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Third party research

Litium: Earnings upside thanks to variable revenues - ABG

Litium

This is a third party research report and does not necessarily reflect our views or values

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Minor estimate changes
Potential start of variable revenue acceleration
EV/ARR 2x, '25e EV/EBITDA ~8x


Q4 in line

The Q4 report was in line with our estimates and quite uneventful again. ARR continues to grow sequentially, but more importantly, it appears that the conditions have improved for Litium's clients to the extent that variable revenue has started to increase as a share of total revenues. This means that Litium's client-linked scale could start to have a positive impact on revenue and EBITDA.
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