Technology

Clarivate Reports Third Quarter 2024 Results

Published

2 years ago

November 6, 2024

LONDON, Nov. 6, 2024 /PRNewswire/ — Clarivate Plc (NYSE: CLVT) (the “Company” or “Clarivate”), a leading global provider of transformative intelligence, today reported results for the third quarter ended September 30, 2024.

Third Quarter 2024 Financial Highlights

Revenues of $622.2 million decreased 3.9%Organic revenues decreased 2.6%, as an increase in subscription revenues of 0.6% was offset by a decrease in re-occurring revenues of 1.1% and transactional and other revenues of 13.6%Net loss of $65.6 million; Net loss per diluted share of $0.09Adjusted net income(1) of $134.1 million decreased 12.1%; Adjusted diluted EPS(1) of $0.19 decreased 9.5% or $0.02Adjusted EBITDA(1) of $264.4 million decreased 6.0%; Adjusted EBITDA margin(1) of 42.5% decreased 100 basis points primarily due to lower revenuesNet cash provided by operating activities of $202.9 million increased $39.5 million; Free cash flow(1) of $126.3 million increased $24.6 million primarily due to the timing of working capital

Nine Months Ended September 30, 2024 Financial Highlights

Revenues of $1,893.7 million decreased 2.6%Organic revenues decreased 1.5% as an increase in subscription revenues of 1.2% was offset by a decline in re-occurring revenues of 2.3% and transactional and other revenues of 9.3%Net loss of $444.9 million; Net loss per diluted share of $0.69Adjusted net income(1) of $379.8 million decreased 12.8%; Adjusted diluted EPS(1) of $0.52 decreased 11.9% or $0.07Adjusted EBITDA(1) of $775.1 million decreased 5.4%; Adjusted EBITDA margin(1) of 40.9% decreased 120 basis points primarily due to lower revenuesNet cash provided by operating activities decreased $48.0 million to $505.3 million; Free cash flow(1) decreased $76.3 million to $298.4 million primarily due to lower operating income and increased capital expenditures

“Clarivate’s third quarter results are unsatisfactory and reflect an overdependency on fluctuating transactional revenue and areas of the business with low margin characteristics,” said Matti Shem Tov, Chief Executive Officer. “As we look ahead, it is clear the Company has work to do to improve performance. Our Value Creation Plan is designed to increase subscription and re-occurring revenue, improve sales execution, accelerate innovation and continue portfolio solutions rationalization. We will leverage Clarivate’s strong foundation, unique product offerings and talented team to take the necessary actions to improve predictability and drive profitable growth. Alongside the management team and Board, I am invigorated by the opportunities before us and remain focused on successfully executing our strategy to realize Clarivate’s potential.”

Removal of Outlook

As a result of the recent CEO transition and the work being done under the Value Creation Plan, the Company has removed its forward-looking outlook for 2024. All previous outlooks provided by the Company should no longer be relied upon.

Selected Financial Information

Three Months Ended

September 30,

Change

Nine Months Ended
September 30,

Change

(in millions, except percentages and per share data), (unaudited)

2024

2023

2024

2023

Revenues

$ 622.2

$ 647.2

$ (25.0)

(3.9) %

$ 1,893.7

$ 1,945.1

$ (51.4)

(2.6) %

Net income (loss)

$ (65.6)

$ 12.3

$ (77.9)

N/M

$ (444.9)

$ (67.3)

$ (377.6)

N/M

Diluted EPS

$ (0.09)

$ (0.01)

$ (0.08)

N/M

$ (0.69)

$ (0.18)

$ (0.51)

N/M

Weighted average ordinary shares, diluted

718.7

670.9

47.8

7.1 %

690.5

673.9

16.6

2.5 %

Adjusted EBITDA(1)

$ 264.4

$ 281.4

$ (17.0)

(6.0) %

$ 775.1

$ 819.0

$ (43.9)

(5.4) %

Adjusted net income(1)

$ 134.1

$ 152.6

$ (18.5)

(12.1) %

$ 379.8

$ 435.7

$ (55.9)

(12.8) %

Adjusted diluted EPS(1)

$ 0.19

$ 0.21

$ (0.02)

(9.5) %

$ 0.52

$ 0.59

$ (0.07)

(11.9) %

Adjusted weighted average ordinary shares, diluted(1)

723.5

731.4

(7.9)

(1.1) %

726.1

733.6

(7.5)

(1.0) %

Net cash provided by operating activities

$ 202.9

$ 163.4

$ 39.5

24.2 %

$ 505.3

$ 553.3

$ (48.0)

(8.7) %

Free cash flow(1)

$ 126.3

$ 101.7

$ 24.6

24.2 %

$ 298.4

$ 374.7

$ (76.3)

(20.4) %

Third Quarter 2024 Commentary

Revenues for the third quarter decreased $25.0 million, or 3.9%, to $622.2 million, primarily due to the divestiture of Valipat in April 2024 and lower transactional sales across all three segments. Organic revenues decreased $16.5 million or 2.6%.

Subscription revenues for the third quarter increased $3.0 million, or 0.7%, to $411.1 million. Organic subscription revenues increased 0.6%, driven by price increases, partially offset by lower net volume in IP and LS&H.

Re-occurring revenues for the third quarter decreased $0.1 million, or 0.1%, to $106.7 million. Organic re-occurring revenues decreased 1.1%, primarily due to lower IP patent renewal volume.

Transactional and other revenues for the third quarter decreased $27.9 million, or 21.1%, to $104.4 million. Organic transactional and other revenues decreased 13.6%, due to lower sales across all three segments.

Balance Sheet and Cash Flow

As of September 30, 2024, cash and cash equivalents of $388.5 million increased $17.8 million compared to December 31, 2023.

The Company’s total debt outstanding as of September 30, 2024 was $4,711.5 million, a decrease of $58.8 million compared to December 31, 2023, driven by an accelerated debt repayment.

