FULLTEXT DEL 3 AV 6
Årsredovisning 2025
Based on forecast data, deferred tax assets on losses carried
forward are recognised to the extent that it is probable that
future taxable profits will be available against which the
amounts can be utilised. Even if no statutory profits are
forecasted, deferred tax assets (resulting from both deductible
temporary differences, unused tax losses and unused tax
credits) are recognised up to the amount of deferred tax
liability if the reversals occur during the same period. The
carrying amount is reviewed on each balance sheet date
and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or
part of the asset to be recovered.
Current and deferred tax assets and liabilities are offset
when they relate to income taxes levied by the same taxation
authority and the Group is able to, and intends to, settle its
current tax assets and liabilities on a net basis.
Property, plant and equipment | IAS 16 & IAS 36
Property, plant and equipment are recognised at cost less
accumulated depreciation and any cumulative impairment
losses.
Depreciation is calculated using the straight-line method to
allocate the cost of the assets, net of their residual values,
over their estimated useful lives as follows:
Alarm equipment 6–14 years
Other machinery and equipment 3–10 years
The useful lives of Group assets are determined by
management, decided country by country as well as split by
residential and business customers, and applied at the time
of installation and are reviewed annually. The assets’ useful
lives are based primarily on historical attrition, as well as
anticipation of future events that may have an impact, such
as technological tendencies and macroeconomic factors.
Alarm equipment is considered as devices installed in
customers’ premises. Other machinery and equipment are
primarily IT-equipment and furniture.
An asset’s residual value and value-in-use is annually reviewed,
and adjusted if appropriate, on the defined reporting date. If
the carrying amount is greater than the estimated recoverable
amount it is written down. Gains and losses on disposals are
recognised in the consolidated income statement as cost of
sales. Alarm equipment is retired at customer cancellation.
Leases | IFRS 16
The Group recognises a right-of-use asset and a lease liability
on the commencement date of the lease. The right-of-use
asset is initially measured by cost, which comprises the
initial amount of the lease liability adjusted with any direct
cost incurred, lease payments made at or before the
commencement date and estimation of dismantling, removal
and restoration costs required by the terms and conditions of
the lease. The right-of-use asset is subsequently measured at
cost less accumulated depreciation and impairment losses.
Depreciation is charged to the consolidated income statement
from the lease commencement over the shorter of the useful
economic life of the leased asset and the lease term unless the
lease contains a bargain purchase option which is reasonably
certain to be exercised. The asset is always depreciated over
the useful economic life of the asset using a straight-line
method.
The lease liability is initially measured at the present value of
the lease payments not paid at the commencement date. This
includes fixed payments, variable lease payments that depend
on an index or rate, and the amounts expected to be payable
under a residual value guarantee.
The liability is measured at an amortised cost using the
effective interest method. The liability is generally discounted
using the lessees incremental borrowing rate except in rare
circumstances in which the rate implicit in the lease is easily
determinable. The incremental borrowing is determined for
each contract, with separate calculations per country, per
contract length as well as asset type, taking into account
securities for some types of assets. The incremental borrowing
rate is based on the calculation of the cost of debt in the
Group’s overall weighted average cost of capital (WACC)
calculation.
The liability is remeasured when there is a change in future
lease payments arising from a change in an index or rate or if
the Group changes its assessment of whether it will exercise
an extension or termination option. When the lease liability
is remeasured, a corresponding adjustment is made to the
carrying amount of the right-of-use asset.
Costs in respect of lease arrangements that are short-term in
nature or relate to low-value assets are charged directly to the
consolidated income statement on a straight-line basis over
the term of the lease. Short-term leases are leases with a term
of 12 months or less and low value is normally below €10k.
For non-lease components are included in vehicle leases,
but not in leases of buildings.
Intangible assets | IAS 36 & IAS 38
Goodwill
Goodwill arising on business combinations is recognised as
an asset on the date that control is acquired (acquisition date).
Goodwill is measured as the excess of the acquisition cost over
the net fair value of identified assets, liabilities and contingent
liabilities of a subsidiary at the date of acquisition. Goodwill is
not amortised but is subject to an annual impairment test
or more frequently if there is an indication of impairment.
