Kudelski Group has stepped up its transformation programme as it looks to reshape its business units and improve profitability in 2026.
The Swiss digital security specialist said 2025 was marked by a group-wide restructuring aimed at streamlining operations, reducing exposure to lower-margin legacy activities and prioritising higher-potential software and services businesses. The overhaul has affected all business units and corporate functions.
While overall revenues declined year-on-year, EBITDA excluding restructuring and one-off expenses turned positive, reflecting the early impact of cost reduction measures. Operating cash flow moved back into positive territory in the second half, and the company ended the year debt-free with over $100 million (€92 million) in cash.
Within Core Digital Security, Kudelski unified its Kudelski Labs and NAGRAVISION operations to better align advanced research with commercial deployment.
NAGRAVISION saw growth in watermarking, streaming protection and OpenTV solutions, offsetting continued decline in legacy hardware products such as set-top boxes and smart cards. Gross margins improved as the revenue mix shifted towards software and services.
The unit also signed partnerships with MediaTek, while the English Football League selected NAGRAVISION for piracy detection and disruption for the 2025/26 season, underlining the company’s strategic pivot toward anti-piracy and streaming protection services.
Kudelski expects slightly higher group revenues and improved EBITDA in 2026, as cost savings from the 2025 restructuring feed through and higher-margin digital and cybersecurity activities gain traction.
The group said the transformation momentum achieved in 2025 positions it to further reduce operating expenses, narrow cybersecurity losses and restore IoT growth, marking a shift from stabilisation to disciplined expansion.