Net cash provided by operating activities of $505.3 million for the nine months ended September 30, 2024 decreased $48.0 million compared to the prior year period, primarily due to lower operating results, partially offset by timing differences in working capital. Free cash flow(1) for the nine months ended September 30, 2024 was $298.4 million, a decrease of $76.3 million compared to the prior year period.

Notes to press release

(1) Non-GAAP measure. Please see “Reconciliations to Certain Non-GAAP Measures” in this release for important disclosures and reconciliations of these financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release.

N/M – Represents a change approximately equal or in excess of 100% or not meaningful.

Conference Call and Webcast

Clarivate will host a conference call and webcast today to review the results for the third quarter at 9:00 a.m. Eastern Time. The webcast is open to all interested parties and may include forward-looking information.

The live webcast of the earnings call will be accessible through the investor relations section of the Company’s website. To join the webcast please visit https://events.q4inc.com/attendee/495058600.

Interested parties may access the live audio broadcast. U.S. participants may call 800-715-9871; international participants may call +1 646-307-1963 (long-distance charges will apply). The conference ID number is 5907538.

A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion of the live call and will remain available for one year.

Use of Non-GAAP Financial Measures

Non-GAAP results are financial measures that are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and are presented only as a supplement to our financial statements based on GAAP. Non-GAAP financial information is provided to enhance the reader’s understanding of our financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP. They are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial measures or results of operations calculated or determined in accordance with GAAP.

We use non-GAAP measures in our operational and financial decision-making. We believe that such measures allow us to focus on what we deem to be a more reliable indicator of ongoing operating performance and our ability to generate cash flow from operations, and we also believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of GAAP financial disclosures. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Definitions and reconciliations of non-GAAP measures, such as Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted diluted EPS, and Free cash flow to the most directly comparable GAAP measures are provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that any projections and estimates will be realized in their entirety or at all.

Forward-Looking Statements

This communication includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements” within the meaning of the “safe harbor provisions” of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, anticipated cost savings, results of operations, financial condition, liquidity, prospects, growth, strategies, and the markets in which we operate. Such forward-looking statements are based on available current market material and management’s expectations, beliefs, and forecasts concerning future events impacting us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors of our annual report on Form 10-K. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.

About Clarivate

Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.

Condensed Consolidated Balance Sheets (Unaudited)

(In millions)

September 30,
2024

December 31,
2023

ASSETS

Current assets:

Cash and cash equivalents, including restricted cash

$ 388.5

$ 370.7

Accounts receivable, net

771.8

908.3

Prepaid expenses

97.7

88.5

Other current assets

81.1

68.0

Assets held for sale

—

26.7

Total current assets

1,339.1

1,462.2

Property and equipment, net

47.3

51.6

Other intangible assets, net

8,726.7

9,006.6

Goodwill

1,736.8

2,023.7

Other non-current assets

71.8

60.8

Deferred income taxes

50.8

46.7

Operating lease right-of-use assets

58.1

55.2

Total assets

$ 12,030.6

$ 12,706.8

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 126.5

$ 144.1

Accrued compensation

111.7

126.5

Accrued expenses and other current liabilities

375.1

315.2

Current portion of deferred revenues

890.2

983.1

Current portion of operating lease liability

22.1

24.4

Liabilities held for sale

—

6.7

Total current liabilities

1,525.6

1,600.0

Long-term debt

4,632.5

4,721.1

Non-current portion of deferred revenues

21.6

38.7

Other non-current liabilities

52.5

41.9

Deferred income taxes

227.0

249.6

Operating lease liabilities

57.9

63.2

Total liabilities

6,517.1

6,714.5

Commitments and contingencies

Shareholders’ equity:

Preferred Shares, no par value; 14.4 shares authorized; 5.25% Mandatory Convertible Preferred Shares, Series A, zero and 14.4 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

—

1,392.6

Ordinary Shares, no par value; unlimited shares authorized; 710.3 and 666.1 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

13,069.0

11,740.5

Accumulated other comprehensive loss

(433.8)

(495.3)

Accumulated deficit

(7,121.7)

(6,645.5)

Total shareholders’ equity

5,513.5

5,992.3

Total liabilities and shareholders’ equity

$ 12,030.6

$ 12,706.8

Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

(In millions, except per share data)

2024

2023

2024

2023

Revenues

$ 622.2

$ 647.2

$ 1,893.7

$ 1,945.1

Operating expenses:

Cost of revenues

210.1

220.6

641.5

674.8

Selling, general and administrative costs

169.7

171.9

546.8

559.3

Depreciation and amortization

177.2

176.8

541.0

527.5

Goodwill and intangible asset impairments

13.8

—

316.6

135.2

Restructuring and other impairments

4.0

3.7

14.2

25.3

Other operating expense (income), net

25.7

(13.0)

46.9

(30.5)

Total operating expenses

600.5

560.0

2,107.0

1,891.6

Income (loss) from operations

21.7

87.2

(213.3)

53.5

Fair value adjustment of warrants

—

(12.6)

(5.2)

(14.4)

Interest expense, net

72.2

71.9

213.5

218.5

Income (loss) before income taxes

(50.5)

27.9

(421.6)

(150.6)

Provision (benefit) for income taxes

15.1

15.6

23.3

(83.3)

Net income (loss)

(65.6)

12.3

(444.9)

(67.3)

Dividends on preferred shares

—

18.9

31.3

56.3

Net income (loss) attributable to ordinary shares

$ (65.6)

$ (6.6)

$ (476.2)

$ (123.6)

Per share:

Basic

$ (0.09)

$ (0.01)

$ (0.69)

$ (0.18)

Diluted

$ (0.09)

$ (0.01)

$ (0.69)

$ (0.18)

Weighted average shares used to compute earnings per share:

Basic

718.7

670.9

690.5

673.9

Diluted

718.7

670.9

690.5

673.9

Condensed Consolidated Statements of Cash Flows (Unaudited)

Nine Months Ended September 30,

(In millions)

2024

2023

Cash Flows From Operating Activities

Net income (loss)

$ (444.9)

