LINK Mobility - Q2 25 - Solid growth and M&A lifting LTM adj. EBITDA to NOK 1.1 billion

Q2 2025 was a milestone quarter for LINK with the acquisition of South African market leader SMSPortal, a transformative deal lifting last twelve months proforma adjusted EBITDA to NOK 1.1 billion and expanding into a new continent. LINK delivered 7% proforma gross profit growth and a 12% increase in proforma adjusted EBITDA despite tough comparables, both in fixed currency. The growth was driven by an increasing demand for higher margin conversational solutions on OTT channels like RCS and WhatsApp. During the quarter, LINK also completed the acquisitions of The SMS Works and FireText Communications and issued a new EUR 100 million senior unsecured bond (LINK03), successfully completing the refinancing of the LINK01 bond. Following the close of the second quarter, LINK proudly marked its 25-year anniversary on 7th of July. Over the past quarter-century, the company has evolved from a local messaging provider into a global player, serving more than 55,000 enterprises across multiple markets.

In 2Q25 proforma gross profit passed NOK 0.5 billion, up 7% yoy despite elevated comparables from campaign-driven peaks in the same period last year. Performance was supported by strong growth in high-margin conversational solutions, supporting margin expansion and gross profit growth. Organic gross profit growth was reported at 5% as a small number of large enterprise clients reduced their non-critical communication spend, creating a headwind equivalent to 2-3 percentage points of growth. This impact is expected to diminish by year-end. The underlying market trends remain solid, with continued opportunities for growth through richer channels offering enhanced customer engagement. Proforma adjusted EBITDA shows robust growth of 12% and reached nearly NOK 0.3 billion, once again underscoring the scalability of LINK's business model and in line with organic adjusted EBITDA growth of 11% in the quarter.

LINK's recurring and growing business is driven by more than 55,000 loyal customers continuing to increase their usage. Growth momentum is supported by both increased adoption rates for digital messaging and traction on higher margin CPaaS software solutions and OTT channels like RCS and WhatsApp. 2Q25 was an exceptional quarter for CPaaS, marked by record-high closed won contracts driven by richer messaging solutions. CPaaS contract wins exceeded A2P for the first time, while RCS contracts grew 4x to represent 24% of total contracts won.

Inorganic growth, a core element of LINK's strategy, saw notable momentum in 2Q25, driven by the successful completion of key initiatives. In April, LINK completed the acquisition of two prioritized targets in the attractive UK market, which represents a strong growth potential. At the end of June, LINK announced the acquisition of the South African market leader SMSPortal, with the transaction expected to close in early September. This acquisition marks a significant milestone, expanding LINK's presence beyond Europe and increasing adjusted EBITDA and cash EBITDA to NOK 1.1 billion and NOK 0.9 billion respectively, on a pro forma LTM basis. A key priority for the company going forward is the integration of SMSPortal, with a focus on realizing synergies and unlocking growth opportunities.

Building on a strong financial position, LINK remains well-placed to pursue further M&A opportunities and extend its proven track record of successful acquisitions. The current acquisition pipeline is progressing well and representing a combined cash EBITDA potential of more than EUR 15 million, with three targets in active due diligence. Given the still highly fragmented nature of the messaging industry, there remains significant scope for further consolidation, and LINK remains committed to pursuing strategic opportunities.

LINK reiterates its medium-term ambitions of sustaining high single-digit gross profit growth, with adjusted EBITDA expected to grow at a faster pace, supported by the company's scalable business model. Inorganic growth remains a key strategic pillar, with accretive M&A as first priority. The company maintains a disciplined capital allocation policy that prioritizes value-accretive M&A, while staying within a net debt to adjusted EBITDA roof of 2.0 to 2.5x.

"We are proud of the substantial progress LINK achieved in the second quarter, combining solid growth with a landmark transaction. The acquisition of SMSPortal marks a level-up milestone, transforming LINK into a 1.1 billion adjusted EBITDA company. The trend of accelerated growth for higher margin advanced conversational solution on RCS and WhatsApp is continuing both in the P&L as well as all-time high new contracts for CpaaS products. We will continue to drive growth, expand our footprint, and strengthen our position in the global CPaaS market in the years to come" says Thomas Berge, CEO of LINK.

The quarterly results will be presented in an audio webcast at 10:00 CEST today by Thomas Berge, CEO and Morten Edvardsen, CFO & VP Investor Relations.

The audio webcast targets investors, analysts and media. Attendees will be able to post questions in a Q&A session following the webcast.

To join the audio webcast and post questions, please go to:
https://channel.royalcast.com/landingpage/hegnarmedia/20250820_16/

The webcast is also available from LINK's investor relations pages:
https://linkmobility.com/investor-relations

For further information, please contact
Morten Løken Edvardsen, CFO & VP Investor Relations
+47 90 56 15 89 ir@linkmobility.com

About LINK Mobility
LINK is an award-winning, leading global provider of mobile messaging and communications platform as a service (CPaaS) solutions for increased engagement. The company serves enterprise, SME and government customers. LINK offers a wide range of innovative and scalable mobile solutions, creating valuable digital convergence between businesses and customers, governments and citizens, platforms and users. LINK has more than 55 thousand active customer accounts globally and exchanges more than 22 billion messages a year. LINK is listed on the Oslo Stock Exchange under the ticker LINK. For more information about LINK, please see www.linkmobility.com and follow LINK Mobility on LinkedIn.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.