Verisure (OM:VSURE) Revenue Growth Outpaces Market but Net Losses Persist, Challenging Profitability Narratives

Verisure (OM:VSURE) just posted its Q3 2025 numbers, delivering €933 million in revenue with basic EPS at -€0.06. Over the past year, the company has seen revenue grow from €854 million to €933 million, while EPS figures have stayed negative across multiple quarters. Despite compressed margins and ongoing unprofitability, investors are watching closely as growth forecasts remain upbeat from this point forward.

See our full analysis for Verisure.

Now let’s see how these figures compare to the narratives that drive sentiment and market expectations. We will also consider where the numbers might upend conventional views.

Curious how numbers become stories that shape markets? Explore Community Narratives

Net Losses Persist Despite Top-Line Growth

• Trailing twelve-month net income stands at -€190.4 million, reflecting ongoing unprofitability even as revenues climbed to €3.65 billion over the same period.
• Bulls highlight a forecasted 63.36% annual earnings increase and project that Verisure may turn profitable within three years. However, the company’s persistent net losses challenge the optimism around rapid margin expansion.
  • Consensus narrative points to robust 10% year-on-year revenue growth outpacing the Swedish market but notes that margins and profitability have yet to materially improve.
  • Bulls may be encouraged by strong top-line expansion, but critics will watch whether projected earnings growth can be turned into actual bottom-line results.

Discount to Fair Value Masks Premium P/S Ratio

• At a current share price of €15.38, Verisure trades roughly 47% below its DCF fair value of €31.04. Its price-to-sales ratio (4.5x) is well above both peers (0.9x) and the Swedish sector average (0.4x).
• Consensus narrative notes that while the hefty discount to fair value could support upside, the premium price-to-sales relative to the industry tempers enthusiasm and puts extra pressure on Verisure to deliver the profit growth investors expect.
  • Investors weighing future growth optimism must factor in the current unprofitability when comparing Verisure to lower-multiple peers.
  • If the company delivers on improving margins, the valuation gap versus industry could close, supporting the consensus expectation of a potential 20.6% share price rise.

Revenue Growth Outpaces Market Average

• Verisure’s revenue jumped 10% year-on-year, beating broader Swedish commercial services industry averages and helping build optimism around its scalable business model.
• General market opinion is that demand for Verisure’s security and monitoring solutions remains robust thanks to its recurring revenue streams and sector tailwinds. However, transformational profitability is needed for growth to drive shareholder returns.
  • The consistency of revenue growth, especially against the wider market, supports the core thesis that Verisure operates in a resilient and essential sector.
  • While revenue momentum is strong, long-term outperformance will rely on translating sales expansion into positive net income and cash flow within the forecast window.

For more analysis connecting Verisure’s latest results to market expectations and forward-looking narratives, see what the community is debating in the full consensus view. 📊 Read the full Verisure Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Verisure's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

While Verisure’s top-line growth impresses, its ongoing net losses and lack of bottom-line improvement remain clear concerns for investors seeking more dependable profitability.

If steady earnings and stronger financial returns matter to you, check out stable growth stocks screener (2074 results) to find companies delivering consistent performance and reliable growth through every cycle.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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