$ (67.3)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

541.0

527.5

Share-based compensation

48.9

97.1

Restructuring and other impairments, including goodwill

314.5

138.9

Gain on legal settlement

—

(49.4)

Deferred income taxes

(28.8)

(51.3)

Amortization of debt issuance costs

11.1

12.9

Other operating activities

36.1

2.4

Changes in operating assets and liabilities:

Accounts receivable

148.2

110.3

Prepaid expenses

(8.5)

(10.6)

Other assets

(9.8)

19.5

Accounts payable

(16.5)

(2.4)

Accrued expenses and other current liabilities

22.1

(33.8)

Deferred revenues

(102.3)

(56.9)

Operating leases, net

(7.8)

(6.2)

Other liabilities

2.0

(77.4)

Net cash provided by operating activities

505.3

553.3

Cash Flows From Investing Activities

Capital expenditures

(206.9)

(178.6)

Payments for acquisitions, net of cash acquired

(32.0)

(2.3)

Proceeds from divestitures, net of cash divested

(19.2)

10.5

Net cash provided by (used for) investing activities

(258.1)

(170.4)

Cash Flows From Financing Activities

Principal payments on term loans

(58.1)

(150.0)

Payment of debt issuance costs and discounts

(20.1)

0.1

Repurchases of ordinary shares

(100.0)

Cash dividends on preferred shares

(37.7)

(56.7)

Payments related to finance lease

(0.7)

(0.8)

Payments related to tax withholding for share-based compensation

(13.9)

(14.8)

Net cash provided by (used for) financing activities

(230.5)

(322.2)

Effects of exchange rates

1.1

(10.3)

Net change in cash and cash equivalents, including restricted cash

17.8

50.4

Cash and cash equivalents, including restricted cash, beginning of period

370.7

356.8

Cash and cash equivalents, including restricted cash, end of period

$ 388.5

$ 407.2

Supplemental Revenues Information

Annualized contract value (“ACV”) represents the annualized value for the next 12 months of subscription-based client license agreements, assuming that all expiring license agreements during that period are renewed at their current price level. Our ACV was $1,596.4 and $1,579.2 as of September 30, 2024 and 2023, respectively, which corresponds to an increase of 1.1%. The increase in ACV was primarily due to the impact of price increases, partially offset by volume declines.

The following tables present our revenues by type and by segment for the periods indicated, as well as the drivers of the variances between periods, including as a percentage of such revenues.

Three Months Ended
September 30,

Change

% of Change

(In millions, except percentages); (unaudited)

2024

2023

Acquisitions

Disposals

Organic

Subscription revenues

$ 411.1

$ 408.1

$ 3.0

0.7 %

0.2 %

— %

(0.1) %

0.6 %

Re-occurring revenues

106.7

106.8

(0.1)

(0.1) %

— %

1.0 %

(1.1) %

Transactional and other revenues

104.4

132.3

(27.9)

(21.1) %

0.5 %

(8.1) %

0.1 %

(13.6) %

Revenues

$ 622.2

$ 647.2

$ (25.0)

(3.9) %

0.2 %

(1.6) %

0.1 %

(2.6) %

Nine Months Ended
September 30,

Change

% of Change

(In millions, except percentages); (unaudited)

2024

2023

Acquisitions

Disposals

Organic

Subscription revenues

$ 1,219.8

$ 1,207.3

$ 12.5

1.0 %

0.1 %

— %

(0.3) %

1.2 %

Re-occurring revenues

317.8

325.5

(7.7)

(2.4) %

— %

(0.1) %

(2.3) %

Transactional and other revenues

356.1

412.3

(56.2)

(13.6) %

0.2 %

(4.5) %

— %

(9.3) %

Revenues

$ 1,893.7

$ 1,945.1

$ (51.4)

(2.6) %

0.1 %

(1.0) %

(0.2) %

(1.5) %

Three Months Ended
September 30,

Change

% of Change

(In millions, except percentages); (unaudited)

2024

2023

Acquisitions

Disposals

Organic

Academia & Government

$ 321.3

$ 327.2

$ (5.9)

(1.8) %

— %

(0.1) %

(1.7) %

Intellectual Property

199.8

211.7

(11.9)

(5.6) %

0.1 %

(4.6) %

0.7 %

(1.8) %

Life Sciences & Healthcare

101.1

108.3

(7.2)

(6.6) %

0.9 %

(0.7) %

(0.3) %

(6.5) %

Revenues

$ 622.2

$ 647.2

$ (25.0)

(3.9) %

0.2 %

(1.6) %

0.1 %

(2.6) %

Nine Months Ended
September 30,

Change

% of Change

(In millions, except percentages); (unaudited)

2024

2023

Acquisitions

Disposals

Organic

Academia & Government

$ 983.5

$ 983.9

$ (0.4)

— %

(0.1) %

0.1 %

Intellectual Property

602.3

637.1

(34.8)

(5.5) %

— %

(2.6) %

(0.2) %

(2.7) %

Life Sciences & Healthcare

307.9

324.1

(16.2)

(5.0) %

0.5 %

(0.6) %

(0.5) %

(4.4) %

Revenues

$ 1,893.7

$ 1,945.1

$ (51.4)

(2.6) %

0.1 %

(1.0) %

(0.2) %

(1.5) %

Reconciliations to Certain Non-GAAP Measures

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and amortization, and Interest expense, net, adjusted to exclude acquisition and/or disposal-related transaction costs, share-based compensation, restructuring expenses, impairments, the impact of certain non-cash fair value adjustments on financial instruments, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.

