Investing for future growth

Research evidence excerpt

Investing for future growth

adjust our reporting format accordingly. During stepping down to 4.75x after 36 months

the quarter, management highlighted record-high processed data volumes, after the Issue Date

reflecting the platform’s growing scale. At the same time, employee Call structure:

turnover across management and front-office functions weighed on

profitability and operations. Management acknowledged higher customer • MW until 18 May. 2027

churn during the quarter, driven by platform downtime and service lag. To • @ 102.813% until 18 Nov. 2027

address this, Infront has appointed its first COO whose job is to improve • @ 101.875% until 18 May. 2028

the company's client support function. Management also guided for higher • @ 100.938% until 18 Nov. 2028

investments in product quality, infrastructure and customer experience • @ 100.469% until 18 May. 2029initiatives. While these measures are expected to weigh on near-term

EBITDA, management expects operational improvements and recovery • @ 100% until 18 Nov. 2029

from next year onwards. The new CFO also emphasised that historical Dividends:

underinvestment in product development has constrained growth and cash • No distribution prior to an IPO (EURflow, making reinvestment a key strategic priority going forward. 0.5m p.a. carveout)

Near-term pressure expected Company description

Following the company’s updated strategic priorities, we revise our Infront is a provider of market data and

estimates to reflect announced investments in personnel and product trading solutions to the financial sector in

development. In line with management commentary, we expect the Europe.

ongoing “operational reset” to weigh on near-term EBITDA and drive

higher software development capex. We therefore lower our 2026e– Analyst(s):