Virtualware: Gross Margin of 93.7% and Record Orders of €8M in 2025
Virtualware confirms an operational improvement trajectory by closing 2025 with solid audited results: expanding gross margin, rising EBITDA, and a record-high order book. However, this positive momentum masks a major challenge: the company must convert these business opportunities into profitable growth as it enters the final year of its three-year strategic plan. Investors will scrutinize how Virtualware manages this delicate balance between selective investment and financial discipline.
Financial Performance Highlights
Virtualware posted an audited revenue of €4.32 million for 2025, in line with its preliminary communication in February. However, the real positive signal lies elsewhere: the gross margin reached 93.7%, up from 86.8% the previous year, while EBITDA was €672,626 (a margin of 15.53%), an improvement over the previously reported €598,500. This progress reflects the final allocation of depreciation and the recognition of grants in the audited closure. The expansion of margins is explained by the increasing weight of software and XRaaS in the revenue mix, as well as by the reduction of direct costs. The VIROO XRaaS line, dedicated to the international commercialization of the proprietary VIROO platform, contributed €1.95 million.
Record Order Intake
The real turning point of the fiscal year lies in the annual order intake, which reached a record exceeding €8 million, driven primarily by governmental and nuclear projects. This exceptional commercial momentum contrasts sharply with a revenue of €4.32 million: thus, the order book represents more than one and a half times the company's annual revenue. While this asymmetry demonstrates robust demand for its immersive 3D solutions in major sectors, it raises a crucial question for investors: does Virtualware have the resources and execution structure to convert this backlog into profitable revenues over the next twelve months?
Entering 2026 with Renewed Financial Configuration
Virtualware enters 2026 with a renewed financial configuration. The net financial debt stood at approximately €2.70 million at the end of 2025, but a cash inflow of €6.22 million received on January 8, 2026, allowed the company to repay its debt and switch to a proforma net cash position. This post-closure event normalizes the working capital requirement and enhances financial flexibility without affecting the 2025 income statement. The company thus enters the last year of its 2024-2026 Strategic Plan supported by this solid financial footing and increased visibility since its transfer to Euronext Growth Paris in June 2025 under the ticker ALVIR. The challenge, however, remains strategic: how to allocate this capital to support the transformation of €8 million in orders without compromising the operational discipline that has characterized the company's trajectory.