The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three and nine months ended September 30, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:

Three Months Ended
September 30,

Nine Months Ended
September 30,

(In millions, except percentages); (unaudited)

2024

2023

2024

2023

Net income (loss)

$ (65.6)

$ 12.3

$ (444.9)

$ (67.3)

Provision (benefit) for income taxes

15.1

15.6

23.3

(83.3)

Depreciation and amortization

177.2

176.8

541.0

527.5

Interest expense, net

72.2

71.9

213.5

218.5

Transaction related costs

6.1

2.7

13.6

5.1

Share-based compensation expense

15.4

25.4

49.7

97.1

Goodwill and intangible asset impairments

13.8

—

316.6

135.2

Restructuring and other impairments

4.0

3.7

14.2

25.3

Fair value adjustment of warrants

—

(12.6)

(5.2)

(14.4)

Other(1)

26.2

(14.4)

53.3

(24.7)

Adjusted EBITDA

$ 264.4

$ 281.4

$ 775.1

$ 819.0

Net income (loss) margin

(10.5) %

1.9 %

(23.5) %

(3.5) %

Adjusted EBITDA margin

42.5 %

43.5 %

40.9 %

42.1 %

(1) Primarily reflects the net impact of unrealized foreign currency gains and losses, as well as other items that do not reflect our ongoing operating performance. For the nine months ended September 30, 2024, the amount includes a $14.8 loss on divestiture and for the nine months ended September 30, 2023, the amount includes a $49.4 gain on legal settlement.

Adjusted net income and Adjusted diluted EPS

Adjusted net income represents Net income (loss), adjusted to exclude acquisition and/or disposal-related transaction costs, amortization related to acquired intangible assets, share-based compensation, restructuring expenses, impairments, the impact of certain non-cash fair value adjustments on financial instruments, unrealized foreign currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that we do not consider indicative of our ongoing operating performance and the associated income tax impact of such adjustments.

Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are dilutive.

The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the three and nine months ended September 30, 2024 and 2023 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:

Three Months Ended September 30,

2024

2023

(In millions, except per share amounts); (unaudited)

Amount

Per Share

Amount

Per Share

Net income (loss) and EPS

$ (65.6)

$ (0.09)

$ 12.3

$ 0.02

Transaction related costs

6.1

0.01

2.7

—

Share-based compensation expense

15.4

0.02

25.4

0.04

Amortization related to acquired intangible assets

138.7

0.19

141.9

0.21

Goodwill and intangible asset impairments

13.8

0.02

—

Restructuring and other impairments

4.0

0.01

3.7

0.01

Fair value adjustment of warrants

—

(12.6)

(0.02)

Other(1)

26.2

0.04

(14.4)

(0.04)

Income tax impact of related adjustments

(4.5)

(0.01)

(6.4)

(0.01)

Adjusted net income and Adjusted diluted EPS

$ 134.1

$ 0.19

$ 152.6

$ 0.21

Adjusted weighted average ordinary shares, diluted

723.5

731.4

(1) Primarily reflects the net impact of unrealized foreign currency gains and losses, as well as other items that do not reflect our ongoing operating performance.

Nine Months Ended September 30,

2024

2023

(In millions, except per share amounts); (unaudited)

Amount

Per Share

Amount

Per Share

Net income (loss) and EPS

$ (444.9)

$ (0.64)

$ (67.3)

$ (0.10)

Transaction related costs

13.6

0.02

5.1

0.01

Share-based compensation expense

49.7

0.07

97.1

0.14

Amortization related to acquired intangible assets

416.9

0.60

429.8

0.64

Goodwill and intangible asset impairments

316.6

0.46

135.2

0.20

Restructuring and other impairments

14.2

0.02

25.3

0.04

Fair value adjustment of warrants

(5.2)

(0.01)

(14.4)

(0.02)

Other(1)

53.3

0.05

(24.7)

(0.10)

Income tax impact of related adjustments

(34.4)

(0.05)

(150.4)

(0.22)

Adjusted net income and Adjusted diluted EPS

$ 379.8

$ 0.52

$ 435.7

$ 0.59

Adjusted weighted average ordinary shares, diluted

726.1

733.6

Free cash flow

Free cash flow represents Net cash provided by (used for) operating activities less Capital expenditures. The following table reconciles this non-GAAP measure to Net cash provided by operating activities:

Three Months Ended September 30,

Nine Months Ended September 30,

(In millions); (unaudited)

2024

2023

2024

2023

Net cash provided by operating activities

$ 202.9

$ 163.4

$ 505.3

$ 553.3

Capital expenditures

(76.6)

(61.7)

(206.9)

(178.6)

Free cash flow

$ 126.3

$ 101.7

$ 298.4

$ 374.7

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Technology

UPM Half Year Financial Report 2026: Improved second quarter results in all businesses and portfolio change progressing

Published

7 minutes ago

July 23, 2026

UPM-Kymmene Corporation Stock Exchange Release (Half Year Financial Report) July 23, 2026 at 09:30 EEST

HELSINKI, July 23, 2026 /PRNewswire/ —

UPM Half Year Financial Report 2026:
Improved second quarter results in all businesses and portfolio change progressing

Q2 2026 highlights, continuing operations

Sales totaled €2,355 million (2,341 million in Q2 2025)Comparable EBIT increased by 71% to €212 million, 9.0% of sales (124 million, 5.3%)All businesses improved their results from last yearUPM and Sappi signed a definitive agreement on the graphic paper Joint VentureThe Board approved a plan to demerge the Plywood business into a new listed company. The Extraordinary General Meeting to decide on the demerger plan will be held on August 31, 2026UPM achieved a Platinum rating from EcoVadis and an A score from CDP for its supplier engagement

H1 2026 highlights, continuing operations

Sales totaled €4,781 million (4,914 million in H1 2025)Comparable EBIT increased by 17% to €471 million, 9.8 % of sales (404 million, 8.2 %)Strong performance in Decarbonization solutions businesses (UPM Energy and UPM Biofuels)Robust sales growth and performance in Advanced materials businesses (UPM Adhesive Materials and UPM Specialty Materials)Operating cash flow was €225 million (468 million)1)The first installment of the dividend for the year 2025 was paid in April, totaling €395 millionNet debt was 3,313€ million at the end of June (3,310 million) and net debt to EBITDA ratio was 2.36 (2.12)1)

1) Operating cash, net debt and net debt to EBITDA ratio include continuing and discontinued operations.

