Tecnotree Reports Strong H1 2025 Performance, Achieves Positive Free Cash Flow and Expands in Europe
Tecnotree, a global leader in AI, 5G, and cloud-native digital platforms for the telecommunications industry, has announced its financial results for the first half of 2025. The company showcased robust operational performance, improved profitability, and sustained growth despite currency headwinds, while solidifying its presence in mature markets, particularly in Europe. These achievements underscore Tecnotree’s commitment to innovation and its ability to deliver value-driven solutions to customers worldwide.
Financial Highlights (H1 2025)
- Net Sales: EUR 34.2 million (EUR 34.9 million in H1 2024), representing a year-on-year decline of 2.1%. However, when adjusted for constant currency, net sales increased by 2.7% to EUR 35.9 million.
- Operating Result: EUR 9.6 million, up 20.6% from EUR 8.0 million in H1 2024.
- Operating Margin: Improved significantly to 28.0%, up 520 basis points from 22.8% in the same period last year.
- Foreign Exchange Losses: Increased to EUR 4.0 million compared to EUR 2.5 million in H1 2024.
- Net Result: EUR 2.6 million, down 30.0% from EUR 3.7 million in H1 2024.
- Free Cash Flow: A notable highlight was the positive free cash flow of EUR 2.1 million, reversing the negative EUR 3.9 million reported in H1 2024.
- Earnings Per Share: Remained stable at EUR 0.2.
- Order Book: Reached a record high of EUR 105.7 million, reflecting a 45.5% increase year-on-year (from EUR 72.6 million).
Key Achievements
New Customer Acquisitions
Tecnotree expanded its global footprint by securing multiple new customers across key regions, including Europe, South Africa, and mature markets such as the UK. This growth reflects increasing demand for Tecnotree’s AI-powered digital platforms, which are helping Communication Service Providers (CSPs) modernize their operations and enhance customer experiences.
Digital Stack Deliveries
The company successfully completed 10 critical digital transformation projects for leading CSPs, deploying a total of 695 features. These implementations spanned Mobile Virtual Network Operators (MVNOs) and Mobile Virtual Network Enablers (MVNX), leveraging Tecnotree’s cloud-native Business Support Systems (BSS) stack to drive efficiency and scalability.
Product Innovation and Feature Enrichment
Tecnotree continued to innovate by enhancing its product portfolio with new features on the Tecnotree Moments and Tecnotree Sensa platforms. These advancements strengthen AI/ML-powered customer value management, campaign-as-a-service capabilities, and multi-cloud readiness, enabling CSPs to unlock new revenue streams and improve operational agility.
Analyst Recognitions
Tecnotree’s leadership in the telecom technology space was further validated by its inclusion in six strategic Gartner reports in 2025. These include:
- Hype Cycle for Enterprise Communication Services, 2025
- Hype Cycle for Operations and Automation in the Communications Industry, 2025
- Market Guide for CSP Revenue Management & Monetization Solutions
- Market Guide for CSP B2B Digital Marketplace Solutions
- Market Guide for CSP Customer Management & Experience Solutions
- Hype Cycle for Customer Experience and Monetization in the Communications Industry, 2025
These recognitions reinforce Tecnotree’s position as a trusted partner for CSPs seeking cutting-edge solutions.
Industry Awards
Tecnotree received significant accolades during H1 2025, including being named Telecom Vendor of the Year at the Asian Telecom Awards 2025. This recognition highlights the company’s innovative GenAI-powered Customer Value Management (CVM) and Marketing Transformation suite, implemented with Emtel. Additionally, Tecnotree secured nominations in five categories at the TM Forum Excellence Awards 2025, including a finalist position for Excellence in ODA Implementation, underscoring its expertise in B2B2C monetization and Open Digital Architecture (ODA) deployments.
Strategic Partnerships
Tecnotree strengthened its alliances with global system integrators like HCL Tech and Accenture, accelerating its expansion into mature telecom markets. Collaborations with hyperscalers such as Microsoft Azure have further enhanced Tecnotree’s cloud-native capabilities and market reach, ensuring seamless scalability and reliability for its customers.
Market Expansion and Order Book Growth
The company’s order book surged to a record EUR 105.7 million, driven by large-scale projects in the UK, Europe, and South Africa. Delivery milestones for these projects are weighted towards the second half of 2025 and beyond, positioning Tecnotree for continued growth in the coming quarters.
CEO Statement
Padma Ravichander, CEO of Tecnotree, expressed confidence in the company’s trajectory: “Our H1 2025 results demonstrate the strength of our operational discipline and strategic focus. Achieving positive free cash flow for the fifth consecutive quarter, while expanding our footprint in mature markets, reinforces our confidence in Tecnotree’s growth potential. We remain committed to delivering innovative, AI-driven solutions that empower our customers’ digital transformations and unlock new revenue opportunities. I am incredibly proud of our teams and partners for driving this success, and I look forward to maintaining this momentum throughout the remainder of the year.”
About Tecnotree
Tecnotree is a 5G-ready digital Business Support System (BSS) leader delivering AI/ML-enabled, cloud-native, and multi-cloud extensible solutions for telecommunications. With 59 TM Forum Open API certifications, Tecnotree provides agile order-to-cash and subscription management platforms, along with fintech and B2B2X multi-experience digital marketplaces via Tecnotree Moments. The company is listed on the Helsinki Nasdaq (TEM1V).
