Equasens H1 Profit Rises 10.5% as EBITDA Margin Expands

Equasens reported first-half net profit of €20.0 million, up 10.5% from a year earlier, as profitability improved faster than revenue. Current EBITDA rose 11.9% to €33.3 million, lifting the EBITDA margin to 26.8% from 25.7% in the first half of 2025.

Revenue for the six months ended June 30 increased 7.3% to €124.5 million. Growth on a comparable basis was 1.4%, with most of the reported increase coming from acquired businesses and an initial contribution from Wave 2 of France’s Ségur digital-health program. Annual recurring revenue reached €111.1 million at the end of June, 8.8% above the level a year earlier.

Current operating income increased 11.9% to €23.7 million, taking the current operating margin to 19.0% from 18.2%. Net profit attributable to Equasens shareholders was €19.0 million, up 9.9%, and basic earnings per share increased to €1.26 from €1.15. The half-year consolidated accounts received a limited review from the company’s auditors.

Product mix and cost control lift margins

Equasens said in its half-year results release that the margin improvement reflected a more favorable product mix, expense discipline and the contribution of acquisitions. Personnel expenses increased 1.4% on a comparable basis, while acquired businesses added about 0.3 percentage point to the current operating margin.

The revenue mix helps explain why earnings grew faster than sales. Maintenance and subscription revenue rose 8.4% to €55.7 million, including 4.7% growth on a comparable basis. Software and services revenue jumped 24.9% to €21.7 million, helped by acquired operations, while sales of systems and equipment were nearly flat at €47.0 million, down 0.3%.

Acquisitions contributed €6.3 million of first-half revenue and Ségur Wave 2 added €0.6 million. Equasens bought an 80% stake in digital healthcare training provider Erevo at the start of 2026, with Erevo consolidated from December 31, 2025. Erevo alone contributed €3.9 million of first-half revenue to the Medical Solutions division, according to Equasens. The company had said in January that Erevo was expected to generate about €7.4 million of 2025 revenue and had profitability broadly in line with the group.

Below the operating line, net financial income declined to €1.3 million from €1.7 million, with Equasens pointing to a €0.3 million increase in the cost of debt. Income tax expense rose to €4.8 million from €4.6 million. The company said its average tax rate was about 20%, including the effect of France’s IP Box regime for qualifying intellectual-property income.

Pharmagest leads the operating improvement

Performance varied considerably across Equasens’ divisions. Pharmagest, the group’s largest business, increased revenue 3.6% to €89.0 million. Its current operating income rose 17.9% to €16.6 million, pushing the division’s operating margin to 18.6% from 16.4%. Equasens attributed the improvement to a favorable product mix, stable personnel costs and better profitability in Italy.

Axigate Link increased revenue 20.4% to €19.8 million, although comparable growth was 2.7%. Current operating income rose 15.4% to €5.0 million, while the division’s operating margin slipped to 25.5% from 26.6%. Acquired activities and €0.6 million of Ségur Wave 2 revenue accounted for part of the sales increase, while Equasens also reported organic growth in its hospital business.

Other divisions showed a less uniform picture. E-Connect revenue fell 17.4% to €6.2 million as demand weakened for mobility solutions, but its operating margin increased to 38.2% from 36.0% as costs were reduced. Medical Solutions revenue climbed 68.7% to €8.6 million because of Erevo, yet comparable revenue declined 8.9% and the division posted a €0.2 million current operating loss compared with a €0.3 million profit a year earlier. Equasens linked the decline to investment in the overhaul of its existing software offerings and related product development. Fintech revenue fell 13.5% to €0.9 million, while its current operating loss narrowed to €0.1 million from €0.3 million.

Net cash rises despite working-capital investment

Equasens ended June with net cash of €93.2 million, up from €83.6 million at the end of 2025. Gross cash increased to €140.2 million from €136.8 million. The balance sheet also showed a rise in non-current financial assets to €71.2 million from €50.4 million, reflecting the placement of some liquidity in medium-term notes.

Cash generation remained positive, but more funds were tied up in working capital during the half. Cash flow generated by operations increased to €33.1 million from €29.6 million. After interest and taxes, the figure was €26.5 million. Working-capital movements absorbed €11.5 million, largely because Equasens increased equipment inventories to secure supplies and prices. Operating investment was €6.7 million, of which €5.3 million related mainly to development work.

The company repaid €12.6 million of borrowings during the period, including €2.1 million associated with IFRS 16, and took on a new €3.5 million loan connected with the remaining financing of 2025 acquisitions. Despite those uses of cash and the inventory build, the group’s net cash position increased by €9.6 million over six months.

For the rest of 2026, Equasens said it plans to continue adding artificial-intelligence functions to its business software, develop agent-based AI capabilities and expand software delivered through its private healthcare cloud. It also expects the rollout of Ségur Wave 2 functionality to continue through the first half of 2027. The release did not set a numerical full-year revenue or profit target. Equasens is scheduled to report third-quarter revenue on October 29 after the Paris market close.