Published: 2025-10-28 08:00:10 EET
F-Secure Oyj - Interim report (Q1 and Q3)

F-Secure Interim Report 1 January-30 September 2025: Reimagining business through AI

F-Secure Corporation | Stock exchange release | 28 October 2025 at 8:00 am EET

F-Secure Interim Report 1 January–30 September 2025: Reimagining business through AI

This is a summary of F-Secure Corporation’s January–September 2025 Interim Report. The full report is a PDF file attached to this stock exchange release and available on the company website at www.investors.f-secure.com.

F-Secure Corporation is organizing a news conference today at 13:00 EET, which will be broadcast live. Details of the event and how to participate in the webcast can be found at the end of this release.

Highlights of July–September 2025

  • Currency neutral revenue grew by 1.3%. Reported revenue decreased by -0.8% to EUR 36.1 million (EUR 36.3 million).
      • Revenue from Partner channel increased by 0.4% to EUR 29.5 million (EUR 29.3 million).
      • Revenue from Direct channel decreased by -5.9% to EUR 6.6 million (EUR 7.0 million).
  • Adjusted EBITA was EUR 13.3 million (EUR 14.6 million), 37.0% of revenue (40.3%).
  • Earnings per share (EPS) amounted to EUR 0.04 (EUR 0.04).
  • Cash flow from operating activities before financial items and taxes was EUR 14.4 million (EUR 9.5 million).
  • After the reporting period, on 14 October, according to the decision of the Annual General Meeting, the second dividend instalment of EUR 0.02 per share was paid to shareholders.

Highlights of January–September 2025

  • Currency neutral revenue growth was 1.2%. Reported revenue increased by 0.8% to EUR 110.0 million (EUR 109.2 million).
      • Revenue from Partner channel increased by 1.7% to EUR 89.7 million (EUR 88.2 million).
      • Revenue from Direct channel decreased by -3.4% to EUR 20.3 million (EUR 21.0 million).
  • Adjusted EBITA was EUR 38.3 million (EUR 40.5 million), 34.8% of revenue (37.1%).
  • Earnings per share (EPS) amounted to EUR 0.10 (EUR 0.10).
  • Cash flow from operating activities before financial items and taxes was EUR 40.2 million (EUR 42.0 million).
  • Net debt amounted to EUR 149.2 million (EUR 165.4 million), and the leverage ratio was 2.9x.

Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented. Figures in this interim report are unaudited.

Outlook for 2025

Published on 8 July 2025

Growth: F-Secure expects low single-digit currency-neutral revenue growth for 2025.

Profitability: The group’s adjusted EBITA margin is expected to be in the range of 32%–35% in 2025 (in 2024: 35.7%).

Background for the outlook:

  • F-Secure expects the core consumer cyber security market to grow mid-single digit CAGR mid- to long-term1. F-Secure sees the potential to grow faster than the market, focusing on partner channel and its offering around Embedded security and Scam Protection. The growth may be moderated by uncertainties around consumer sentiment in certain markets and general economic volatility.
  • Partner business and especially Embedded services are expected to drive F-Secure growth during 2025. Growth is expected to accelerate throughout the year as new partners and services gradually start to generate revenue.
  • Direct business revenue development is expected to be negative due to the continued strategy of refraining from paid customer acquisition.
  • Gross margin is expected to be slightly lower than in 2024 (86.2%) due to growth of strategic partners with embedded solutions, as these typically have a lower gross margin level than F-Secure Total business.
  • F-Secure continues to develop its service, operations and production capabilities further to meet Tier 1 partner requirements. These efforts are still reflected in the higher cost base. As business scales we expect to leverage continued service level investments across a wider partner base, leading to positive adjusted EBITA % development over time.
  • Capex level is expected to remain at a similar level to 2024. However, new product development projects related to partner demand can have an impact on the outcome.

1 Industry analyst views such as Gartner and IDC, and F-Secure management estimates.

Financial targets

F-Secure's medium-term financial targets and dividend policy for the company reflect the company’s growth ambitions and strategic direction. Year 2025 is still a business ramp-up year, after which the journey towards achieving the financial targets is expected to accelerate.

  • Growth: High single digit growth (CAGR) with additional significant upside from major Tier 1 deals
  • Profitability: Adjusted EBITA margin approaching 40% as revenue reaches EUR 200 million
  • Dividend Yield: Around or above 50% of net profit, which can be adjusted as long as leverage is higher than the targeted level
  • Leverage: Net debt / adjusted EBITDA ratio below 2.5x, excluding temporary impact from acquisitions

F-Secure Corporation follows the Rule of 40 metric as internal performance measurement and guiding principle, according to which the combined revenue growth rate and profitability margin should be equal to or greater than 40%.

