Omda AS Q2 2025 slides: 16% revenue growth with recurring revenue reaching 79%

Omda AS (OB:OMDA) reported strong Q2 2025 results, with revenue increasing 16% to 121 MNOK and EBITDA nearly doubling to 23 MNOK (19% margin) year-over-year, driven by a successful strategic shift to a recurring revenue model now accounting for 79% of total revenue. The specialized healthcare and emergency response software provider confirmed its 2025 and 2026 revenue guidance and projects continued EBITDA margin expansion, highlighting its diversified portfolio and balanced growth strategy for sustainable performance in the specialized software markets.

Analysis

Omda AS (OB:OMDA) delivered a strong second quarter for 2025, validating its strategic shift towards a recurring revenue model and demonstrating significant operational leverage. The company reported a 16% year-over-year revenue increase to 121 MNOK, which was driven by 7% organic growth and contributions from acquisitions. More critically, profitability showed substantial improvement, with EBITDA nearly doubling to 23 MNOK and the corresponding margin expanding from 10% to 19% year-over-year. This margin enhancement is a direct result of the successful transition to a subscription model, as high-margin recurring revenues now constitute 79% of the total, while legacy license sales have been strategically reduced to just 1%. The company's Annual Recurring Revenue (ARR) base grew to 384 MNOK, indicating a solid foundation for future performance. Management's decision to confirm its 2025-2026 guidance, which projects a 2025 EBITDA margin of 23-27% and a long-term ambition of 30%, provides strong forward visibility and signals confidence in continued operational efficiency. The business's resilience is further supported by its diversification across six healthcare software niches and a broad geographic footprint, with 51% of revenue generated outside the Nordic region.

Key Decisions for Investors

• Investors should view the successful strategic pivot to a recurring revenue model, now 79% of the total, as a significant de-risking event that enhances revenue predictability and supports higher valuation multiples.
• The pronounced EBITDA margin expansion from 10% to 19% YoY, combined with a clear path towards a guided 23-27% margin for full-year 2025, suggests that the company's earnings power is inflecting upwards, a key catalyst for potential share price appreciation.
• Given the growth strategy relies heavily on M&A to supplement 5-10% organic growth, it is crucial to monitor the company's execution and integration of future acquisitions, as this represents a key variable in achieving its overall 15-30% total growth target.
• Consider the confirmed forward guidance and improving profitability metrics as primary drivers for valuation, rather than the minor share price dip ahead of the earnings release, as the fundamental outlook has been strongly reinforced.