Goodwill is allocated to cash-generating units (CGUs), the
lowest levels for which there are separately identifiable cash
flows. Any impairment loss recognised for goodwill cannot be
reversed in a subsequent period.
Customer portfolio
The customer portfolio includes contract portfolios from
business combinations and customer acquisition costs.
Customer portfolios from business combinations are principally
represented by acquired customer portfolios and have finite
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useful lives. These assets are recognised at fair value at the
acquisition date and amortised over their estimated useful
lives on a straight-line basis.
Customer acquisition costs are the incremental costs the Group
incurred to obtain a contract with a customer, that it would not
have incurred if the contract had not been obtained. This is
mainly related to sales force commissions, paid when a new
contract is signed. Customer acquisition costs are recognised
at cost less accumulated amortisation.
Amortisation is based on the asset’s cost and allocated on a
straight-line basis over the estimated useful life. The estimation
of useful life is based on historical and statistical data which
includes attrition, showing how long until the customer cancels
the contract with the Group and is reviewed and updated where
required on an annual basis.
Other intangible assets
Other intangible assets are primarily computer software,
development costs and trademarks. Trademarks are only
capitalised if acquired in a business combination.
Trademarks with an indefinite useful life, where no predictable
limit exists on the period during which the trademark is
expected to generate revenue, are carried at cost less any
accumulated impairment losses. These assets are not
amortised but are tested for impairment annually, or more
frequently if events or changes in circumstances indicate
that their carrying amount may be impaired.
Trademarks with a finite useful life, where a predictable limit
exists on the period during which the trademark is expected
to generate revenue, are amortised over their estimated useful
life. In determining the useful life, contractual terms and other
relevant factors are taken into consideration.
Development costs directly attributable to the design and
testing of identifiable and unique software products controlled
by the Group are recognised as intangible assets where the
capitalisation criteria are met. Directly attributable costs
capitalised as part of the software include employee costs and
an appropriate portion of relevant overheads.
Development costs related to configuration of cloud solutions
are not capitalised, but are reported as cost in the income
statement.
Capitalised development costs are recorded as intangible
assets and amortised from the point at which the asset is
ready for use.
Amortisation times for intangible assets
Amortisation of intangible assets is recognised to the
consolidated income statement, either as Cost of sales or as
Administrative expense, on a straight-line basis, as follows:
Customer portfolio 4-16 years
Internally developed intangible assets 3–10 years
Other intangible assets 3–10 years
Trademarks (finite) 6-10 years
For Customer Portfolio, the useful life ranges are calculated by
country, split between business and residential customers with
the weighted average useful life sitting towards the middle of
the range.
Impairment of non-financial assets | IAS 36
Assets with an indefinite useful life are not subject to
amortisation and are tested for impairment annually or as soon
as an indication emerges that they have decreased in value.
Assets subject to amortisation are reviewed for impairment
whenever events or changes in circumstances indicate that the
recoverable amount may fall short of the carrying amount. The
amount in excess of the recoverable amount is recognised in
the consolidated income statement as an impairment loss.
For the purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately identifiable
cash flows (CGUs).
Financial instruments | IFRS 9
Financial assets – classification and measurement
The Group classifies and measures its financial assets in the
categories at amortised cost and at fair value through profit or
loss. The classification depends on the Group’s business model
for managing the financial assets and the contractual terms of
the cash flows.
Debt instruments
Financial assets measured at fair value through profit or loss
Assets that do not fulfil the conditions for measurement
at amortised cost are initially measured at fair value and
subsequently remeasured at each reporting date. Changes
in carrying value of derivatives not included in a hedging
relationship are recognised as net in the Consolidated income
statement. Accounting principles for derivatives for hedge
accounting are described under the section ‘Derivatives and
hedge accounting’ below.
Equity instruments
Equity instruments measured at fair value through profit or loss
The Group subsequently measures all equity investments at fair
value. Changes in the fair value of financial assets at FVPL are
recognised in the statement of profit or loss as applicable.
Financial liabilities – classification and measurement
Financial liabilities measured at amortised cost
The Group’s financial liabilities consist of long-term borrowings,
other non-current liabilities, trade payables, short-term
borrowings and other current liabilities.
