Ekinops: EBITDA Drops by 42%, the Group Prioritizes Massive Investment Over Short-Term Profitability
European optical network specialist Ekinops closed 2025 with a revenue of €105.0 million, down 11%, but reported an expanding gross margin at 57.3%. However, EBITDA plummeted to €10.5 million (margin of 10.0% compared to 15.3% in 2024) and the net loss amounted to €7.2 million. These figures reflect a strategic shift: the group is voluntarily sacrificing short-term profitability to massively invest in 2026 in SASE and DCI solutions, in line with its Bridge plan.
Revenue and Market Dynamics
Ekinops recorded consolidated revenue of €105.0 million in 2025, down 11% from 2024 (-14% at constant exchange rates and scope). This contraction is due to a dual pressure: a 15% decline in Access equipment sales, particularly due to a significant drop from the main French client, and a 12% decrease in Optical Transport activity, a consequence of slowed investments in North America. Conversely, Software and Services sales jumped by 27%, now representing 25% of the group's annual activity. This growth includes contributions from Olfeo, a cybersecurity company acquired on June 1, 2025, which contributed €3.7 million to the revenue. The ARR (Annual Recurring Revenue) stands at €15.8 million, reflecting the group's increasing predictable revenue.
Financial Performance
Despite the revenue decline, the absolute gross margin came to €60.2 million versus €64.5 million in 2024, a limited drop of 7%. More significantly, the gross margin rate improved to 57.3% from 54.8% the previous year, reflecting a more favorable activity mix with the growing weight of higher profitability software and services. However, this gain is offset by a 4% increase in operational expenses, particularly due to the integration of Olfeo and a 10% rise in commercial and marketing expenses. As a result, EBITDA tumbled to €10.5 million (10.0% of revenue) from €18.0 million in 2024 (15.3%). The operating income breaks even (€0.0 million) after accounting for depreciation. With additional operational charges of €3.2 million (acquisition fees, ERP implementation, governance costs), the operating result deteriorated to -€3.2 million. The consolidated net result stands at -€7.2 million, compared to -€7.0 million in 2024.
Strategic Outlook for 2026
Ekinops enters 2026 with a clear but demanding roadmap: massive investments in R&D and commercial resources to accelerate its penetration in the SASE (network cybersecurity) and DCI (data center interconnection) segments. The group plans to hire around thirty engineers and developers in Lannion to develop the PTM (Photonic Transport Modular) platform, with the first product expected to be marketed by the end of 2026. Concurrently, the first single-vendor SASE solution will be available by the end of 2026. The integration of Olfeo, completed at the end of February with the team consolidation at Massy, is expected to create commercial synergies on SD-WAN and ZTNA solutions. Ekinops targets a 'single-digit' growth in 2026, but anticipates a decline in EBITDA margin over the year due to these investments. In the longer term, the group reaffirms its ambition to return to 'double-digit' growth in line with the Bridge plan. The net cash position stood at €6.3 million as of December 31, 2025 (available cash of €32.1 million against a financial debt of €25.8 million), providing flexibility to finance these investments.