Financial performance

EUR million 7-9/2025 7-9/2024 Change % 1-9/2025 1-9/2024 Change % 1-12/2024
Revenue 36.1 36.3 -0.8% 110.0 109.2 0.8% 146.3
Gross Margin 30.2 31.4 -3.7% 93.2 93.9 -0.8% 126.0
% of revenue 83.9% 86.4%   84.7% 86.0%   86.2%
Operating expenses1 -16.6 -16.6 0.2% -54.3 -53.2 2.1% -73.3
Sales & Marketing -7.0 -7.8 -9.5% -23.9 -25.0 -4.3% -33.4
Research & Development -6.2 -5.5 11.5% -19.2 -17.5 10.1% -25.4
Administration -3.4 -3.3 4.3% -11.2 -10.7 3.9% -14.5
Adjusted EBITA1 13.3 14.6 -8.9% 38.3 40.5 -5.3% 52.2
% of revenue 37.0% 40.3%   34.8% 37.1%   35.7%
Items affecting comparability (IAC)2 0.0 -   0.1 0.2 -68.2% -1.4
EBIT 9.7 11.5 -15.8% 27.3 31.7 -13.8% 38.4
% of revenue 26.9% 31.7%   24.8% 29.0%   26.3%
Earnings per share (EUR)3 0.04 0.04 -7.3% 0.10 0.10 -2.8% 0.12
Earnings per share, adjusted for PPA amortization (EUR)3 0.04 0.05 -6.2% 0.13 0.13 -2.1% 0.16
Shareholder's equity per share, EUR       0.29 0.22   0.27
Operating cash flow 11.6 5.0 130.8% 32.0 29.7 7.6% 38.8
Cash conversion % 78.3% 40.5%   77.7% 75.0%   80.5%
Deferred revenue       23.2 25.2 -8.1% 28.5
Net debt (+) / Net cash (-)       149.2 165.4 -9.8% 163.6
Net debt/Adjusted EBITDA       2.9 3.1   3.1
Gearing, %       294.7% 435.8%   356.0%
Equity ratio %       18.7% 14.4%   17.4%
Personnel at the end of the period       532 530 0.4% 529
  1. Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
  2. A reconciliation and breakdown of items affecting comparability is presented at the end of this report.
  3. Based on the average number of shares for the reporting period.


Timo Laaksonen, President and CEO

Our Q3 performance was a mixed bag of great performance in the Nordics and Asia, offset by challenges in the rest of Europe, resulting in currency neutral growth of +1.3%. Due to the weak US dollar, reported revenue remained flat. As expected, third quarter profitability was strong with adjusted EBITA margin of 37.0%, with good cash conversion at 78.3%.

During the quarter, we continued to advance our strategy, focusing on innovation, operational excellence, and commercial performance, in pursuit of our vision to deliver the world’s leading security experience for consumers and partners alike. A recent study1 highlights a significant disconnect between consumer confidence and actual protection: while 69% of users believe they can identify scams, 43% reported falling victim to one in the past year. Young adults, despite being digital natives, are disproportionately affected. This gap highlights the need for smarter, behavior-aware security solutions. It is clear that our mission to protect people’s digital moments is more critical than ever, as consumers show a strong preference for cybersecurity services offered by trusted service provider brands.

Our evolution into an AI-native organization is exemplified by Horizon, our new partner business platform, and Halo, our new mobile-first scam protection service. These initiatives fundamentally reimagine software creation to deliver a new generation of user experience and unprecedented delivery speed. This dual value proposition — focused on AI-powered target market expansion and a context-aware, actionable user experience, complemented by AI-native operational excellence — position Horizon and Halo as proof of F-Secure's business transformation in the AI era. These products will be launched in the beginning of 2026. In general, we have witnessed a very high AI tool adoption rate among F-Secure Fellows. Those tools are currently widely tested and applied to optimize processes and practices wherever appropriate and meaningful.

Our commercial activity among Tier1 partners remained robust throughout the quarter. We secured several contract renewals and expansions, underscoring continued confidence in our offering. We signed an expansion agreement with a Tier 1 partner in Asia to integrate embedded deepfake scam protection capabilities, scheduled to be launched in Q2 2026. Additionally, we entered into a new embedded security agreement with a Tier1 insurance service provider, and the launch is planned for mid-2026. We continue to see strong growth potential and maintain a healthy pipeline of opportunities, especially in the Tier1 segment.

When looking at our Security Suite, we extended Total service for one of our major US partners to include the scam protection module, which successfully went live on October 1. We also onboarded a new major partner in the Asia-Pacific region for our Total service. Additionally, we signed an extension agreement with a Nordic banking partner to include scam protection in their Total offering. These developments highlight our continued ability to deepen relationships with key partners and expand the reach of our cyber security solutions across diverse markets.

In the Direct channel, revenue per user continued to trend upward, and strong user retention remained as a positive contributor. However, the number of subscribers declined, reflecting our strategic decision not to invest in paid subscriber acquisition. 

Looking ahead, our strategic vision remains clear and focused. Together with our dedicated F-Secure Fellows, trusted partners, and valued shareholders, we’re embracing new opportunities and ensuring F-Secure continues to lead in cybersecurity and innovation.

1 F-Secure Digital Perception-Reality Gap Report: https://www.f-secure.com/en/partners/insights/digital-perception-reality-gap-report-2025

 

Additional information

This is a summary of F-Secure Corporation’s January–September 2025 Interim Report. The full report is attached to this stock exchange release as a PDF file and available on the company website at www.investors.f-secure.com.

 

For additional information, please contact:

Chief Financial Officer Sari Somerkallio, tel. +358 40 356 9251, investor.relations@f-secure.com

 

Webcast

Everyone interested in F-Secure is welcome to follow the live webcast on the result publication day at 13:00 Helsinki time (EET). In the webcast, F-Secure’s President and CEO Timo Laaksonen and CFO Sari Somerkallio will present the results and after the presentation there will be time for questions. The event can be followed at https://fsecure.events.inderes.com/q3-2025/.

Analysts following F-Secure are invited to the presentation at the company headquarters, Tammasaarenkatu 7, Helsinki, Finland.

A recording of the event will be available after the event on the company's website.

 

F-Secure in brief

F-Secure is Finland headquartered and globally operating consumer cyber security company. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki Ltd.

Read more: www.f-secure.com


Attachments:
F-Secure Corporation January-September 2025 Interim report.pdf