Tecnotree Sustains Growth with Sixth Consecutive Quarter of Profit and Positive Cash Flow
Tecnotree, a global leader in digital platforms and services for AI, 5G, and cloud-native technologies, has announced its financial results for the third quarter of 2025, covering the year-to-date period ending September 30, 2025. The company continues to demonstrate strong operational discipline, reporting its sixth consecutive quarter of profitability and positive cash flow.
Strong Financial and Operational Performance
Commenting on the results, Padma Ravichander, CEO of Tecnotree, stated:“Tecnotree’s Q3 2025 results reflect our disciplined focus on profitable order book execution, with year-to-date operating results up 15% year on year in constant currency. Maintaining cash-positive operations for the sixth consecutive quarter, with EUR 3.2 million in free cash flow, demonstrates the strength of our strategy and operational discipline.”
Ravichander emphasized that Tecnotree’s transformation from a turnaround story to a growth-driven enterprise is now complete. The company’s focus on strengthening its delivery capabilities and expanding its global footprint in developed markets—particularly in Europe and the Americas—has laid the groundwork for sustainable growth. By investing in high-skill local talent and accelerating project delivery, Tecnotree is positioning itself for consistent recurring revenue and long-term value creation.
Navigating Near-Term Challenges with Strategic Investments
While the company benefited from cost optimization initiatives undertaken in the previous year, it also faced some short-term margin pressures. These challenges were driven by the weakening of the US dollar and strategic cost deployment ahead of upcoming contract wins. Despite these headwinds, Tecnotree maintained its positive trajectory, supported by a robust order book and constant-currency revenue growth—outperforming an overall market that has shown negative growth in 2025.
Ravichander added:“Our medium-term outlook remains positive. The strength of our order book and steady revenue growth reinforce our confidence in Tecnotree’s strategic direction. We are committed to operational efficiency, profitable growth, and innovation across all markets.”
AI-Native Platforms Driving Global Growth
Tecnotree’s continued success is underpinned by its expanding suite of AI-native digital platforms, which are gaining momentum worldwide. The company’s strategic partnerships in Europe and the Americas have broadened its reach beyond traditional Business Support Systems (BSS), enabling Tier-1 telecom operators to modernize and monetize networks more efficiently.
In the third quarter, Tecnotree achieved significant industry recognition. Gartner upgraded Tecnotree’s position in its Magic Quadrant for AI in CSP Customer and Business Operations 2025 from “Niche Player” to “Visionary.” This advancement was attributed to the company’s strong execution capabilities and innovation, particularly through its Tecnotree Moments and Tecnotree Sensa platforms.
These AI-driven solutions leverage Agentic AI Chatbots to enhance customer self-service, improving explainability, transparency, and contextual awareness—all of which contribute to greater revenue monetization for clients.
Ravichander explained:“AI is not something we simply add to our products—AI is our product. Every module within our D-Stack is infused with embedded intelligence, allowing us to move from AI-enabled to truly AI-native BSS platforms.”
This innovation focus was further validated when IDC recognized Tecnotree as a Major Player in its Worldwide Customer Experience Platforms for Telecommunications 2025 report.
Operational Discipline and Financial Efficiency
Tecnotree also demonstrated continued strength in financial management. The company maintained its capital expenditure (capex) at a disciplined 11.9% of sales year-to-date—well within its guidance. Additionally, Days Sales Outstanding (DSO) improved to 154 days, down from 175 days in the first half of 2025. This progress underscores effective working capital management and operational efficiency.
“Our consistent focus on disciplined investment, cost control, and working capital optimization continues to deliver measurable results,” said Ravichander. “We remain committed to maintaining this momentum as we expand our delivery capacity and strengthen our balance sheet.”
Outlook and Strategic Priorities
Looking ahead, Tecnotree’s management has reaffirmed its full-year 2025 guidance. The company expects:
- Net sales growth in constant currency within the low-to-high single-digit range.
- Operating result margin expansion of at least 200 basis points.
- Free cash flow exceeding EUR 4 million for the year.
Tecnotree’s priorities for the coming quarters remain clear:
- Converting its robust backlog into cash.
- Executing large-scale digital transformation programs across Europe, the Americas, and Africa.
- Continuing to drive operational excellence and cost efficiencies.
Ravichander concluded:“Our focus is on delivering sustainable value to our customers, shareholders, and employees. We thank our global teams for their dedication and our partners for their continued trust as we execute the next phase of Tecnotree’s strategy.”
About Tecnotree
Tecnotree is a 5G-ready digital Business Support System (BSS) provider, offering advanced AI/ML-powered and multi-cloud extensible solutions for telecom and digital service providers worldwide. The company leads the TM Forum Open API Conformance rankings, with 59 certified Open APIs (including nine real-world open APIs)—a testament to its commitment to open standards and innovation.
Tecnotree’s agile, open-source digital BSS stack covers the complete order-to-cash lifecycle for telecom operators and digital service providers, enabling them to create new business opportunities beyond connectivity. Through its Tecnotree Moments platform, the company also offers Finteh and B2B2X multi-experience digital marketplaces, empowering digitally connected communities across sectors such as gaming, health, education, OTT, and more.
