Cancom reported a modest year-over-year revenue increase of 0.9% in the fourth quarter of 2025, continuing an improvement in top-line momentum that gathered pace over the course of the year. The Q4 result follows a progression from Q3's 0.3% growth and contrasts with declines of 0.4% in Q2 and 6.8% in Q1.
The sequential pattern points to an acceleration in growth despite a tougher year-ago comparison in the quarter. Management's preliminary figures showed EBITDA of €38.6 million for Q4, slightly ahead of market expectations and equivalent to an 8.0% margin compared with 5.5% in the same period last year.
That margin expansion and the outperformance on EBITDA underline a shift in the company's operating profile. The company noted improved business mix and the impact of cost reductions as contributors to profitability gains. Quarter-on-quarter EBITDA rose by more than 40%, a move that exceeded typical seasonal swings for the business.
On the cash side, the company saw a meaningful improvement in Q4 that offset a weaker cash performance during the first three quarters of 2025 versus 2024. The reported recovery in cash flow for the quarter helped stabilise the balance sheet ahead of the publication of full-year figures.
Drivers cited for the late-year growth acceleration included a return toward normalised German public-sector expenditure, particularly at the local level. The company and market observers expect German public spending to be an important growth contributor in the first half of 2026.
As expected with these preliminary results, Cancom did not provide formal guidance for fiscal 2026. Final results and an outlook are scheduled for release on March 26.
Analysts reviewing the quarter flagged continued uncertainty around memory supply and pricing in coming months. The update noted that price increases implemented so far have been accepted in the market, and that higher-end product portfolios are relatively better positioned to absorb price rises than lower-end offerings.
What this means
- Revenue momentum improved through 2025, culminating in a 0.9% year-on-year increase in Q4.
- EBITDA of €38.6 million achieved an 8.0% margin, reflecting mix shifts and cost actions.
- Cash flow rebounded in Q4 after weaker performance earlier in the year; final results and guidance to follow on March 26.