Solocal: net profit of €15.7 million in the first half despite revenue decline of 8.9%
Solocal published its half-yearly financial statements as of 30 June 2026, approved by the board of directors on 29 July 2026. Despite declining activity, the group generated a net result of €15.7 million, compared to €5.5 million a year earlier. The order book increased by 7.5% over the semester, reaching €264.7 million, and management confirmed all its objectives for the 2026 financial year.
The publication highlights two contrasting trajectories. On one hand, revenue continues to decline across the group's three product lines. On the other hand, the reduction in expenses more than offset this decline at the EBITDA level, while the period's free cash flow became slightly negative.
Revenue declining across all three product lines, order book increasing
In the first half of 2026, consolidated revenue amounted to €149.5 million, compared to €164.1 million in the first half of 2025, a decline of 8.9%. On a constant scope basis, excluding Artur'In, which was integrated on 1 May 2026, the decline reached 9.6%. The acquired company contributed €1.3 million, recorded in the Connect offering.
The Booster product line (online advertising), the main business line with €89.2 million, declined by 6.7%. Connect (online presence management for SMEs) fell by 11.3%, to €34.6 million, and the Sites product line by 12.3%, to €25.7 million.
The order book, however, increased to €264.7 million as of 30 June 2026 compared to €246.3 million as of 31 December 2025. This increase is explained by sales (orders received) of €167.9 million over the semester, exceeding revenue recognised over the same period. Average revenue per advertiser (ARPA) increased by 2.8%, to €1,600. According to the published schedule, €112.8 million of this portfolio is to be recognised as revenue in the second half of 2026.
EBITDA margin raised to 20.1% by the reduction in expenses
EBITDA reached €30.0 million, up 8.5% compared to €27.7 million in the first half of 2025. In relation to revenue, it represents 20.1%, compared to 16.9% a year earlier, representing an increase of 3.2 percentage points. This movement is based on cost reduction: net external expenses decreased by €10.0 million, to €42.4 million, and personnel costs by €6.7 million, to €77.2 million.
The group attributes the reduction in external expenses to its ongoing cost reduction plan, better management of customer risk and the evolution of disputes. Headcount stood at 2,131 people as of 30 June 2026, of which 41% were sales staff, compared to 2,048 as of 31 December 2025.
With depreciation and amortisation reduced from €17.6 to €14.5 million, operating profit increased by 54.7%, to €15.5 million, or 10.4% of revenue compared to 6.1%. The financial result stood at €-3.1 million, compared to €-3.5 million, a development reflecting the reduction in financial charges following the full repayment of the revolving credit facility (RCF) in 2025. Pre-tax profit thus reached €12.4 million, compared to €6.5 million.
Net profit also includes a tax benefit of €3.2 million, corresponding to corrections relating to 2025, compared to a charge of €1.1 million a year earlier. It amounts to €15.7 million, or earnings per share of €0.44 compared to €0.16.
Net cash reduced to €11.6 million, annual objectives confirmed
The improvement in results was not reflected in the semester's cash flows. Free cash flow amounted to €-0.8 million, compared to €+14.0 million in the first half of 2025. They were notably affected by a change in working capital requirement of €-7.0 million (compared to €+4.8 million), which the group attributes to the decline in activity and the increase in accrued expenses on rents and licences. Investments totalled €8.5 million, compared to €8.3 million.
Gross cash stood at €76.6 million as of 30 June 2026, compared to €79.6 million as of 31 December 2025. Gross financial debt reached €64.9 million, compared to €57.9 million, comprising €24.3 million of Mini Bonds maturing in 2029, €30.7 million of lease liabilities (IFRS 16) and €7.3 million of earn-out debt related to the acquisition of Artur'In, completed on 30 April 2026 for a price of €10.4 million. Net cash thus stands at €11.6 million, compared to €21.7 million at the end of 2025, and the group indicates that it is complying with the financial ratios provided for in the Mini Bond documentation.
For the 2026 financial year, Solocal confirmed all its objectives: revenue growth in the fourth quarter of 2026 compared to the fourth quarter of 2025, including external growth, and an EBITDA margin expected around 20%. At 20.1% in the first half, it is already at this level.
