Ekinops Financial Update and Leadership Transition
EKINOPS (Euronext Paris - FR0011466069 – EKI), a prominent supplier of telecommunication solutions, has shared its financial performance for the third quarter of FY 2025. According to their recent report, the company generated a consolidated revenue of 79.5 million euros for the nine-month period, marking a decline of 10% from the previous year.
During the third quarter, Ekinops reported a revenue of 22.3 million euros, reflecting a significant drop of 27% compared to Q3 2024. The inclusion of Olfeo, a French cybersecurity software provider consolidated on June 1, 2025, accounted for 1.6 million euros of this revenue.
When adjusting for constant scope and exchange rates, the quarterly revenue experienced a more pronounced decline of 31%. The downward trend was chiefly attributed to a significant reduction in sales to Ekinops' largest customer, which negatively impacted overall revenue despite a 2% growth when excluding this customer.
Access Solutions and Optical Transport Sales
Access solutions sales plummeted by 17% during the nine-month period, primarily due to reduced activity in France, which is the company's main market for this segment. Notably, sales to the largest customer fell by 32%, following a robust growth performance in the previous year (+21%).
In contrast, the sale of Optical transport equipment saw a smaller decline of 3%. While Europe, particularly Germany, witnessed growth in this sector, North America struggled with an 18% decline as major customers scaled back their investments due to internal reorganizations stemming from industry consolidation. Europe maintained a positive outlook in Optical Transport.
Software and Services Growth
The Software and Services segment significantly boosted Ekinops' revenue, experiencing a substantial growth of 32% by the end of September 2025. This growth was propelled by the integration of Olfeo's services, which have since become crucial, representing 23% of the group's total business, a notable increase from 18% the previous fiscal year.
Market Trends by Region
The revenue performance in France was disappointing, recording a 14% decline largely due to the poor performance in Access solutions, while Optical transport managed a modest growth of 2%. It is important to note that Ekinops generated 43% of its total revenue in France by the end of September 2025.
Similarly, in North America, Ekinops faced a 14% decrease in revenue (-13% at constant exchange rates) as critical customers in the Optical transport segment curtailed their investment plans. Despite these challenges, Access solutions showed remarkable growth in North America, rising by 77% and accounting for 8% of the total revenue generated in this region.
In Europe, excluding France, sales remained nearly flat (-2%), with challenges in Access solutions being counterbalanced by growth in Optical transport technology, particularly in Germany. The European market contributed to 33% of Ekinops' business during this reporting period.
In the Rest of the World, which accounted for 6% of the Group’s activity, nine-month revenue increased by 10%, driven largely by developments in Optical transport solutions in regions like Africa and the Middle East.
Leadership Evolution at Ekinops
In an important development, Ekinops announced the resignation of Didier Brédy as Chairman and Chief Executive Officer. Philippe Moulin, who currently serves as the Chief Operating Officer, has been appointed as the interim CEO to ensure operational continuity while the board conducts a search for a permanent CEO. Moulin's extensive experience in the telecommunications industry, particularly his tenure at OneAccess, positions him well to lead the company during this transitional phase.
Additionally, Hugues Lepic, the CEO of Aleph Capital and a Board member, has stepped in as interim Chairman of the Board. The Board will be reviewing its composition in the coming months to enhance its strategic leadership.
The management expressed gratitude towards Didier Brédy for his pivotal role and contributions to the company's evolution and growth since 2005. Under Moulin’s guidance, Ekinops is set to continue its strategic initiatives focused on innovation and expanded market presence, as outlined in their "Bridge" strategic plan.
Future Outlook
Looking ahead, while the telecommunications market is expected to gradually recover through advancements in applications such as AI and Cloud, Ekinops foresees challenging conditions due to a complex geopolitical and economic climate. Notably, the company has adjusted its revenue target for FY 2025, anticipating not meeting the goal of 110 to 120 million euros.
For the remainder of FY 2025, Ekinops aims to achieve sequential growth by the fourth quarter, in comparison to the third quarter, while enhancing efforts on cost management and resource allocation.
The company continues to pursue product development initiatives within the context of the "Bridge" strategic plan, which will focus on integrating cybersecurity solutions and data center interconnection to facilitate sustainable growth into 2026.
Frequently Asked Questions
What was Ekinops' revenue for Q3 2025?
Ekinops reported a revenue of 22.3 million euros for Q3 2025, marking a significant decline compared to the previous year.
Who has been appointed as the interim CEO of Ekinops?
Philippe Moulin has been appointed as interim CEO to lead the company amidst the ongoing transition.
How did the revenue performance vary across regions for Ekinops?
France and North America experienced revenue declines, while Europe showed stability with slight growth in Optical transport solutions.
What growth did Ekinops achieve in its Software & Services segment?
The Software & Services segment saw a remarkable growth of 32%, contributing significantly to overall revenue.
What are Ekinops' future projections for revenue?
The company estimates that it may not meet its revenue target of 110 to 120 million euros for 2025 due to current market conditions.
