GuruFocus News
3 min read
This article first appeared on GuruFocus.
Release Date: October 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
-
Exasol AG (XTER:EXL) reported a 9% increase in revenue year-to-date, reaching 31.7 million.
-
The company's EBITDA improved significantly, standing at 3 million at the end of Q3, compared to 1 million last year.
-
Focus verticals showed strong performance with a 24% year-on-year ARR growth, now representing almost 70% of overall ARR.
-
Exasol AG (XTER:EXL) has formed a promising OEM partnership with MariaDB, expected to provide a platform for growth.
-
The company maintains strong profitability and liquidity, with expectations to hit the upper end of their EBITDA guidance for the year.
-
ARR declined by 4% compared to the end of Q3 last year, primarily due to higher than expected churn in non-focus verticals.
-
Sales initiatives in focus industries have ramped up slower than anticipated, delaying expected growth impacts to 2026.
-
The company experienced a 25% churn rate over the past 12 months, with significant churn from two major retail customers.
-
New customer initiatives have not yet fully unfolded their potential, impacting current growth momentum.
-
Revenue growth is expected to be muted in 2026 due to the delayed impact of ARR growth.
-
Warning! GuruFocus has detected 5 Warning Sign with XTER:EXL.
-
Is XTER:EXL fairly valued? Test your thesis with our free DCF calculator.
Q: What are the key financial highlights from Exasol AG's preliminary Q3 2025 results? A: CFO Jandek Hendrik reported that Exasol AG achieved a revenue of 31.7 million, marking a 9% increase over the previous year. The ARR stood at 39 million, down 4% from the end of Q3 last year. EBITDA was strong at 3 million, compared to 1 million the previous year. The focus vertical ARR grew by 24% year-on-year to 26.6 million, representing almost 70% of the overall ARR.
Q: How is Exasol AG addressing the higher-than-expected churn in non-focus verticals? A: CFO Jandek Hendrik explained that the elevated churn is primarily in non-focus verticals, with significant churn from two major retail customers. The company expects a significantly lower churn next year, as the elevated churn seen this year is a pull-forward effect. The focus is on transitioning to focus verticals, which are experiencing strong growth.
Q: Can you elaborate on the partnership with MariaDB and its expected impact? A: CEO Ja Tevis highlighted that the partnership with MariaDB is a true OEM partnership, providing access to a wide user base and increased visibility. MariaDB has a large enterprise customer base, including financial services, which aligns with Exasol's focus verticals. The partnership is expected to be a fundamental platform for growth, with significant investments from both sides.
