Inside information, profit warning: F-Secure lowers full year 2025 revenue and adjusted EBITA outlook

F-Secure Corporation | Inside Information | 8 July 2025 at 6:30 p.m. EEST

F-Secure lowers its outlook for the full year 2025 revenue and adjusted EBITA. From an operational perspective, the adoption of new security services by Tier1 customers has progressed slower than expected. In addition, the closing of new Tier 1 deals, both with existing and new partners, has been delayed due to factors such as organizational changes, shifting priorities, limited resources, and evolving business cases.

More than 10 percent weakening of the U.S. dollar during the first half of the year has a strong impact, resulting in a negative effect of more than EUR 3 million on full-year forecast compared to the level at the beginning of 2025.

The revised profitability guidance reflects the revenue decline outlined above. While cost control has remained disciplined, F-Secure’s business model limits the ability to fully offset the lower revenue through cost reductions alone.

Despite these challenges, F-Secure maintains a strong opportunity pipeline and remains optimistic about future growth.

Updated outlook for 2025

Growth: F-Secure expects low single-digit currency-neutral revenue growth for 2025.
Profitability: The group’s adjusted EBITA margin is expected to be in the range of 32%–35% in 2025 (in 2024: 35.7%).

Background for the outlook:

• F-Secure expects the core consumer cyber security market to grow mid-single digit CAGR mid- to long-term1. F-Secure sees the potential to grow faster than the market, focusing on partner channel and its offering around Embedded security and Scam Protection. The growth may be moderated by the uncertainties around consumer sentiment in certain markets and general economic volatility.
• Partner business and especially Embedded services are expected to drive F-Secure growth during 2025. Growth is expected to accelerate throughout the year as new partners and services gradually start to generate revenue.
• Direct business revenue development is expected to be negative due to the continued strategy of refraining from paid customer acquisition.
• Gross margin is expected to be slightly lower than in 2024 (86.2%) due to growth of strategic partners with embedded solutions, as these typically have a lower gross margin level than F-Secure Total business.
• F-Secure continues to develop its service, operations and production capabilities further to meet Tier 1 partner requirements. These efforts are still reflected in the higher cost base. As business scales we expect to leverage continued service level investments across a wider partner base, leading to positive adjusted EBITA % development over time.
• Capex level is expected to remain at a similar level to 2024. However, new product development projects related to partner demand can have an impact on the outcome.

           1 Industry analyst views such as Gartner and IDC, and F-Secure management estimates.

Previous outlook for 2025 (issued on 6 February 2025)

Growth: F-Secure expects mid-single digit revenue growth for 2025.
Profitability: The group’s adjusted EBITA is expected to be approximately on the same level as in 2024 (EUR 52.2 million).

F-Secure will publish its Half-year Report for January–June 2025 on 18 July 2025. Due to the silent period, we will not comment on the performance of the first half of 2025 before the publication of the Half-year Report.

For further information, please contact:
Chief Financial Officer Sari Somerkallio
tel. +358 40 356 9251
investor.relations@f-secure.com

F-Secure in brief

F-Secure is Finland headquartered and globally operating consumer cyber security company. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki Ltd.

Read more: www.f-secure.com