WithSecure Corporation | Interim Report Q3 2025 | 22 October 2025 at 08:00 EEST
Highlights of July – September 2025 (“third quarter”)
- Annual Recurring Revenue (ARR)1 for Elements Cloud products and services increased by 3% to EUR 84.1 million (EUR 81.8 million)
- Elements Cloud ARR's decrease from the previous quarter was 1%
- Net Revenue Retention (NRR) for Elements Cloud was 97%
- Revenue for Elements Cloud increased by 1% to EUR 20.9 million (EUR 20.7 million)
- Adjusted EBITDA for Elements Company was EUR 4.0 million (EUR 1.6 million, restated)
- ARR for Cloud Protection for Salesforce increased by 44% to EUR 14.7 million (EUR 10.2 million)
- Net Revenue Retention (NRR) for CPSF was 113%
- Operative cash flow of the third quarter was EUR -2.9 million (EUR -0.6 million)
- Items affecting comparability (IAC) of adjusted EBITDA were EUR -5.6 million (EUR -0.4 million)
- On 8 August 2025, a consortium formed by CVC and Risto Siilasmaa announced a recommended cash tender offer of EUR 1.70 per share through Diana BidCo Oy to the shareholders of WithSecure Corporation
1 Annual recurring revenue (ARR) of cloud products is calculated by multiplying monthly recurring revenue of last month of quarter by twelve. Monthly recurring revenue includes recognized revenue within the month excluding non-recurring revenue and adjustments for one-off items
Highlights of January – September 2025
- Revenue for Elements Cloud products and services increased by 4% to EUR 64.3 million (EUR 61.8 million)
- Adjusted EBITDA for Elements Company was EUR 5.1 million (EUR 1.5 million)
- CPSF revenue increased by 57% to EUR 10.3 million (EUR 6.6 million)
Outlook for 2025
Outlook for 2025 (updated on 7 October 2025)
Annual recurring revenue (ARR) for Elements Cloud products and services will grow by 3-10 % from the end of 2024. At the end of 2024, Elements Cloud ARR was EUR 83.3 million.
Elements Company segment's Adjusted EBITDA will be 3-7% of revenue.
Annual Recurring Revenue (ARR) for Cloud Protection for Salesforce (CPSF) will grow by 20-35% from the end of 2024. At the end of 2024, CPSF ARR was EUR 12.8 million.
Outlook for 2025 (previous)
Annual Recurring Revenue (ARR) for Elements Cloud products and services will grow by 10-20% from the end of 2024. At the end of 2024, Elements Cloud ARR was EUR 83.3 million.
Elements Company segment's Adjusted EBITDA will be 3-7% of revenue.
Annual Recurring Revenue (ARR) for Cloud Protection for Salesforce (CPSF) will grow by 20-35% from the end of 2024. At the end of 2024, CPSF ARR was EUR 12.8 million.
Medium-term financial target (for Elements Company segment)
Over the next three years (2025-2027), WithSecure will become a “Rule of 30+” company.
The components of the target are
- Annual revenue growth as percentage
- Adjusted EBITDA as percentage of revenue
WithSecure is targeting to reach a sum of the components that exceeds 30.
Figures in this release are unaudited. Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented may include rounding differences and might therefore not add up precisely to the totals presented.
CEO Antti Koskela
The third quarter was marked by the public recommended cash tender offer for WithSecure shares. It also entailed the reorganisation of our partner- and customer-facing activities to align with our strategy and better support future growth as the flagship of European cyber security for mid-market enterprises.
During the third quarter, WithSecure Elements Cloud software and Co-Security services ARR continued to grow by 11% year-on-year. We continued to execute our strategy and expanded our offering with our partners to offer Exposure Management and Elements MDR (Managed Detection and Response). We also saw several customers starting to buy our Elements Infinite offering which includes all our platform capabilities. The number of end customers in the Elements business continued to grow. During the quarter, WithSecure also hosted SPHERE2YOU events in France and Germany, strengthening engagement with partners and customers across Europe.
In the third quarter our Managed Services ARR has declined 20%. Our current strategy is focusing on serving mid-market customers. In the transition to this focused strategy some of our large direct customers have churned and moved to different types of solutions than what WithSecure is providing. Unfortunately, compared to the original ARR outlook for 2025, the gap that these large customer churns cause is not recoverable during the remainder of the year. As a result of this, in October, we had to lower our outlook for the growth of ARR for our Elements Cloud products and services in 2025.
Elements Cloud revenue grew by 1% to EUR 20.9 million (EUR 20.7 million). The customer migrations from On-premise software to Elements Cloud continued in the third quarter, and On-premise revenue declined, as expected.
