal repayments | (66) | 0 |
| Contribution to the share capital | 11 | 0 |
| Net cash from financing activities | (55) | 0 |
| TOTAL CASH FLOWS | 620 | 321 |
| Cash and cash equivalents at the beginning | 3,432 | 3,900 |
| Effect of movements in exchange rates on cash held | 8 | 8 |
| Cash and cash equivalents at the end | 4,060 | 4,229 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (in thousands of euros) | Total equity attributable to owners of TextMagic AS | |||||||
| Share Capital | Share premium | Reserve capital | Voluntary reserve | Other reserve | FX translation reserve | Retained earnings | Total equity | |
| Balance at December 31, 2023 | 850 | 51,242 | 85 | 0 | 2,035 | (21) | (18,376) | 35,815 |
| Profit (loss) for the period | 0 | 0 | 0 | 0 | 0 | 0 | 1,245 | 1,254 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 8 | 0 | 8 |
| Coverage of losses | 0 | (18,376) | 0 | 0 | 0 | 0 | 18,376 | 0 |
| Other changes in equity | 32,725 | (32,725) | 0 | 0 | 325 | 0 | 9 | 334 |
| Balance at June 30, 2024 | 33,575 | 141 | 85 | 0 | 2,360 | (13) | 1,254 | 37,402 |
| Profit (loss) for the period | 0 | 0 | 0 | 0 | 0 | 0 | 808 | 808 |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | (22) | 0 | (22) |
| Transactions with shareholders | (5,015) | 0 | 0 | 0 | 0 | 0 | 0 | (5,015) |
| Other changes in equity | (27,710) | 0 | 0 | 27,710 | (1,125) | 0 | 1,472 | 347 |
| Balance at December 31, 2024 | 850 | 141 | 85 | 27,710 | 1,235 | (35) | 3,534 | 33,520 |
| Profit (loss) for the period | 0 | 0 | 0 | 0 | 0 | 0 | (93) | (93) |
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 8 | 0 | 8 |
| Transactions with shareholders | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 11 |
| Other changes in equity | 0 | 0 | 0 | 0 | (859) | 0 | 943 | 84 |
| Balance at June 30, 2025 | 861 | 141 | 85 | 27,710 | 376 | (27) | 4,384 | 33,530 |
Attachments
- TextMagic AS_2025. aasta 6 kuu auditeerimata konsolideeritud vahearuanne
- TextMagic AS_2025 6months consolidated unaudited interim report (Translation of the Estonian original)