UPM Plywood is presented as discontinued operations due to the proposed demerger

On April 29, 2026, the Board of Directors of UPM approved a demerger plan for the separation of the Plywood business into an independent listed company. As a result of the proposed demerger, the Plywood business is presented as a discontinued operation in accordance with IFRS 5. Unless otherwise stated, the commentary in this report relates to UPM’s continuing operations. More information in Financial statement information Note 10 assets and liabilities classified as held for distribution to owners and discontinued operations.

Key figures, continuing operations

Q2/2026

Q2/2025

Q1/2026

Q1-Q2/2026

Q1-Q2/2025

Q1-Q4/2025

Sales, € million

2,355

2,341

2,425

4,781

4,914

9,392

Comparable EBITDA, € million

356

250

375

732

659

1,254

% of sales

15.1

10.7

15.5

15.3

13.4

Operating profit (loss), € million

208

105

245

453

296

719

Comparable EBIT, € million

212

124

259

471

404

883

% of sales

9.0

5.3

10.7

9.8

8.2

9.4

Profit (loss) before tax, € million

182

226

409

249

660

Comparable profit before tax, € million

186

103

240

426

359

825

Profit (loss) for the period, € million

163

195

358

208

466

Comparable profit for the period, € million

163

203

366

305

684

Earnings per share (EPS), €

0.29

0.13

0.36

0.65

0.38

0.86

Comparable EPS, €

0.29

0.16

0.38

0.67

0.56

1.27

Return on capital employed (ROCE), %

5.9

3.2

7.2

6.6

4.2

5.4

Comparable ROCE, %

6.0

3.7

7.6

6.9

5.7

6.5

Capital employed at the end of period, € million

13,954

14,213

14,186

13,954

14,213

13,948

Personnel at the end of period

13,665

14,764

13,347

13,665

14,764

13,676

UPM presents certain measures of performance, financial position and cash flows, which are alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of alternative performance measures are presented in UPM’s » Annual Report 2025

Key figures, discontinued operations

The financial information presented for the discontinued operations is not representative of the historical or future profitability of the UPM Plywood business area as a standalone business. Information on UPM Plywood’s performance is presented in the segment information.

Q2/2026

Q2/2025

Q1/2026

Q1-Q2/2026

Q1-Q2/2025

Q1-Q4/2025

Sales, € million

164

132

264

Comparable EBITDA, € million

% of sales

23.3

11.9

24.8

24.0

14.8

21.5

Operating profit (loss), € million

Comparable EBIT, € million

% of sales

21.4

3.2

19.0

20.2

6.9

14.4

Profit (loss) before tax, € million

Comparable profit before tax, € million

Profit (loss) for the period, € million

Comparable profit for the period, € million

Return on capital employed (ROCE), %

21.7

3.9

22.0

21.9

9.8

16.4

Comparable ROCE, %

37.4

4.3

32.7

35.1

10.0

20.8

Capital employed at the end of period, € million

196

181

189

196

181

Personnel at the end of period

1,519

1,543

1,454

1,519

1,543

1,451

Key figures, UPM total

UPM total

Q2/2026

Q2/2025

Q1/2026

Q1-Q2/2026

Q1-Q2/2025

Q1-Q4/2025

Sales, € million

2,440

2,400

2,505

4,945

5,046

9,656

Comparable EBITDA, € million

376

257

395

771

678

1,311

% of sales

15.4

10.7

15.8

15.6

13.4

13.6

Operating profit (loss), € million

217

107

255

472

305

749

Comparable EBIT, € million

230

126

274

504

413

921

% of sales

9.4

5.2

10.9

10.2

8.2

9.5

Profit (loss) before tax, € million

186

236

422

258

690

Comparable profit before tax, € million

204

105

255

459

367

863

Profit (loss) for the period, € million

166

200

366

215

491

Comparable profit for the period, € million

177

213

390

312

714

Earnings per share (EPS), €

0.30

0.13

0.37

0.67

0.39

0.91

Comparable EPS, €

0.32

0.17

0.39

0.71

0.57

1.33

Return on equity (ROE), %

6.4

2.7

7.6

7.1

3.9

4.5

Comparable ROE, %

6.8

3.4

8.1

7.6

5.7

6.5

Return on capital employed (ROCE), %

6.1

3.2

7.4

6.8

4.3

5.5

Comparable ROCE, %

6.5

3.7

7.9

7.2

5.8

6.7

Operating cash flow, € million

136

179

225

468

1,405

Operating cash flow per share, €

0.26

0.34

0.17

0.43

0.88

2.66

Equity per share at the end of period, €

18.86

18.96

19.48

18.86

18.96

18.97

Capital employed at the end of period, € million

14,149

14,394

14,375

14,149

14,394

14,129

Net debt at the end of period, € million

3,313

3,310

2,962

3,313

3,310

3,004

Net debt to EBITDA (last 12 months)

2.36

2.12

2.30

2.36

2.12

2.29

Personnel at the end of period

15,184

16,307

14,801

15,184

16,307

15,127

Massimo Reynaudo, President and CEO, comments on the results:

“In the second quarter, we reached two important milestones in the transformation of UPM. We signed the definitive agreement to create the graphic paper joint venture with Sappi, and advanced the separation of the plywood business into the future WISA Group. Following these steps, UPM is positioned with stronger growth prospects and improved earnings quality.

During the quarter, all our businesses improved their results compared to the same period last year, with most also outperforming the previous quarter. Increased volumes, margin management and sustained efficiency measures supported our profitability in a business environment that turned inflationary.

In Q2, sales from our continuing operations were slightly up at €2,355 million, and comparable EBIT increased to €212 million, 71 percent higher than in the same period last year. Net debt at the end of the reporting period was €3,313 million, including both continuing and discontinued operations, and net debt to EBITDA ratio was 2.36.

