Digital Workforce Q4’25 preview: Strong end to year expected

Source: Inderes

Digital Workforce, the software robotics automation expert, will publish its 2025 financial statements on Wednesday, February 18, 2026. We predict that revenue will have grown significantly, fueled by acquisitions and strong organic growth alike. In addition, we expect profitability to have been strong, driven by efficiency measures and growth in higher-margin continuous revenue. In the report, we will pay particular attention to guidance for 2026 and comments on the outlook for organic growth, considering the recent major deal in the United States. Our extensive report on the company published in December that is still very topical is available here.

We expect strong growth driven by M&A activity in Q4

We expect Digital Workforce's revenue to have grown by 24% to 8.7 MEUR in Q4. Organically, we expect revenue to have grown by 5%. Growth is clearly better than the IT services sector (Q3 -2%), but slower than last year and the big picture potential. By business segment, we forecast revenue from "more valuable" continuous services to have grown by 31% to 6.0 MEUR and professional services by 10% to 2.7 MEUR. The acquisition largely consisted of continuous revenue.

In terms of sales, the company has secured several promising contracts at the beginning of the year, and we understand that the sales pipeline is strong. Geographically, we will monitor comments on the development of the growth markets, the UK and Ireland, as well as the US.

We predict a clear improvement in profitability, driven by continuous services

We expect EBITDA to have grown significantly to 0.9 MEUR, or 11% of revenue, in Q4 (Q4’24 0% and Q3’25 4%). Profitability improvements are supported by several cost-saving measures and, in particular, growth in revenue from continuous services. In general, the earnings level and profitability at Digital Workforce are sensitive on a quarterly basis, as the company's size is still small, and thus the start and end of individual larger projects can significantly affect the profitability level of a single quarter. In addition, the timing and scale of investments can vary relatively clearly on a quarterly basis and affect profitability. Thus, profitability can fluctuate relatively clearly within the year. However, the Q4 earnings level should be strong, otherwise the company would have had to issue a profit warning. Our adjusted EBITDA forecast for the whole of 2025e is 1.4 MEUR vs. 1.0 MEUR in 2025 (EBITDA increases in guidance). Depreciation will increase as a result of the acquisition (forecast: 0.5 MEUR). We don't expect any surprises on the other earnings lines. Consequently, we expect EPS to have increased to EUR 0.04 and, adjusted for goodwill amortization, to EUR 0.08 in Q4.

The company updated its dividend policy in early 2025, and its target is to pay at least 30% of the result as dividends. We expect the company to distribute dividends of 4 cents per share for 2025, which corresponds to 46% of the adjusted result.

We expect revenue to grow significantly and scale well into profitability in 2026

We forecast the company's revenue to grow by 20% in 2025, driven by an acquisition (organically 7%). In addition, we estimate adjusted EBIT to grow to 2.7 MEUR, which corresponds to 8% of revenue (2025: 1.1 MEUR). The growth outlook is also supported by new contract wins, particularly a significant contract worth 1.4 MUSD per year with a large US healthcare organization that was announced just before the report. This will boost confidence in the company's competitiveness in the US market as well. In the report, we will pay particular attention to guidance for 2026 and comments on the outlook for organic growth, considering the recent major US contract.