Impairment of financial assets recognised at
amortised cost
The Group assesses, on a forward-looking basis, the expected
credit losses associated with its debt instruments carried at
amortised cost. The impairment methodology applied depends
on whether there has been a significant increase in credit risk.
Financial Statements
Notes to the Consolidated Financial Statements continued
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For trade receivables, the Group applies the simplified
approach, i.e. the reserve will correspond to the expected loss
over the lifetime of the trade receivables. To measure the
expected credit losses, trade receivables are grouped based on
days past due. Expected credit losses are based on historical
loss rates adjusted to reflect current and forward-looking
information on macroeconomic factors affecting the ability of
the customers to settle the receivables. When the Group has
more customer information than reflected in the statistical
model, a management overlay is made for those specific
customers. Expected credit losses are recognised under
‘cost of sales’ in the consolidated income statement.
Derivatives and hedge accounting
Derivatives are reported at fair value in the Statement of
financial position on the date of contract, both initially and at
subsequent remeasurement. The method used to report the
gain or loss arising on remeasurement depends on whether the
derivative was designated as a hedging instrument, and if so,
the nature of the item hedged. The Group designates certain
derivatives as hedging of a particular risk attributable to a
highly probable forecast cash flow transaction (cash flow
hedging). The Group does not use derivative financial
instruments for speculative purposes.
When the Group enters into a transaction, the relationship
between the hedging instrument and the hedged item, as well
as the Group’s objective for the risk management and the risk
management strategy relating to the hedge, is documented.
The Group also documents its assessment, both initially and
subsequently, of whether the derivatives used in hedging
transactions have been and will continue to be effective as
regards countering changes in the cash flows attributable to
the hedged items.
Information regarding fair values of various derivatives used
for hedging purposes is found in note 22 Financial risk
management. Fair values of derivatives not considered hedging
instruments are classified as non-current assets or liabilities
if the remaining term of the hedged item is longer than 12
months, and as current assets or liabilities if shorter. Trading
derivatives are classified as current assets or liabilities.
Transaction exposure – cash flow hedging
Currency exposure relating to future contracted and forecast
cash flows is hedged through forward currency contracts. These
contracts are recognised in the Consolidated statement of
financial position at fair value. The effective portion of changes
in fair value is deferred to other comprehensive income. Hedge
effectiveness is determined at the inception of the hedge
relationship and through prospective assessments. When the
hedged item is ultimately recognised in the Consolidated
income statement the amounts previously recognised in
other comprehensive income are reclassified to profit or loss.
The ineffective portion of the change in value is recognised
immediately in the Consolidated income statement. If the
hedged forecast transaction is no longer expected to occur,
accumulated gains or losses are recognised in income. If the
Group fails to designate the hedging relationship before the
hedged transaction has occurred and the forecast transaction
is still expected to occur, the reported accumulated gain or loss
remains in the hedging reserve in equity and is recognised in
the same way as above when the transaction occurs.
Derivatives that are not designated as hedging
instruments
Changes in the fair value of any derivative instrument that have
not been designated as hedging instruments are recognised
immediately in profit or loss.
Trade receivables
Trade receivables represent amounts owed by customers where
the right to receive payment is conditional only by the passage
of time. These are recorded at amortised cost reduced by
allowance for estimated credit losses, unless they contain
significant financing components when they are recognised
at fair value.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held
at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less.
Borrowing
Borrowings are recognised at amortised cost net of transaction
costs, applying the effective interest method. Transaction costs
that are directly attributable to the establishment of credit
facilities are deducted from the carrying amount of the related
borrowings and amortised over the expected term of the loan
using the effective interest rate when it is decided that the
facility is planned to be utilised.
Borrowing is classified under current liabilities unless the
Group has an unconditional right to defer payment of the
debt for at least 12 months after the closing date.
Inventories | IAS 2
Inventories, consumables and supplies, are stated at the
lower of cost and net realisable value. The cost includes the
reclassification from equity of any gains or losses on qualifying
cash flow hedges relating to purchases of inventories. Net
realisable value is the estimated selling price less all costs of
completion and costs to be incurred in selling and distribution.
The cost of inventories is determined by using the first-in first-
out method. Provisions for obsolescence are included in the
value for inventory.
