Sinch 2Q organic revenue, +2%

Sinch 2Q organic revenue, +2%

Sinch AB (STO: SINCH) has reported its second quarter 2025 results, showcasing continued organic growth momentum despite significant foreign exchange headwinds. The company's stock closed at 28.94 SEK on July 21, 2025, down 1.33% ahead of the earnings presentation, but has shown resilience with the price sitting well above its 52-week low of 15.70 SEK [2].

Key Financial Highlights
Sinch reported its fourth consecutive quarter of organic growth, with net sales increasing 2% year-over-year. However, reported net sales declined 6% due to significant foreign exchange translation effects. Gross profit grew 6% organically, with all regions and product categories contributing positively to this growth [2].

The company’s gross margin improved to 35.1% in Q2 2025, up from 33.1% in Q2 2023, reflecting a favorable shift in product and customer mix. Similarly, the adjusted EBITDA margin reached 13%, compared to 12% in the previous year. Adjusted EBITDA increased 8% organically year-over-year, although reported figures showed no growth due to FX translation effects [2].

Regional Performance
All geographic regions contributed to Sinch’s organic growth in Q2 2025. The Americas segment saw 2% organic growth in net sales and 6% in gross profit, with gross margin increasing by 2 percentage points to 35%. EMEA delivered 3% organic growth in net sales and 7% in gross profit, with gross margin rising 2 percentage points to 33%. Meanwhile, APAC achieved 2% organic growth in net sales and 3% in gross profit, with gross margin improving by 1 percentage point to 41% [2].

AI Investments
A significant portion of Sinch’s presentation focused on the company’s advancements in artificial intelligence capabilities. The company has implemented its Model Context Protocol (MCP), which enables autonomous AI agent communication across Sinch’s global platform. Other AI innovations include Conversational Solution packages offering pre-configured AI-enhanced bundles, AI-powered email quality assurance with automated accessibility compliance (Mailgun Inspect), and new cross-channel summarization and auto-translation capabilities for contact centers [2].

Strategic Initiatives
Sinch is also expanding its AI ecosystem through strategic partnerships. The company’s SMS technology powers Salesforce (NYSE: CRM) Agentforce’s autonomous agents with predictive engagement and intelligent lead qualification. Additionally, Sinch’s integration with Microsoft (NASDAQ: MSFT) Dynamics Customer Insights enables AI-orchestrated customer journeys at scale [2].

Forward-Looking Statements
Sinch reaffirmed its mid-term financial targets of achieving 7-9% organic growth in net sales and gross profit year-on-year by the end of 2027. The company also aims to reach an adjusted EBITDA margin of 12-14% by the end of 2027 [2].

References
[1] https://finance.yahoo.com/news/zhulian-corporation-berhad-second-quarter-223443582.html
[2] https://www.investing.com/news/company-news/sinch-q2-2025-slides-reveal-margin-improvement-and-ai-advancements-as-growth-continues-93CH-4144972
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TI1ET:0-nxp-semiconductors-falls-after-posting-decline-in-quarterly-revenue/
[4] https://www.marketscreener.com/news/sinch-expected-to-report-sek-805-million-in-adjusted-ebitda-factset-ce7c5cdfd18ffe27
[5] https://www.mediaplaynews.com/netflix-posts-11-billion-in-q2-revenue-3-1-billion-profit-ups-fiscal-2025-revenue-forecast/