High-potential SMEs

Egm in the X-ray: Circle posts a 59.1% increase in net profit

Net profit of EUR 2.3 million for the port and intermodal logistics company

by Valeria Novellini

27 April 2026

5' min read

Translated by AI

Versione italiana

Key points

Numbers
The group has net liquidity, increasing thanks to cash flow
Upwardly revised 2026 targets and new acquisitions and orders for eXyond

5' min read

Translated by AI

Versione italiana

The brilliant 2025 results of Circle, a software company for the digitalisation of the port and intermodal logistics sectors, are certainly the result of its characteristic activity. But also of an almost unique peculiarity within the Euronext Growth Milan: in the past financial year, more than 40 'relevant' press releases were issued and published (i.e. concerning new contracts, release of new products, awarding of tenders, partnerships), not counting also the mandatory releases concerning the publication of periodic results, shareholders' meetings, changes in share capital and shareholders. A contact with the investing public that not even many biggies on the main stock exchange dream of.

The numbers

In 2025, Circle's revenues almost doubled from EUR 10.7 million to EUR 20.4 million and, thanks to increases in fixed assets for internal work from EUR 1.3 million to EUR 2.3 million and other income stable at EUR 2.4 million, the value of production reached EUR 25.1 million (+72.3%). These figures are in line with the 'Connect 4 Agile Growth' business plan guidance updated at the time of the half-yearly report, which indicated a value of production of between EUR 24 and 26.4 million.

Revenues from proprietary software products (also offered as Software-as-a-Service on a cloud platform) more than doubled from EUR 3.3 million to EUR 7.5 million, and revenues from Milos Federated Services jumped from EUR 0.9 million to EUR 2.3 million.

But above all, as is often the case for companies in the IT sector, economies of scale allow for a more than proportional growth in margins and, thus, ebitda more than doubled from EUR 3 million to EUR 6.1 million (even in the presence of costs for services that jumped 59.1% to EUR 8 million and personnel costs - an item always to be kept in mind in software companies - also jumped 64.7% to EUR 9.6 million.

Even after depreciation and amortisation also more than doubled from EUR 1.3 million to EUR 3.2 million, ebit reached EUR 2.86 million (+71%) and net profit EUR 2.3 million (+59.1%; the balance of financial management is almost irrelevant, but the tax rate rose from 14% to 16.8%, still remaining at a very low level).

The group has net liquidity, increasing thanks to cash flow

As of 12/31/2025 Circle had net liquidity of EUR 2.6 million, up from EUR 2.2 million at the end of 2024; if one were to consider receivables from the European Union structurally deferred due to EU rules, net liquidity at the end of 2025 would have amounted to EUR 4.9 million (EUR 4.6 million as of 12/31/2024). Circle, however, prudently decided to allocate the entire 2025 profit of the parent company, amounting to EUR 1.57 million, as retained earnings.

Circle showed, at the end of 2025, a multi-year backlog (visibility 2027) of EUR 34.1m, compared to EUR 28.5m at 31/12/2024. This obviously bodes well for the current year as well. Currently, the 2026 guidance envisages a value of production of between EUR 27.2 and 28.8 million and an ebitda of between EUR 6.3 and 7.1 million (both targets were revised upwards on the occasion of the release of the 2025 results; previously they were EUR 27 - 28.5 million and EUR 6 - 7 million, respectively).

Although the cost structure is still lean, Circle expects a further rationalisation, which may lead to an increase of the current margins. From the point of view of the market scenario, it will be able to benefit from the numerous projects - including European ones - related to the digitalisation of logistics and the full implementation of initiatives related to the NRP. As far as products are concerned, it intends to focus on the integration of advanced automation solutions (especially eXyond Gos), intelligent nodes (Milos Tfp and Mto) and, of course, artificial intelligence technologies (Milos Intelligence) evolving within the Milos system.

Targets 2026 revised upwards and new acquisitions and orders for eXyond

The target for 2026 is to generate 43% of the value of production from professional services, 31% from licences, 11% from consulting and project services, 10% from the evolution of current products and 5% from help desk services.

It has already been said that Circle communicates a lot, and naturally continued to do so in 2026. At the end of March, the subsidiary eXyond (active in infomobility services with InfoBluNewGen and in telematics solutions for logistics, transport and insurance with Kmaster) finalised the acquisition of Qmap, an Italian company active in the development of advanced technology solutions in the Geographic Information System and Intelligent Transport System fields, which in 2025 achieved revenues of EUR 1.4 million, EBITDA of EUR 0.3 million and a net profit of EUR 140,000, with a substantially neutral financial position. The amount of the acquisition is a maximum of EUR 1.51m, of which EUR 0.86m was paid at closing, EUR 0.29m by 30 September 2026 and up to EUR 0.36m by April 2027 linked to the achievement of specific economic and financial targets and with partial payment in Circle shares.

Also in mid-April, eXyond was awarded a EUR 290,000 contract with a major intermodal maritime logistics operator in Italy, to which it will supply Gate Automation systems based on the eXyond Gos platform.

From 2026 until 2029 Circle will focus on foreign markets

For the financial years after 2026, Circle is focusing above all on internationalisation and intends to develop a direct presence in some key markets such as Morocco, Turkey, Egypt, Greece, Central Europe and the Middle East; it also intends to establish partnerships with India, African countries and the Gulf area, but naturally these initiatives will have to take into account the currently turbulent geopolitical situation.

In the meantime, the group's partnerships also include that with the Ravenna-based logistics operator Setramar (for which the digitalisation of operational and documental processes will be carried out) and with the logistics and maritime operator Dario Perioli Group, with which the International Fast & Secure Trade Lanes Italia - Tunisia project was launched, which will involve Italian ports (including Marina di Carrara) and the Tunisian ports of Sfax and Sousse. In addition, Circle was entrusted by the Start4.0 Competence Centre with advanced consulting services for process innovation in order to increase business competitiveness in the ports, transport, and logistics sector (the assignment is part of the activities financed by the NRP).

The market believes in Circle and the share price has more than doubled in the past year. Exchanges are unfortunately latent, as is often the case at Euronext Growth Milan, but since 21 April, the stock has moved to the minimum trading lot, which may facilitate trading. The free float is fairly high (28.34% of the share capital), and the company can count on the presence of institutional investors such as Eiffel Investment Group (10.77%), Algebris Investments Limited (5.13%) and, very recently, also Alkemia Capital Partners (5.06%).