In decarbonization solutions, UPM Biofuels recorded a strong quarter with good demand and healthy bio-premiums for advanced renewable fuels. Prices were further supported by higher fossil fuel reference prices. The ramp-up of our biorefinery in Leuna, Germany, continued. Customer deliveries of industrial sugars reached substantial volumes, and deliveries of renewable functional fillers and other lignin derivatives are expected to start during Q3. UPM Energy improved its results from last year, although the second quarter saw normal seasonality. Structurally, electricity consumption continued to grow year-on-year, and we are well positioned to create value by serving new large-scale consumers.

The markets for our advanced materials businesses, UPM Adhesive Materials and UPM Specialty Materials, showed robust growth in Europe and Asia. Both businesses succeeded in the markets, thanks to a focus on commercial excellence and product portfolio development, and sharpened competitiveness.

Our world-class pulp platform in Uruguay, UPM Fibres South, has consistently improved efficiency for several quarters in a row. In the second quarter, this helped us to fully offset the increases in logistics and other costs. Profitability was further improved by a moderate increase in pulp prices.

For the Fibres North platform in Finland, the business environment is challenging. Even though pulpwood prices have decreased, profitability remains low. The second quarter earnings were also impacted by the maintenance shutdown at the UPM Pietarsaari mill. We are planning temporary shutdowns of the UPM Kaukas pulp mill and potentially the UPM Pietarsaari pulp mill, to optimize production and wood sourcing, and ensure profitability.

UPM Communication Papers’ business performance was broadly stable, with slightly improved margins. Preparations for the planned graphic paper Joint Venture continued. In late May we signed the definitive agreement with Sappi, and secured financing arrangements for the Joint Venture. The EU merger control process moved to Phase II, with final resolutions expected by the end of 2026.

UPM Plywood continued to perform well as the business prepared for separation into an independent listed company, WISA Group. In April, the Board of Directors approved the demerger plan. Subject to the decision of the Extraordinary General Meeting, trading in the shares of WISA Group on Nasdaq Helsinki is currently expected to commence in early November. By separating the plywood business onto its own growth path, we are strengthening its future prospects and streamlining UPM’s business portfolio.

Following the planned graphic paper joint venture and plywood separation, UPM operates in structurally growing markets. The ongoing reshaping of UPM’s portfolio highlights our position in businesses with stronger growth characteristics, and our direction going forward is towards higher value-added products and lower cyclicality.”

Profit guidance, continuing operations

UPM’s comparable EBIT in H2 2026 from continuing operations is expected to be approximately in the range of €375-575 million (€479 million in H2 2025, and €471 million in H1 2026). These figures exclude UPM Plywood, which is classified as discontinued operations.

Outlook

There continue to be significant uncertainties in geopolitics and trade.

In H2 2026, compared with H1 2026, UPM’s performance is expected to be supported by moderately higher sales prices. Variable costs are expected to increase moderately. Energy refunds are expected to support UPM Communication Papers’ result in Q4. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.

In H2 2026, compared with H2 2025, UPM’s performance is expected to benefit from higher sales prices. Variable costs are expected to increase moderately. Fair value change of forest assets is expected to have a significantly smaller impact on comparable EBIT in H2 2026 than in H2 2025 (€131 million). The energy refunds to be booked in UPM Communication Papers in Q4 are anticipated to have a somewhat smaller positive impact than in 2025. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.

Sensitivity to pulp and electricity prices

UPM’s comparable EBIT is sensitive to pulp and electricity prices. The figures below represent group earnings sensitivities on annual level.

UPM is a large producer and consumer of chemical pulp. A €50/tonne change in average pulp price would impact annual comparable EBIT by approximately €180 million (net impact: assuming no correlation between pulp and paper prices) to approximately €270 million (gross impact: assuming paper pricing would match changes in pulp costs).

UPM is a large producer and consumer of electricity in Finland and separately hedges part of its electricity sales and purchases. Based on UPM’s estimated unhedged net electricity sales position in Finland in 2026, a €10/MWh change in average electricity market price in Finland would impact annual comparable EBIT by approximately €40 million.

Foreign exchange exposure

Fluctuations in monetary policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions could influence currency exchange rates. These currency fluctuations could impact UPM’s cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.

The Group’s policy is to hedge an average of 50% of its estimated net currency cash flows on a rolling basis over the next 12-month period. At the end of Q2 2026, UPM’s estimated net currency cash flows for the next 12 months totaled approximately €1.5 billion. USD was the largest exposure at approximately €1.4 billion, followed by UYU, GBP, CNY and JPY. In addition, the earnings of UPM’s foreign subsidiaries are translated to euros in reporting. UPM has significant foreign subsidiaries in Uruguay, the U.S. and China. Foreign exchange risks are discussed in UPM’s Annual Report 2025 on pages 313-314.

Invitation to UPM’s webcast on the half-year financial report 2026

A webcast and a conference call for analysts and investors will start at 13:15 EEST. The 2026 half-year financial report will be presented in English by President and CEO Massimo Reynaudo and CFO Tapio Korpeinen. Participants can follow the webcast online via this link.

Participants wishing to ask questions after the presentation must register for the conference call. To participate in the conference call, please register here. After registering, you will be provided with telephone numbers, a user ID and a conference ID to access the conference. To ask a question, press *5 on your telephone keypad to join the queue.

The webcast will be available on the company website for 12 months after the call.

It should be noted that certain statements herein, which are not historical facts, including, without limitation, those regarding expectations for market growth and developments; expectations for growth and profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements. Since these statements are based on current plans, estimates and projections, they involve risks and uncertainties which may cause actual results to materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as continued success of manufacturing activities and the achievement of efficiencies therein including the availability and cost of production inputs, continued success of product development, acceptance of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements, changes in business strategy or development plans or targets, changes in the degree of protection created by the Group’s patents and other intellectual property rights, the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for the Group’s products and the pricing pressures thereto, financial condition of the customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in the Group’s principal geographic markets or fluctuations in exchange and interest rates. The main earnings sensitivities and the group’s cost structure are presented on page 276 of the Annual Report 2025. Risks and opportunities are discussed on pages 31-33, and risks and risk management are presented on pages 128-132.

