Fondia: Financial Statements Release 2025 - Net sales decreased and profitability improved

Fondia Plc

Company release

2026-02-11 at 8.30 a.m. EET

Fondia Plc Group: Financial Statements Release, 1 January-31 December 2025  

FINANCIAL DEVELOPMENT IN BRIEF

Figures in parentheses refer to the corresponding period of the previous year, unless otherwise stated. Fondia Plc and its group companies are hereinafter referred to as "Fondia" or the "company".

October-December 2025 summary:

• Net sales EUR 6.3 million (6.5), a change of -3.3%
• EBITDA EUR 1.2 million (0.5)
• EBITDA-% 18.3% (7.8)
• Adjusted EBITDA EUR 1.2 million (0.7)*
• Adjusted EBITDA-% 18.8% (10.5)*
• Operating profit (EBIT) EUR 0.9 million (0.3)
• Operating profit-% (EBIT-%) 13.5% (3.8)
• Adjusted operating profit (EBIT) EUR 0.9 million (0.4)*
• Adjusted operating profit (EBIT-%) 14.0% (6.5)*
• Personnel (period average FTE) 133 (158), a change of -15.8%

*In October-December 2025, non-recurring expenses totalling EUR 32 thousand were recorded. Non-recurring expenses relate to the change negotiations within Finnish organisation. In the comparison period, EUR 171 thousand non-recurring expenses were recorded.

July-December 2025 summary:

• Net sales EUR 11.3 million (11.8), a change of -4.9%
• EBITDA EUR 1.5 million (0.7)
• EBITDA-% was 13.2% (5.8)
• Adjusted EBITDA EUR 1.5 million (0.9)*
• Adjusted EBITDA-% 13.5% (8.0)*
• Operating profit (EBIT) EUR 0.9 million (0.2)
• Operating profit-% (EBIT-%) 8.2% (1.6)
• Adjusted operating profit (EBIT) EUR 1.0 million (0.4)*
• Adjusted operating profit (EBIT-%) 8.5% (3.8)*
• Profit for the period EUR 0.6 million (0.1)
• Adjusted profit for the period EUR 0.6 (0.3)*
• Continuous monthly invoicing accounted for 49% (46) of net sales
• Personnel (period average FTE) was 136 (158), a change of -13.9%

*In July-December 2025, non-recurring expenses totalling EUR 32 thousand were recorded. Non-recurring expenses relate to the change negotiations within the Finnish organisation. In the comparison period, EUR 260 thousand non-recurring expenses were recorded.

January-December 2025 summary:

• Net sales EUR 23.9million (25.6), a change of -6.6%
• EBITDA EUR 2.0 million (1.9)
• EBITDA-% was 8.3% (7.6)
• Adjusted EBITDA EUR 2.4 million (2.3)*
• Adjusted EBITDA-% 10.2% (8.9)*
• Operating profit (EBIT) EUR 1.0 million (1.0)
• Operating profit-% (EBIT-%) 4.1% (4.0)
• Adjusted operating profit (EBIT) EUR 1.4 million (1.4)*
• Adjusted operating profit (EBIT-%) 6.0% (5.3)*
• Profit for the period EUR 0.6 million (0.7)
• Adjusted profit for the period EUR 0.9 (1.0)*
• Adjusted profit-% 3.9% (3.9%)
• Continuous monthly invoicing accounted for 46% (46) of net sales
• Personnel (period average FTE) was 141 (162), a change of -13.0%
• Net earnings per share was EUR 0.14 (0.16)
• The Board of Directors' (hereafter "the Board") dividend proposal is EUR 0.30 per share.

*In January-December 2025, non-recurring expenses totalling EUR 457 thousand were recorded. Non-recurring expenses relate to the change negotiations within the Finnish organisation. In the comparison period, EUR 344 thousand non-recurring expenses were recorded.

KEY FIGURES

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*In the financial year 2025, non-recurring expenses totalling EUR 457 thousand were recorded. Non-recurring expenses relate to the change negotiations within the Finnish organisation. In the comparison period, EUR 344 thousand non-recurring expenses were recorded.

**The figure presented differs from the previously reported figure of EUR 995 thousand, which does not take into account the tax impact of non-recurring expenses.

OUTLOOK FOR 2026

Fondia expects in the 2026 financial year the Group's net sales to grow and the adjusted EBITDA margin to improve compared to the previous year.

CEO TIMO LAPPI:

"The financial year 2025 was challenging for us, as expected. Fondia Group's net sales decreased by 6.6% compared to the comparison period. International net sales decreased by 2.2% compared to the compassion period, with Sweden decreasing 4.2% and the Baltics increasing 8.5%. Net sales in Finland decreased by 8.4% compared to the comparison period. The EBITDA and operating profit margins adjusted for non-recurring items improved despite the decrease in net sales. The Group's adjusted EBITDA margin (EBITDA-%) was 10.2% (8.9) and the adjusted operating margin (EBIT-%) was 6.0% (5.3).

Legal services sales during the financial year did not meet our targets. Economic uncertainty was reflected in reduced resource reservation of our Legal Department as a Service (LDaaS) customers, a decrease in assignment business, and unfortunately also in the challenges of acquiring new customers. On the other hand, we succeeded in keeping customer churn low among our Legal Department as a Service (LDaaS) customers, and the need for legal advice also increased, driven partly by the economic operating environment and partly by regulatory developments.

