Overview
Verisure PLC said its fourth quarter of 2025 produced record new installations and robust revenue expansion, pushing annual recurring revenue (ARR) growth beyond the company’s guidance. The firm highlighted improvements in customer additions, steady churn, and higher average revenue per user, which together supported stronger-than-expected ARR and margin improvements.
Customer growth and unit economics
In Q4 2025 Verisure added 224,000 new customers, equal to a 5.9% year-over-year rise. That pace represented a record quarterly intake and was an increase versus the 5.2% growth rate recorded in the third quarter, showing sequential improvement. Customer attrition remained stable at 7.4% during the quarter, while average revenue per user (ARPU) advanced by 2.7% compared with the same period a year earlier.
Those dynamics contributed to ARR growth of 12.4% for the quarter, above the company’s guidance target of 12%.
Revenue, margins and annual results
Quarterly revenue rose 10.9% to 2965 million, marginally beating analyst expectations. On an adjusted basis, EBIT margin improved by 180 basis points year-over-year to 24.5% in Q4, helping lift the full-year adjusted EBIT margin to 25.4%.
For the full year 2025 Verisure reported 3.9% growth in new installations, finishing the year with a total customer base of 6.2 million customers, a 10% increase from the prior year. The company generated operating profit of 953 million for the year, slightly above its prior guidance range of 940-950 million.
Outlook and targets for 2026 and beyond
Looking ahead, Verisure provided guidance for 2026 that calls for roughly 10% ARR growth and an adjusted EBIT margin above 26%. The company also forecast positive free cash flow in 2026, intends to maintain leverage in the 2.5-2.75x range by year-end, and plans to commence dividend payments in the second half of the year.
Management confirmed its medium-term objectives, reiterating an aim for annual ARR growth of approximately 10% and a long-term adjusted EBIT margin target of 30%.
Analyst view
Morgan Stanley kept an Overweight rating on Verisure and set a price target of 19.50, which the firm said implies more than 50% upside from the current share price of 12.50.
Implications
The quarter reinforced the company's growth trajectory, with record installations, stable churn, and modest ARPU gains combining to lift ARR and margins. Management's 2026 guidance and the reaffirmed medium-term targets signal confidence in continued top-line expansion and margin progression.