Provisions | IAS 37
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of economic resources will be
required to settle that obligation and a reliable estimate of the
amount can be made. Obligations expected to be settled within
12 months of the reporting date are included within current
liabilities.
Provisions are measured at the present value of management’s
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. Where a provision
is measured using the cash flows estimated to settle the
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present obligation and the difference between the carrying
amount and the present value of those cash flows is material
to the financial statements, the carrying amount is the present
value of those cash flows. The discount rate used to determine
the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific
to the liability. The increase in the provision due to the passage
of time is recognised as interest expense.
Hyperinflation | IAS 29
The Argentinian economy was designated as hyperinflationary
from 1 July 2018. The Group applies IAS 29 Financial Reporting in
Hyperinflationary Economies to its Argentinian operations. The
Argentine peso results and non-monetary assets and liabilities
have been revalued using the consumer price index issued by
the Argentine Federation of Professional Councils of Economic
Sciences (FACPCE).
New standards and amendments
Certain new accounting standards and amendments to
accounting standards have been published that are mandatory
and have been adopted by the Group as of December 2025.
This relates mainly to the amendments to IAS 21 ‘The Effects of
Changes in Foreign Exchange Rates’ which have been issued
and adopted. It is effective for periods beginning on or after
1 January 2025 and was endorsed by the United Kingdom
Endorsement Board (UKEB) in 2024. This amendment did not
have a significant impact on the Group’s profit or loss or
financial position.
Certain new accounting standards and amendments to
accounting standards have been published that are not
mandatory as of the 31 December 2025 reporting period and
have not been early adopted by the Group. This mainly relates
to IFRS 18, explained more in detail below, as well as
amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7
‘Financial Instruments: Disclosures’, effective for periods
beginning on or after 1 January 2026 – endorsed by the UKEB in
2025. The Group does not expect these amendments to have a
material impact on the operations or the Group financial
statements, except for IFRS 18 explained below.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 will replace IAS 1 Presentation of financial statements,
introducing new requirements to achieve better comparability
of the financial performance of similar entities. IFRS 18 is
expected to change the presentation of the Consolidated
Income statement and to differentiate between earnings
from operating activities, investment activities and financing
activities, and will add additional disclosures. However, IFRS 18
will not change any accounting policies on recognition and
measurement, hence it will not change reported net profit.
IFRS 18 is effective for annual reporting periods beginning
on or after 1 January 2027.
Note 3 Critical accounting estimates
and significant judgments
In preparing the consolidated financial statements and
applying the Group’s accounting policies, management must
make estimates and judgments that affect the amounts
recognised in the financial statements. Such estimates and
judgments are based on factors such as historical experience,
the observance of trends in the industries in which the Group
operates and information available from the Group’s customers
and other outside sources. Although these estimates and
judgments are based on management’s best information about
current circumstances and future events and actions, actual
results may differ and result in material variances.
The critical accounting estimates and judgments made in
applying the Group’s accounting policies are set out below.
Critical accounting estimates
Revenue recognition
Revenue recognition requires management to make estimates,
mainly to determine stand alone selling prices. The stand alone
selling price determines how much of the revenue should be
recognised immediately and how much should be deferred. The
stand alone selling price used to determine security audit and
installation revenue is calculated using a cost plus method. It
relies on the estimated cost for installation and security audit
and a margin based on an external benchmark.
If the stand
alone selling price would change +/- 5% compared to the
applied selling price, this would give an impact on the revenue
and operating profit for the year of +/- €13.5m.
Valuation of intangible assets arising from acquisition
The valuation of intangible assets arising on the acquisition of
ADT Mexico requires an assessment of the fair value of those
assets. Refer to note 5 Business combinations for further
information. That assessment requires the business to
determine the future benefits that a market participant would
expect to obtain from those assets as well as a discount rate
and so is subject to significant estimation. If different estimates
were used, the valuation of goodwill and intangible assets
arising on the acquisition would change. The profit would be
impacted due to changes in intangible assets which would
impact the amortisation going forward.
Impairment of goodwill and other non-financial assets
Goodwill and other intangible assets that have an indefinite
useful life and are not subject to amortisation. Instead, assets
with an indefinite useful life are tested annually for
impairment, or more frequently if events or changes in
circumstances indicate that their carrying values may be
impaired. Other assets are tested for impairment whenever
events or changes in circumstances indicate that the carrying
amount may not be recoverable.
