Transcom Holding AB (publ): Fourth quarter report 2025

Q4 2025 highlights

• Revenue increased to €194.9M (€193.0)

• EBITDA excluding non-recurring items increased to €35.1M (€29.2)

• EBITDA margin excluding non-recurring items increased to 18.0% (15.1%)

• Operating cash flow increased to €18.1M (€8.9)

• Net debt/EBITDA was 3.3 (4.1)

Jan-Dec 2025

• Revenue decreased to €742.7M (€744.6)

• EBITDA excluding non-recurring items increased to €99.9M (€91.8)

• EBITDA margin excluding non-recurring items increased to 13.5% (12.3%)

• Operating cash flow increased to €71.9M (€55.6)

• Net debt/EBITDA was 3.3 (4.1)

Comments by the CEO: Strong Finish to 2025 Driven by Offshore Strategy and Digital Transformation 

2025 was a pivotal year for Transcom and I am incredibly proud of how our global team has delivered against our transformational strategies. Revenue in the fourth quarter increased to €194.9 million (€193.0), representing 2.9% organic growth. This was supported by a turnaround in our European segment, which returned to growth in the quarter. Our English-speaking segment continued its exceptional performance, serving as the primary engine for expansion as our momentum continues to build on the US market. Revenue in our English-speaking segment was driven by high demand in the Philippines, India, and Egypt, supported by expansions of our world-class sites. By adding substantial new capacity in these high-margin regions during 2025, with more to come in 2026, we are ensuring we have the talent and capacity to continue to deliver against the growing demand. 

The most significant highlight of the quarter was our margin expansion. EBITDA, excluding non-recurring items, increased to €35.1 million (€29.2), with an EBITDA margin of 18.0%, up from 15.1% in the same period last year. This exceptional improvement is a direct result of our great new client wins, our continuing growth offshore, continued automation, AI usage and efficiency gains coupled with our cost-optimization programs that delivered the targeted results. The English segment achieved an EBITDA margin of 26.0% (21.0%). Meanwhile, the European segment showed continued growth and an improved EBITDA margin of 14.5% (12.6%). Additionally, our operating cash flow more than doubled to €18.1 million (€8.9), further strengthening our financial position. 

Transcom’s commitment to AI-driven and digitally enabled solutions remains central to our competitive advantage. We continue to strengthen our integration of advanced AI and digital technologies as pivotal enablers of our success both in our client solutions and internal ways of working. AI is amplifying the outcomes we produce, allowing us to further improve customer and client satisfaction while simultaneously reducing our operating costs. We are seeing excellent traction in AI solutions with clear use cases, most notably in the areas of language and translation as well analytics and insights that have allowed us to deliver tangible value for our clients. We remain the trusted partner of choice for small and mid-sized enterprises, delivering AI-enabled, future-proof customer experience outsourcing solutions. 

During 2025, Transcom focused on a strategic transition that traded marginal revenue declines for significantly enhanced profitability and a stronger cash position. Total revenue for the full year 2025 was €742.7 million compared to €744.6 million in 2024. Comparable organic growth was 1.2% when excluding the revenue in 2024 relating to the two unprofitable Transcom German entities we exited during the year. eCommerce & Tech sector remains our largest sector, accounting for 46% of total revenue over the last twelve months. It should be noted that the Healthcare vertical within our Services sector continues to grow rapidly in line with our vertical expansion strategy.  

Our profitability saw substantial improvement in 2025, as expected. EBITDA excluding non-recurring items rose to €99.9 million for 2025 from €91.8 million in 2024. This resulted in an EBITDA margin improvement, and we reached 13.5% for the full year. This was driven by great new client wins, continued automation and AI usage, our mix-shift toward offshore delivery, efficiency gains with an optimized overhead and site capacity. 

The company's financial health was further strengthened by a robust operating cash flow, which reached €71.9 million in 2025 compared to €55.6 million the previous year. This 29% increase in cash generation supported a major improvement in the company's leverage profile. By the end of 2025, the Net debt/EBITDA ratio dropped to 3.3, down from 4.1 in 2024. This deleveraging was also aided by a successful bond exchange in December 2025, which was a significant milestone for Transcom. The Senior Secured Floating Rate Credit Facility (SSFRCF) of €380 million with a final maturity in December 2026 was exchanged and a new bond issuance due in 2030 extended the company's maturity profile. This transaction also included a €50 million shareholder contribution. With over 90% participation, we issued €322.3 million in New Notes due 2030. Our Revolving Credit Facility was also extended from June 2026 to July 2029. This transaction significantly alters our debt profile and provides the long-term stability needed to continue our growth trajectory.  

I would like to extend my deepest appreciation to our global team for their unwavering dedication and hard work throughout this transformational year. Their efforts have been instrumental in delivering these results. I also thank our clients for their continued trust in Transcom as their partner of choice in an ever-evolving CX landscape. 

We enter 2026 with a strong sales momentum, a more optimized operational footprint and operating model, and a secure financial foundation. We remain confident in our strategy and ability to continue delivering superior value to our stakeholders. With an expanded sales force and a pipeline significantly larger than last year, we are well-positioned to maintain our trajectory of profitable growth. 

Brian Johnson, President & CEO

Earnings call

Transcom will host a webcast at 10:00 AM CET on February 19, 2026. The webcast will be held in English. The presentation will be available on https://transcom.com/about-us/investor-relations.

Presentation details

Date/Time: Thursday, February 19, 10:00 AM CET

Online Registration link: https://app.livestorm.co/transcom-holding/transcom-holding-ab-q4-2025-results-presentation

Important note: Please register via the link above at least 5-10 minutes prior the webcast in order to obtain the webcast link. If you register in advance, you will be sent an email reminder an hour prior to the webcast.

For further information, please contact

Cecilia Bergendahl, CFO
Email: cecilia.bergendahl@transcom.com

About Transcom

Transcom provides AI and digitally enhanced customer experience (CX) services to some of the world's most ambitious brands. More than 300 clients globally, including disruptive e-commerce players, category redefining fintechs, and technology legends rely on us for on-, off-, and nearshoring services. Transcom’s over 30,000 employees work in over 80+ contact centers and work-at-home networks across 29 countries, creating brilliant experiences in customer care, sales, content moderation and backoffice services. We help our clients drive their brands forward, customer satisfaction up and operating costs down. For more information, visit www.transcom.com.