Qwamplify: Revenue Down by 35%, but Cash Reserves Up by 11%
Marketing group Qwamplify reveals a contrasting fiscal year 2025: despite a drop in revenue to €27.1 million from €41.9 million the previous year, the company maintains profitability and strengthens its cash position. However, an accelerated decline at the start of 2026, with a 28% decrease in gross margin in the first quarter, suggests that the challenges in the French digital marketing market are not confined to the past year. Led by Cédric Reny, the group commits to reversing the trend through reorganization and investments in artificial intelligence, though visibility remains limited.
2025 Financial Performance
The 2025 revenue stands at €27.1 million, compared to €41.9 million in 2024 as reported. On a like-for-like basis, excluding the divestiture of the Nordic subsidiary deconsolidated in the second half after its sale on July 1, 2025, the decline is 14%. The gross margin is set at €18.8 million, versus €28.9 million in the reference year 2024, while the gross margin rate remains nearly stable at 69.2% compared to 69.1%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a sharper decline of 55%, at €1.7 million, due to reduced operational leverage. However, the group achieved significant cost reductions: salaries and social charges decreased by 35% (savings of €7.4 million), and direct purchases dropped by 36%. These adjustments allowed the operating result to reach €1.3 million (7% gross margin) and the net income attributable to the group to reach €1.1 million (6% gross margin), down only 13% despite the revenue drop. Comparability is complicated by a 15-month year in 2024.
Strengthened Financial Position
Beyond operational contraction, Qwamplify consolidates its balance sheet position. Total cash reserves reached €15.8 million, up by 11% despite €1.04 million in capital investments for the AI-enhanced Shopper platform. After deducting client fund calls (€8.7 million), the net cash position stands at €6.4 million, up by 17%. More significantly, net financial debt decreased by 57% to €0.6 million, allowing the net cash position to improve by 44% to €5.8 million. This improvement results from strict cash management and the proceeds from the sale of the Nordic subsidiary (€0.7 million generating a consolidated gain of €0.36 million). This financial strength allows for the distribution of a dividend of €0.1 per share, proposed at the general meeting on July 9, 2026.
Persistent Downtrend into 2026
The downward trend continues into 2026. First-quarter revenue reached €5.4 million, down by 26.5% (10% on a like-for-like basis after the deconsolidation of Qwamplify Pro sold on January 1, 2026). Gross margin contracted by 27.7% to €3.9 million (15% on a like-for-like basis). The group notes that growth in Data activities has not offset the decline in digital and email marketing activities, while the Shopper activity stabilized during the quarter. For the coming months, Qwamplify announces a reorganization of its executive management along with a cost-saving plan deployed in the second quarter, as well as an acceleration of investments in artificial intelligence. The Shopper platform is expected to go into production in the second half of 2026. Cédric Reny, CEO, sees an opportunity for a rebound and states that 'our reorganization and cost savings should allow us to remain profitable in 2026.' However, the group remains cautious, citing an uncertain context regarding consumption, inflation, and pressures on marketing budgets, while estimating that 'the trend in the coming months should not yet reverse.'
