SSH Communications Security Oyj Q2 2025 Earnings Call Highlights: Strategic Growth, Partnership with Leonardo, and Moderate Revenue Increase

SSH Communications Security Oyj reported Q2 2025 earnings with net sales growth of 5.7% to EUR 5.4 million, EBITDA of EUR 0.4 million, and a 10.9% increase in subscription ARR. PrivX sales grew by 15.1%, and invoicing increased by 35%. The company established a strategic partnership with Leonardo S.p.A. and secured a EUR 20 million investment. However, currency headwinds affected sales growth, and cash flow from operations was negative. The company aims for higher growth and will balance its efforts with other partnerships and the US market.

SSH Communications Security Oyj (FRA:XXH) reported its Q2 2025 earnings, highlighting a net sales growth of 5.7% to EUR 5.4 million. The company's EBITDA stood at EUR 0.4 million, and there was a 10.9% increase in subscription ARR. PrivX sales grew by 15.1%, and invoicing increased by 35% [1].

The quarter was marked by a strategic partnership with Leonardo S.p.A., which involved a EUR 20 million investment. The partnership aims to enhance SSH's market reach and strategic opportunities [2]. However, currency headwinds had a significant impact on sales growth, which would have been 7.6% at a constant currency rate. Additionally, cash flow from operations was negative at EUR 1.4 million [1].

The company's interim CEO, Rami Raulas, emphasized that while the Leonardo partnership is significant, SSH will not lose focus on other partnerships or the US market. The sales process with Leonardo will involve exclusivity in certain areas, such as defense and space, while maintaining direct customer interactions [3].

SSH Communications Security Oyj aims for higher growth and will balance its efforts between the new partnership and other strategic plans. The company is also strengthening its presence in Italy, with plans to increase personnel and resources [3].

Despite the mixed results, SSH's Q2 2025 earnings show a mix of positive and negative factors. The company's focus on strategic partnerships and market expansion is promising, but the impact of currency headwinds and negative cash flow from operations are areas of concern.

References:
[1] https://www.gurufocus.com/news/2986639/q2-2025-ssh-communications-security-oyj-earnings-call-transcript
[2] https://ca.finance.yahoo.com/news/ssh-communications-security-oyj-fra-070200683.html
[3] https://ca.investing.com/news/company-news/ssh-communications-security-oyj-fraxxh-q2-2025-earnings-call-highlights-strategic-growth--4107448