UPM, Media relations
Mon-Fri 9:00-16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM
UPM is a material solutions company, renewing products and entire value chains with an extensive portfolio of renewable fibres, advanced materials, decarbonization solutions, and communication papers. Our performance in sustainability has been recognized by third parties, including EcoVadis and the Dow Jones Sustainability Indices. We operate globally and employ approximately 15,100 people worldwide, with annual sales of approximately €9.7 billion. Our shares are listed on Nasdaq Helsinki Ltd.
UPM – we renew the everyday
Read more: upm.com

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Technology

Acrab Unveils GΞLIX 1 SoC and Agent Box, Bringing State-of-the-Art AI to the Edge

Published

7 minutes ago

July 23, 2026

Built on a 5-nanometer process, the new SoC is designed to support models in the 100 billion parameter class, with full-stack software for private and responsive AI agents at the edge

SINGAPORE, July 23, 2026 /PRNewswire/ — Acrab, a technology company building agentic AI compute infrastructure for the next generation of intelligent systems, today unveiled GΞLIX 1, its first-generation edge AI system-on-chip (SoC), together with Agent Box, a personal edge AI system powered by the company’s full-stack computing platform.

As AI moves from generating answers to completing tasks, agents increasingly need to understand context, remember preferences and coordinate tools and devices in real time. Running these capabilities locally can produce faster responses, keep sensitive information under the user’s control and maintain core functions when cloud connectivity is limited.

For years, models in the 100 billion parameter class have required cloud infrastructure. GΞLIX 1 is designed to bring state-of-the-art AI models at this scale into locally operated edge systems. Powered by GΞLIX, Acrab’s Agent Box is a high-performance personal edge AI center designed to put AI agents into action in a more personal and customized way, with local large model inference, persistent memory, multimodal interactions and agent orchestration capabilities.

By replacing cloud AI’s recurring token-fees per use, Agent Box is a one-time investment with long-term value, hence relieving users’ token anxiety, and allowing AI to move from an occasional tool into an always-available assistant woven into everyday work and life.

“Generative AI helped people find answers. Agentic AI will help them get things done,” said Dr. Ken Phua, CEO of Acrab. “Running models in the 100 billion parameter class on a system small enough to sit on a desk presents a significant computing challenge. GΞLIX 1 is designed to deliver the performance, memory bandwidth and responsive local inference required, while Agent Box shows how that capability can become a complete user experience.”

A private AI center built for everyday life

Agent Box is designed as a private, always-on AI center for personal workspaces and homes. It keeps intelligence close to the people, information and physical environments it serves, while showing how device makers can turn Acrab’s computing platform into complete agentic AI experiences.

For decades, personal computing advanced in predictable steps: faster processors, larger screens, more storage. Agent Box represents something else entirely—the first system designed not to run programs, but to host intelligence.

Agent Box brings together local language and vision model inference, multimodal interaction, persistent memory and an orchestration layer that can understand goals, break tasks into steps and coordinate action across agents, systems and connected devices. Users’ data and memories remain private and stored locally on the device, while the system grows more capable and customized as the context deepens and memories accumulate. Acrab designed the compute architecture from the ground up to achieve optimal local AI performance, usability, cost efficiency, and power efficiency within one device.

A purpose-designed SoC for large model inference at the edge

GΞLIX 1 is built on a 5-nanometer process and is Acrab’s first SoC designed specifically for edge AI. Rather than relying on separate compute components, it integrates CPU, GPU and NPU resources with a unified memory architecture engineered for large AI models and agentic workloads.

The SoC features a 20-core Arm CPU, multicore NPU acceleration and 273 GB/s of unified memory bandwidth. It is designed to support local deployment of open-source models in up to the 100 billion parameter class, with coordinated execution across CPU, GPU and NPU resources. Supporting models at this scale locally places substantial demands on computing performance, memory bandwidth and power efficiency.

GΞLIX 1 is engineered for rapid responses at power levels suitable for systems that remain active throughout the day. A central design goal was reducing the delay before a model begins to respond, particularly with long prompts and large context windows.

In company testing, GΞLIX 1 achieved a prefill rate of 1416.8 tokens per second under a Gemma 26B A4B configuration with a 40K KV cache and a 10K token input, compared with 188.9 tokens per second on Mac Mini M4 Pro, representing up to 7.5X faster prefill performance. These capabilities turn a single chip into a versatile supercomputing platform for a wide range of applications.

A full-stack platform, from silicon to applications

Beyond the SoC, Acrab has built the software and system layers needed to turn local model inference into working agentic products. These include an optimized runtime and developer toolchain, agent operating system capabilities, reference designs and applications that help devices understand context, retain memory and coordinate real-world action.

Agent Box is the first expression of Acrab’s broader ambition to provide a horizontal computing foundation for agentic AI across a wide range of edge devices and intelligent systems.

Processing a substantial share of AI workloads locally can reduce dependence on metered cloud inference, lower recurring processing and data transfer costs, and avoid the delay involved in sending every interaction to a remote service. Cloud resources can still be used when a task requires them, allowing developers to choose the right balance between local and cloud execution.

Building a broader edge AI device ecosystem

Acrab plans to work with device manufacturers and developers to bring its computing platform into products including AI NAS systems, AI PCs, smart vehicles, and industrial and service robots.

Agent Box demonstrates how Acrab’s silicon and software can be integrated into a complete product experience. The company aims to provide a complete set of compute platform and agent-native infrastructure for the next generation of AI transformation across industries. By combining custom AI silicon, full-stack software, and reference designs of agents for use scenarios, Acrab enables industry partners and developers to bring intelligent AI products to market faster.

“Our goal is to give device makers and developers the foundation to bring agentic intelligence into many different products and environments,” Dr. Phua said. “Agent Box demonstrates what the technology can do today, while GΞLIX 1 and our full-stack platform are designed to support a much broader ecosystem of devices and applications.”