Adjusted EBITDA of the Elements Company Segment was EUR 4.0 million (EUR 1.6 million, restated), in the third quarter, partly driven by cost savings achieved through the company’s recently completed change negotiations. These negotiations, which focused on the earlier mentioned partner- and customer-facing activities, resulted in approximately EUR 6.5 million in annual savings.
Cloud Protection for Salesforce ARR grew by 44% year-over-year and was EUR 14.7 million (EUR 10.2 million). New customer acquisitions and expansions to existing customers continued, but the ARR was negatively impacted by the continued weakening of USD to EUR currency exchange rate. Adjusted EBITDA for Cloud Protection for Salesforce Segment was EUR 0.5 million (EUR -0.1 million).
In the second quarter, the divestment of WithSecure cyber security consulting was completed. The commercial terms in the divestment agreement included an earn-out component of EUR 4.5 million for 2025. At the end of the third quarter, it was estimated that the terms for this earn-out will not be met in 2025 which resulted in a write down of EUR 4.5 million in the discontinued operations in the third quarter.
Financial performance - WithSecure Group
| (mEUR) | 7-9/2025 | 7-9/2024 | Change % | 1-9/2025 | 1-9/2024 | Change % | 1-12/2024 |
| Continuing operations | |||||||
| Revenue | 28.5 | 28.7 | -1% | 88.0 | 86.1 | 2% | 116.0 |
| Cost of revenue | -5.2 | -5.7 | -10% | -16.4 | -17.5 | -6% | -23.4 |
| Gross Margin | 23.4 | 22.9 | 2% | 71.6 | 68.6 | 4% | 92.6 |
| % of revenue | 81.9 % | 80.0 % | 81.3 % | 79.6 % | 79.8 % | ||
| Other income for adjusted EBITDA1 | 0.4 | 0.7 | -41% | 0.6 | 1.6 | -60% | 2.0 |
| Operating expenses for adjusted EBITDA1 | -19.3 | -22.1 | -13% | -66.2 | -69.6 | -5% | -92.6 |
| Sales & Marketing | -9.3 | -11.5 | -19% | -34.3 | -35.7 | -4% | -47.9 |
| Research & Development | -6.7 | -8.4 | -20% | -23.1 | -26.5 | -13% | -35.0 |
| Administration | -3.3 | -2.1 | 53% | -8.8 | -7.4 | 18% | -9.7 |
| Adjusted EBITDA1 | 4.5 | 1.5 | 192% | 6.0 | 0.6 | 932% | 2.0 |
| % of revenue | 15.7 % | 5.3 % | 6.8 % | 0.7 % | 1.7 % | ||
| Items affecting comparability (IAC) | |||||||
| Other items | -3.1 | -0.6 | -3.1 | -1.6 | -1.6 | ||
| Divestments | 0.5 | 0.6 | -0.2 | 1.2 | 1.1 | ||
| Restructuring | -3.0 | -0.4 | -4.8 | -0.4 | -0.4 | ||
| EBITDA | -1.2 | 1.1 | -203% | -2.2 | -0.3 | -692% | 1.1 |
| % of revenue | -4.1 % | 4.0 % | -2.5 % | -0.3 % | 1.0 % | ||
| Depreciation & amortization, excluding PPA | -1.6 | -2.5 | -38% | -5.6 | -7.0 | -20% | -9.0 |
| PPA amortization2 | -0.5 | -0.5 | -9% | -1.5 | -1.7 | -15% | -2.2 |
| EBIT | -3.2 | -1.9 | -69% | -9.3 | -9.0 | -3% | -10.1 |
| % of revenue | -11.2 % | -6.6 % | -10.5 % | -10.4 % | -8.7 % | ||
| Adjusted EBIT1 | 2.9 | -1.0 | 389% | 0.4 | -6.4 | 106% | -7.0 |
| % of revenue | 10.2 % | -3.5 % | 0.4 % | -7.4 % | -6.0 % | ||
| Discontinued operations | |||||||
| Revenue | 0.0 | 7.5 | -100% | 10.4 | 23.1 | -55% | 31.4 |
| Adjusted EBITDA1 | 0.1 | 0.3 | -83% | -3.0 | 0.1 | -2115% | 1.1 |
| % of revenue | 4.4 % | -28.9 % | 0.6 % | 3.6 % | |||
| Items affecting comparability (IAC) | |||||||
| Divestments | -5.3 | -5.0 | 1.1 | ||||
| EBIT | -5.3 | -15.3 | 65% | -8.3 | -15.8 | 47% | -29.3 |
| % of revenue | -204.2 % | -79.7 % | -68.4 % | -93.6 % | |||
| Combined operations | |||||||
| Revenue | 28.5 | 36.1 | -21% | 98.4 | 109.2 | -10% | 147.4 |
| Adjusted EBITDA1 | 4.5 | 1.9 | 143% | 3.0 | 0.7 | 308% | 3.1 |
| % of revenue | 15.9 % | 5.1 % | 3.0 % | 0.7 % | 2.1 % | ||
| Earnings per share, (EUR)3 | -0.04 | -0.10 | 55% | -0.09 | -0.13 | 27% | -0.22 |
| Deferred revenue | 57.2 | 65.7 | -13% | 57.2 | 65.7 | -13% | 67.7 |
| Cash flow from operations before financial items and taxes | -2.9 | -0.6 | -399% | -3.1 | -5.7 | 44% | 2.1 |
| Cash and cash equivalents | 25.1 | 21.6 | 17% | 25.1 | 21.6 | 17% | 27.3 |
| ROI, % | -8.4 % | -60.8 % | -17.6 % | -27.1 % | -34.1 % | ||
| Equity ratio, % | 57.5 % | 66.6 % | 57.5 % | 66.6 % | 59.1 % | ||
| Gearing, % | -8.9 % | 4.0 % | -8.9 % | 4.0 % | 0.4 % | ||
| Personnel, end of period | 612 | 983 | -38% | 961 |
