Sparks - JDC Group

JDC’s Q425 revenues came in at €74.0m, compared to €62.7m in Q424, an increase of 18.1% y-o-y and 34% q-o-q. This was driven by strong growth of the platform advisortech business (+20.2%), partly due to the consolidation of FMK (since September), offset by somewhat lower growth at the advisory business (+9.0%). Q425 was the first quarter in which the company generated more than €70m in revenues. FY25 revenues were €249.9m, somewhat below the €260–280m guided range.

EBITDA margin developed much better than guided (10.0%), reaching 11.6%, which we believe was also driven by the strong contribution of FMK, compared with 9.4% in Q424 and 6.4% in Q3. As a result, full year EBITDA was €20.6m, in line with guidance (at the lower end of €20.5–22.5m). Operating leverage meant that net profit before minorities (+99%) increased faster than EBIT (+50.0%) and EBITDA (+35.9%).

For FY26 JDC specified EBITDA guidance of €35–38m (earlier guidance was for >€35m), which implies 77% growth at the midpoint compared to FY25, a large step up. EBITDA growth will, for the large part, be driven by the addition of FMK, but platform growth is also expected to comfortably lead to double-digit figures. Revenues are expected to come in at €300–330m.

JDC is convinced that AI will drive the biggest transformation in the insurance industry since the rise of the internet. The company believes it is in pole position to benefit from this change, as leveraging AI opportunities depends fundamentally on strong data quality and a modern processing infrastructure, which JDC has, particularly through its Morgen&Morgen and FMK units.