HPS Reports Strong 2025 Growth, Targeting Profitable Expansion in 2026

HPS has announced its financial results for the year ending December 31, 2025, showcasing a year of significant transformation and growth. The company recorded consolidated revenue of 1.551 billion Moroccan Dirhams (MAD), representing a 22.3% increase compared to 2024 and exceeding the annual target of +20% growth. This growth was partly driven by the full-year integration of CR2, which was consolidated for only four months in 2024. On a like-for-like basis (pro forma), revenue growth was 6.5%, and on a like-for-like and constant currency basis, it reached +10.7%, reflecting the Group's true performance.

A Clear Inflection Point in H2 2025

The inflection point materialized clearly in the second half of 2025. EBITDA stood at 69.9 million MAD in the first half (margin of 10.4%), affected by SaaS transition costs and exceptional exchange rate effects. In the second half, EBITDA reached approximately 216 million MAD, representing a margin of about 25%, a three-fold increase. This strong progression illustrates the operational leverage of existing platforms, translating into margin expansion.

This inflection is driven by the acceleration of the SaaS model, now at the heart of the Group's dynamics. SaaS revenues grew +32.7% to 296 million MAD (on a like-for-like and constant currency basis) and became, for the first time, the leading revenue line of the Payment business. With a CAGR of nearly 20% since 2021 and an estimated run-rate of 480 million MAD by 2027 based on existing contracts alone, the impacts of the transition are nearly behind us, with additional revenues being generated with limited incremental costs.

For the full year, EBITDA reached 286 million MAD, up +30.0%, with a margin of 18.4% compared to 17.3% in 2024, and 18.8% on a like-for-like and constant currency basis.

Confirmation of Strategic Priorities Execution

These results confirm the successful execution of the strategic priorities of the AccelR8 plan:

• Rise of the recurring model: Regular and recurring revenues reached 1.120 billion MAD (+23.8%), representing 72.3% of consolidated revenue, confirming the improvement in revenue quality and visibility.
• Value-creating external growth: The full-year integration of CR2 strengthened the Group's offering, broadened its functional coverage, and contributed to the gradual improvement of the profitability profile.
• Success with Tier 1 institutions: HPS signed two major contracts with global Tier 1 banks in Asia, each representing several tens of millions of dollars, and increased the Backlog to a record level of 1,672 million MAD (+89%).
• Strengthening of the international platform: Operational expansion in North America, India, and Australia accelerates project deployment and brings the Group closer to its strategic markets.

Activity Performance

Payment: 1.329 billion MAD (+26.6%) | 1.389 billion MAD on a constant currency and like-for-like basis (+12.2%) The Payment business, which represents 89% of the Group's revenue, recorded an underlying growth of +12.2%. This performance reflects:

• Acceleration of major projects with Tier 1 institutions;
• Rise of SaaS (+32.7%), now the main growth driver;
• Growth in maintenance revenues. Underlying growth remains solid and increasingly driven by recurring revenues.

Strengthening Profitability and Financial Profile

The improvement in profitability is confirmed across all key indicators:

• EBITDA: 286 million MAD (+30.0%), operating margin of 18.4% compared to 17.3% in 2024. This performance confirms the Group's entry into a margin expansion phase, driven by the rise of the SaaS model and operational leverage.
• Operating income: 220 million MAD (+43.1%), operating margin of 14.2% compared to 12.1% in 2024.
• Net income (Group share): 106 million MAD (+40.5%), net margin of 6.8%.

Strong Cash Generation and Significant Deleveraging

The Group recorded a strong improvement in cash generation:

• Operating cash flow: 239 million MAD (4.9x compared to 49 million MAD in 2024);
• Net debt: 196 million MAD, a reduction of -42.4% (compared to 341 million MAD in 2024);
• Cash at the end of the period: 256 million MAD (+25.4%).

HPS now has a significantly strengthened financial structure, allowing it to support its future growth while continuing the deleveraging engaged after the external growth operations.

Record Backlog and Strengthened Visibility

The Backlog reached 1,672 million MAD at the end of December 2025, up +88.9% compared to the end of 2024. This increase reflects the signing of structuring contracts with Tier 1 financial institutions, the development of the portfolio of multi-year SaaS contracts, and the commercial synergies from the rapprochement between PowerCARD and BankWorld (CR2). This record level offers strong visibility on the Group's future growth.

Research & Development Investments

R&D investments stood at 144 million MAD (-7.9%), reflecting a return to a more normative level after several years of structuring investments. Efforts remain focused on cloud, artificial intelligence, cybersecurity, and the integration of the PowerCARD and BankWorld platforms.

2026 Outlook: Entry into a Profitable Growth Phase

HPS is approaching 2026 with solid fundamentals, driven by a record Backlog, an expanding base of recurring revenues, and a SaaS model in ramp-up phase. The Group is entering a new phase of its development, characterized by:

• Continuation of the ramp-up of platforms deployed in 2024 and 2025;
• Progressive conversion of the Backlog into revenues and cash flow;
• Continuation of the integration of CR2 and development of synergies between payment and digital banking;
• Acceleration of innovation in cloud, AI, and open banking domains.

HPS thus intends to continue the transformation of its model towards more recurring, more visible, and more profitable growth, in line with the objectives of its AccelR8 strategic plan. The Group targets organic revenue growth between 12% and 17%, accompanied by an improvement in the EBITDA margin compared to 2025.

Dividend

For the 2025 financial year, the Board of Directors will propose to the Annual General Meeting the distribution of a dividend of 8 MAD per share, up 14.2% compared to 2024.