- Adjustments are material items outside the normal course of business associated with acquisitions, restructuring, gains or losses from sales of businesses and other items affecting comparability. For reconciliation and breakdown of adjusted costs, see Note 6 (Reconciliation of alternative performance measures)
- Amortization of intangible assets from business combinations (PPA, purchase price allocation, related amortizations).
- Based on the weighted average number of outstanding shares during the period 175,768,316 (1-9/2025). Earnings per share has been recalculated for comparative periods using average weighted share amount after share issues.
Events after period-end
On 6 October 2025, WithSecure Corporation announced that it had received an announcement from CVC Growth Partners II GP Limited in accordance with the Finnish Securities Market Act Chapter 9, Section 5. According to the announcement, the total number of shares and votes held by CVC Growth Partners II GP Limited through Diana BidCo Oy increased to above five (5) per cent and, together with the shares and voting rights held through financial instruments (shares and votes held by Mr Risto Siilasmaa acting in concert with CVC Growth Partners II GP Limited), the shares and votes represent 39.56 per cent of the total number of votes of WithSecure Corporation on 6 October 2025.
On 7 October 2025, WithSecure Corporation lowered its outlook for Elements Cloud products and services ARR growth for 2025. The company now expects its Annual Recurring Revenue (ARR) for Elements Cloud products and services to grow by 3-10 % from the previous year (previous outlook: 10–20 %). In the end of 2024, Elements Cloud ARR was EUR 83.3 million. The outlooks for Elements Company segment’s Adjusted EBITDA, (3-7% of revenue) and Cloud Protection for Salesforce ARR growth (20-35%) were maintained.
On 9 October 2025, Diana BidCo Oy announced it had received necessary regulatory approvals for the completion of the tender offer and confirmed that the condition to completion of the tender offer concerning the receipt of regulatory approvals had been fulfilled. On the same day, Diana BidCo Oy also supplemented the tender offer document related to the public tender offer due to the profit warning issued by WithSecure on 7 October 2025. The terms and conditions of the tender offer were unaffected by the publication of the supplement document.
The offer period for the recommended cash tender offer expired on 15 October. According to the final result of the recommended cash tender offer, the 150,508,855 shares validly tendered and not validly withdrawn in the recommended cash tender or which the shareholders of WithSecure have otherwise agreed to sell to Diana BidCo Oy in connection with the recommended cash tender offer, represent in aggregate approximately 85.6 percent of the shares and voting rights in WithSecure. These shares together with the 13,188,546 shares otherwise acquired by Diana BidCo Oy during the offer period, represent in aggregate approximately 93.1 percent of the shares and voting rights in WithSecure. As the minimum acceptance condition and all other conditions to completion of the recommended cash tender offer have been satisfied, Diana BidCo Oy will complete the recommended cash tender offer in accordance with its terms and conditions.
In October 2025, it was announced that Chief Revenue Officer Lasse Gerdt will leave the company. His successor has not yet been appointed. Chief Executive Officer Antti Koskela, Chief Financial Officer Tom Jansson and Chief Culture and Performance Officer Charlotte Guillou will assume the Chief Revenue Officer role in interim.
Additional information
This is a summary of WithSecure’s Interim Report 1 January – 30 September 2025. The full report is a PDF file attached to this stock exchange release. Full report is also available on the company website.
Financial calendar
WithSecure will publish its financial information dates of 2026 later in the fourth quarter of 2025.
WithSecure observes at least a three-week (21 days) silent period prior to publication of financial reports, during which it refrains from engaging in discussions with capital market representatives or the media regarding WithSecure’s financial position or the factors affecting it.