Arctic Stream completes Q1 of 2025 with a turnover of 30.41 million lei

• The company’s revenues and profitability declined compared to the first half of 2024, amid the absence of significant outstanding projects from the previous year and slow approval of budgets by customers.
• For the first time, Arctic Stream reports results at a consolidated level, including holdings in Data Core Systems, Optimizor and Cyber ​​Arena, and the management team expresses confidence that, after strengthening operational cooperation, the collaboration will also be reflected in the financial results.
• Arctic Stream launches an offer to purchase its own shares (August 28) and invites interested parties to the “Investor Day” (October 09).

Arctic Stream, an IT infrastructure and security integrator and issuer listed on the Bucharest Stock Exchange (BVB) under the symbol AST, ended the first semester (H1) of 2025 with a turnover of 30.41 million lei (6.01 million euros), down 59% compared to H1 2024.

For the first time, the company also reports a loss of 2.58 million lei, caused both by the decrease in operating profit (minus 1.02 million lei) and by the revaluation of holdings in USD (the currency in which most solutions are purchased), down 1.55 million lei. The revaluation does not imply a cash loss, but is recorded in the accounting as a loss.

The below-expected results in the first two quarters come after a slow start to the year, without significant projects from the previous year, and are also influenced by the difficult economic context, in which client budgets were approved late. Especially in terms of public sector projects, amid pressures related to limiting the budget deficit, there is a limitation of investments from national funds.

Although the revenues recorded in the first half of the year are at 21% of the level anticipated in the company’s Revenue and Expenditure Budget (BVC), Arctic Stream is waiting for the evolution of the projects in the third quarter (Q3), to announce a possible operational update. Until then, the completion of some projects postponed from Q1 and Q2 is expected, and the company’s management will have a clearer picture of the achievements in relation to the estimates in the BVC.

“As we have already proposed and demonstrated, we are ready to present ourselves to investors and other stakeholders, even when the results do not meet our expectations. This is the case in the first half of this year, in which the company’s revenues and profits have declined, amid a more difficult market situation than we could have anticipated.

On the one hand, we have no significant projects from previous years whose completion is scheduled for early 2025, the approval of some customer investments has been postponed, and financing from national funds is being postponed, amid discussions on reducing the budget deficit. On the other hand, a revaluation of our holdings in US dollars has added another negative result, higher than the one recorded from the decrease in operating profit.

Moreover, it is too early to reflect, at the level of financial performance, Arctic Stream’s participations in Data Core Systems, Optimizor and Cyber ​​Arena. We are still in the process of consolidating interoperability between these companies, but I am convinced that all the strategic partnerships we have engaged in will yield results in the coming years. We will not be able to assess the financial impact of these partnerships before the first half of 2026. What we can say, however, is that Optimizor is performing according to our expectations, and the strategic partnership with Data Core Systems is materializing in strategic projects across the country’s borders.

I remain optimistic that, together with the new CEO of Arctic Stream, Florin Mărginean, and the other members of the company’s management, we will manage to overcome the recent challenges, and this will be known by returning to consistent profitability. Our efforts in the coming period will target the area of ​​on-premise AI infrastructures and capitalizing on the opportunity brought by non-reimbursable, European and local funds. Regardless of the current temporary slowdown in financing, the direction of economic development requires continued investments in digital transformation projects, which require well-configured and secured data infrastructures, based on the latest technologies”, said Dragoș Octavian Diaconu, Founder and Chairman of the Board of Directors, Arctic Stream.

Immediately after the publication of the financial report for H1 2025, on August 28, 2025, Arctic Stream received the approval of the Financial Supervisory Authority to launch a tender offer for its shares, at a price of 23 lei per share. The offer is brokered by the stock broker SSIF Estinvest SA.

On October 9, the company’s management expects shareholders and other interested parties to take part in the fourth edition of the “Arctic Stream Investor Day” event. Registration and participation details will be available in the Investors section of the company’s website and will be popularized in the media and social networks in the coming weeks.