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Tecnotree Reports Sixth Consecutive Profitable Quarter with Strong Cash Flow and AI-Driven Growth Amid Global Expansion and Strategic Advancements

Tecnotree, a global leader in digital platforms and services for AI, 5G, and cloud-native technologies, has announced its Q3 2025 financial results, marking its sixth consecutive quarter of profitability and positive cash flow. The company reported year-to-date financial performance as of September 30, 2025, highlighting strong operational discipline and strategic execution. Padma Ravichander, CEO of Tecnotree, commented on the results, stating that the company’s year-to-date operating result increased by 15% compared to the same period last year, measured in constant currency. The company generated EUR 3.2 million in free cash flow during the quarter, continuing its streak of cash-positive operations. Ravichander emphasized that Tecnotree has fully transitioned from a turnaround story to a sustainable growth company. The company continues to invest in expanding its delivery capabilities in developed markets, particularly in Europe and the Americas. This includes strengthening local, high-skill talent and accelerating project execution to support long-term, recurring revenue growth and value creation. Despite a challenging market environment—where overall industry growth was negative in 2025—Tecnotree’s order book and constant currency revenue growth remain positive, signaling strong market demand. In Q3 2025, the company faced near-term profit margin pressures due to the weakening U.S. dollar and strategic cost investments ahead of upcoming contract wins. However, these investments are expected to drive future growth. Tecnotree’s AI-native digital platforms are gaining global traction. Strategic partnerships in Europe and the Americas have expanded its reach beyond traditional BSS (Business Support Systems), enabling Tier-1 telecom operators to modernize and monetize their networks more efficiently. Gartner upgraded Tecnotree’s position in its Magic Quadrant for AI in CSP Customer and Business Operations 2025 from “Niche Player” to “Visionary,” citing strong execution and innovation in its Tecnotree Moments and Sensa platforms. The integration of Agentic AI Chatbots enhances customer self-service by improving explainability, transparency, and contextual awareness, leading to higher revenue monetization. AI is now embedded across all products, not just added as a feature. Every module in the D-Stack includes built-in intelligence, marking Tecnotree’s shift from AI-enabled to AI-native BSS. This strategic focus has also earned recognition from IDC, which named Tecnotree a Major Player in Worldwide Customer Experience Platforms for Telecommunications 2025. Operational efficiency remains a priority. Tecnotree maintained capital expenditure at 11.9% of sales year-to-date—within guidance—and improved its Days Sales Outstanding (DSO) to 154 days, down from 175 in the first half of 2025, reflecting improved working capital management. Looking ahead, the company remains focused on converting backlog into cash, executing large-scale transformation programs across Europe, the Americas, and Africa, and sustaining operational improvements. Management reaffirmed its full-year 2025 guidance, expecting low-to-high single-digit net sales growth in constant currency, at least a 200 basis point expansion in operating result margin, and free cash flow exceeding EUR 4 million. Ravichander expressed gratitude to employees, customers, and shareholders for their continued support as Tecnotree advances the next phase of its strategy. Tecnotree is a 5G-ready digital BSS provider with AI/ML capabilities and multi-cloud extensibility. It leads the TM Forum Open API Conformance with 59 certified Open APIs, including 9 real-world open APIs. Its agile, open-source D-Stack covers the full order-to-cash lifecycle and subscription management for telecom and digital services. The company also offers Fintech and B2B2X multi-experience digital marketplaces through its Tecnotree Moments platform, serving communities in gaming, health, education, OTT, and other verticals. Tecnotree is listed on the Helsinki Nasdaq (TEM1V). For more information, visit www.tecnotree.com.

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