During the financial year, we succeeded in stabilizing our operations and laying the foundation for the future. We anticipated a challenging year in Finland as a result of the change negotiations earlier in the year. During the financial year, our growth challenges unfortunately continued in Sweden as well, where we operated part of the year with interim management arrangements and did not succeed in new customer acquisition at a sufficient level. On the other hand, the growth of our Baltic business was a delight of the financial year. The Group's net sales development was weaker than our expectations, particularly in the Swedish business, although the fourth quarter of the financial year was already good in terms of results. The uncertain market situation continued to have a weakening impact on the demand for our legal services in our ongoing services customer segment during the financial year.

During the first half of the financial year, two important things happened for us. First, we completed our strategy work. We updated our key initiatives for the coming years to implement our strategy and achieve profitable growth, as well as our medium-term financial targets. In the coming years, we will implement our strategy and pursue profitable growth through four key initiatives: enhancing customer work efficiency, strengthening employee experience, renewing our Legal Department as a Service (LDaaS) offering, and leveraging new legal technology. Another thing, and one that was more personal to me, was that I became Fondia's CEO for the second time. I was able to return to the company and the team that are important to me.

The results of the customer and employee satisfaction surveys carried out during the second half of the financial year were somewhat mixed. The customer satisfaction survey NPS score 68 (61) supports our strategic choices for high-quality customer work and service concept. In addition, the results also provided us with confirmation and further insight for developing our operations. The employee satisfaction survey eNPS score decreased and was 17 (19), which was a slight disappointment. Our financial performance and the measures taken to improve profitability inevitably also impacted on our eNPS results. As part of the employee satisfaction survey, we also received positive signals indicating that the actions taken to develop employee satisfaction are heading in the right direction. In the second half of the financial year, we completed the recruitment process for the managing director of the Swedish subsidiary, and we expect the managing director of Fondia Sweden Victoria Swedjemark to start at the beginning of March.

We will continue to reform our operations and, in the current financial year, focus on growth to ensure profitability development. Our operations will focus on customers and employees, as well as advancing our strategic projects. We closely monitor the market and react swiftly, without compromising the customer or employee experience. Work to improve growth and profitability continues."

October-December 2025

The Group's net sales decreased by 3.3% in October-December compared to the comparison period. Net sales in Finland decreased by 0.7% during the reporting period compared to the comparison period. Our international net sales decreased by 11.7% in October-December. In Sweden, our net sales decreased by 12.0%, and in the Baltics the decline was 10.0% compared to the comparison period. The Group's adjusted EBITDA margin (EBITDA-%) was 18.8% (10.5) and the adjusted operating margin (EBIT-%) was 14.0% (6.5) in October-December.

July-December 2025

The Group's net sales decreased by 4.9% in July-December compared to the comparison period. Net sales in Finland decreased by 4.0% during the reporting period compared to the comparison period. Also, our international net sales decreased by 7.8% in July-December. The growth in the Baltics was 5.4%, but in Sweden our net sales decreased by 10.5% compared to the comparison period. The Group's adjusted EBITDA margin (EBITDA-%) was 13.5% (8.0) and the adjusted operating margin (EBIT-%) was 8.5% (3.8) in July-December.

January-December 2025

During the reporting period January-December, our company's net sales decreased by 6.6% compared to the comparison period. Net sales during the reporting period decreased by 8.4% in Finland, and 4.2% in Sweden and net sales increased by 8.5% in the Baltics compared to the comparison period.  Our international net sales decreased by 2.2% during the reporting period. Our productivity, i.e. net sales per average FTE, increased by 7.3% compared to the comparison period. During the reporting period January-June, all ongoing services represented 46% (46) of the Group's net sales. The share of total invoicing for Legal Department Service (LDaaS) customers and other customers covered by ongoing services was 68% (73) of net sales. In Sweden, the share of all ongoing services was 41% (41) of net sales and in the Baltics 34% (34). All ongoing services represented 47% (46) of net sales in Finland. International net sales represented 24% (23) of the Group's total net sales. In January-December, the adjusted EBITDA margin was 10.2% (8.9) and the adjusted EBIT margin was 6.0% (5.3).

INVESTOR COMMUNICATIONS

Fondia will publish its financial statements release for January-December 2025 Wednesday 11 February 2026 at 8.30 a.m. EET. The financial statements release will be available after publication on the company's website https://investors.fondia.com/fi/en/releases-and-publications/reports-and-presentations.

Fondia will present the financial statements review on the same day at 10.00 a.m. EET. The event will be held in Finnish and can be attended online by registering at https://events.inderes.com/fi/fondia/2025-tulos.

The recording of the event and the presentation material will be available later on the same day on company's website https://investors.fondia.com/fi/en/releases-and-publications/reports-and-presentations.

Helsinki, 11 February 2026

Fondia Plc

Board of Directors

For further information, please contact:

Timo Lappi, CEO, tel. +358 40 756 7809

Harri Savolainen, CFO, tel. +358 40 502 1919

Certified Adviser Aktia Alexander Corporate Finance Ltd, tel. +358 50 520 4098

Fondia in brief

Fondia solves the legal needs of companies by combining the best services from internal legal departments and law firms. Fondia operates in Finland, Sweden, Estonia, and Lithuania. Fondia employs around 160 people. The Group's net sales in 2025 were EUR 23.9 million.

www.fondia.com

Distribution:

Nasdaq Helsinki Ltd
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