Product Launch Event Video Replay:

https://www.acrab.ai/https://www.youtube.com/watch?v=WdojjwucdTQ https://www.linkedin.com/events/7484797078045401088/

About Acrab

Acrab is a technology company building agentic AI compute infrastructure for the next generation of intelligent systems. Founded in 2024, the company develops high-performance AI compute architecture and integrated software platforms designed to bring AI agents into action, providing personalized assistance and real-time execution across a range of edge environments.

By combining purpose-designed silicon, advanced edge AI models, full-stack software and system orchestration, Acrab provides the computing foundation for AI agent systems across everyday life, bringing assistance, creativity, utility and value.

In June 2026, Acrab announced that it had received over US$350 million in cumulative financing from global venture capital firms and strategic industry investors, including early backers Vertex Ventures Southeast Asia & India, Vertex Growth, and K3.

For more information about Acrab, please visit https://www.acrab.ai/.

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SOURCE Acrab

Technology

IDnow Appoints Philippe Morel as Chief Executive Officer

Published

7 minutes ago

July 23, 2026

Philippe Morel brings over 30 years of financial services and technology leadership experience, with a track record of scaling regulated platform businesses in partnership with private equity.

MUNICH, July 23, 2026 /PRNewswire/ — IDnow, Europe’s leader in digital identity and fraud prevention, today announces the appointment of Philippe Morel as Chief Executive Officer, effective today. Philippe succeeds Andreas Bodczek, who steps down after more than seven years of leadership that transformed IDnow into a leading European provider of digital identity and fraud prevention.

The IDnow Trust Platform: From KYC to Continuous Trust

In June 2026, IDnow launched the IDnow Trust Platform, marking the company’s expansion beyond traditional identity verification. Designed to help regulated organisations move from Know Your Customer (KYC) to Trust Your Customer (TYC), the platform orchestrates identity verification, fraud prevention, biometric authentication and qualified digital trust services across the full customer lifecycle. Through four modular services — Identify, Authenticate, Protect and Trust — and its Orchestrate, Observe and Decide capabilities, customers can configure workflows, monitor risk signals in real time and automate decisions through a single integration. The platform is built to help organisations adapt to the evolving European regulatory landscape, including AMLR, eIDAS 2.0 and the emergence of EU Digital Identity Wallets, while addressing increasingly sophisticated AI-driven fraud.

A New Chapter for IDnow

Philippe Morel brings more than 30 years of leadership experience spanning financial services, technology platforms and regulated environments, with a consistent track record of strategic transformation and value creation in partnership with private equity.

Most recently, Philippe served as Chief Executive Officer of Railsr, a payments and embedded finance platform, where he led strategic repositioning and commercial rebuilding before the merger with Equals Money.

Prior to that, Philippe served as CEO of SETL, a blockchain-based financial market infrastructure provider, where he repositioned the business into payments and digital settlement networks, launched the Regulated Liability Network (RLN) tested with the New York Federal Reserve, and delivered tokenisation projects for tier-one financial institutions.

Before his executive career, Philippe worked at Boston Consulting Group, rising to Senior Partner and Managing Director. He led BCG’s Global Capital Markets practice and its Private Equity EMEA business, advising boards and CEOs of major financial institutions on strategy, transformation, M&A and growth across Europe, the US and Asia. He also served for nine years as Chair of BCG’s Global Audit and Risk Committee.

Philippe holds an MBA from Harvard Business School and a degree in Finance from HEC Paris.

Board Statement

Martin McCourt, Chair of IDnow, said: “We are delighted to welcome Philippe to IDnow at a pivotal moment. IDnow has recently launched its Trust Platform, expanding beyond traditional identity verification to help regulated organisations orchestrate identity, fraud prevention and compliance across the full customer lifecycle. Philippe’s background — combining deep strategic expertise with hands-on leadership of regulated technology and financial services platforms — is ideally suited to the opportunity ahead. We are confident that he will lead IDnow into its next phase of growth.”

Philippe Morel Statement

“IDnow is a genuinely exceptional business — a European-born leader in digital identity and fraud prevention at a moment when regulation, digital identity wallets and increasingly sophisticated fraud are reshaping the market. The newly launched IDnow Trust Platform is designed to help customers move beyond one-time verification towards continuous trust across the full customer lifecycle. I am energised by what this team has achieved and by the opportunity ahead. My first priority is to listen: to our customers, our colleagues and our partners. From there, we will define and execute IDnow’s next phase of growth together.”

A Tribute to Andreas Bodczek

The Board also takes this opportunity to express its deep gratitude to Andreas Bodczek, who has led IDnow with extraordinary vision and commitment since 2018. A seasoned technology entrepreneur with a Diplom Kaufmann from LMU München, Andreas brought to IDnow the experience of building and scaling digital businesses: as co-founder and CEO of Fyber, which he grew into a globally recognised mobile technology platform, a board partner at Point Nine Capital, and chairman at JTL Software.

At IDnow, his impact was transformative. He led the company through a pivotal transition from founder-led to PE-backed under Corsair’s ownership, providing the foundation for sustained growth. He drove the acquisitions of identity Trust Management AG and ARIADNEXT — the French market leader in remote identity verification — which significantly expanded IDnow’s capabilities, brought the Rennes engineering hub into the group, and established IDnow’s presence across Europe. Most recently, he oversaw the launch of the IDnow Trust Platform, marking the company’s expansion beyond traditional identity verification and creating a unified platform for identity, fraud prevention, authentication and qualified digital trust services across the customer lifecycle. His leadership has positioned IDnow well for its next chapter, and we wish him every success in what comes next.

About IDnow

IDnow is Europe’s leader in digital identity and fraud prevention, with a mission to transform trust into a powerful asset in the digital world. Through its broad portfolio of AI-driven, SaaS-based identity and fraud prevention solutions, IDnow establishes, maintains and enriches trust throughout the customer journey, enabling businesses to operate securely while driving growth and scalability. The IDnow Trust Platform provides unified access to identity verification, fraud prevention, biometric authentication and qualified digital trust services. IDnow has offices in Germany, the United Kingdom, Romania and France and is backed by Corsair Capital.

For more information, visit idnow.io.

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SOURCE IDnow