Financial Statements
Notes to the Consolidated Financial Statements continued
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The recoverable amounts of cash-generating units (CGUs)
have been determined based on value-in-use calculations.
The value-in-use calculations are based on estimated future
cash flows. In calculating the net present value of the future
cash flow, certain assumptions are required to be made in
respect of uncertain matters, mainly including management’s
expectations of long-term sales growth rates, growth in
Portfolio Services Adjusted EBITDA and applied discount rates.
Changing the assumptions selected by management, especially
the assumptions regarding discount rate and long-term sales
growth rates, could significantly affect impairment evaluation
and hence the result. For further details refer to note 18.
Other accounting estimates
Other estimates consists of estimates which are not the most
significant estimates for the Group, but which still hold enough
importance to inform specifically on these estimates.
Useful lives for alarm equipment and customer portfolio
The useful lives of Group assets are determined by
management, decided country by country, split by residential
and business customers, applied at the time of installation
and are reviewed and adjusted annually if necessary. The
calculations of useful lives for alarm equipment and customer
portfolio assets are two separate, but similar calculations. Both
calculations are based on the three-year average of customer
attrition and, when necessary, are adjusted to take into account
anticipation of future events that may impact the useful life
separately for each asset type. For alarm equipment this mainly
consists of technological evolution e.g. 2G/3G network
shutdown and macroeconomic factors, and for customer
portfolio it mainly consists of macroeconomic factors
.
Measurement of tax provisions and deferred income tax
assets and liabilities
The Group operates in a number of countries and is liable to
pay income taxes in numerous jurisdictions. The recognition of
a tax provision involves judgment based on interpretation of
applicable tax legislation on a country by country basis and an
assessment of the likely outcome of any open tax assessments.
The final resolution of some of these items may give rise to
differences between the tax charge in the full year consolidated
income statement, recognition of deferred taxes and tax
payments.
The complexity of the Group’s structure makes the degree of
estimation and judgment more challenging. The resolution of
issues is not always within the control of the Group, and it is
often dependent on the efficiency of the legal processes in the
relevant taxing jurisdictions in which we operate. For further
information regarding tax provisions, refer to note 14 Taxes.
Significant accounting judgments
Alarm equipment classified as inventory
Inventory mainly consists of alarm equipment, most of which
is held in our global logistic centres, and is subsequently
either installed at a customer’s premises, used for repairs
and maintenance or sold via retail channels. Although a large
portion of the inventory will eventually be recognised as
an item of Property, plant and equipment, the Group has
concluded that this alarm equipment is best represented as
inventory given the complexity and significant estimation
uncertainty in presenting a divided value of our inventory
pool on the statement of financial position.
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Note 4 Segment reporting
The Group’s operating segments are identified by grouping together the business by revenue stream, as this is the basis on which
information is provided to the Chief Operating Decision Maker (CODM) for the purposes of allocating resources within the Group
and assessing the performance of the Group’s businesses. The Group has identified the Group Management Team as its CODM.
The segments identified based on the Group’s operating activities are Customer acquisition, Portfolio services and Adjacencies.
Separately disclosed items (SDIs) are not measured per segment.
Portfolio services
The Portfolio services segment provides a full security service to our customers for a monthly subscription fee. We typically enter
into self-renewing monitoring agreements with customers at the time of installation and the majority of customers pay via direct
debit. Our service includes 24/7 monitoring, expert verification and response, customer care, maintenance, and professional
technical support to existing customers.
Customer acquisition
This segment develops, sources, purchases, provides and installs alarm systems for new customers in return for an upfront
sales or installation fee. Sales and installations can be performed both by our own employees and by external partners. Each new
customer generates installation income that is recognised once the installation of the alarm equipment has been completed.
The Group’s costs for materials, installation, administration and marketing generally exceed the non-recurring income, resulting
in negative cash flow for the segment.
Adjacencies
The Adjacencies segment contains remote monitoring and assistance, services for senior protection as well as the sale of Arlo
cameras, video surveillance services in retail and online channels across Europe. These sales are not considered as part of our
core alarm business, and the revenue is therefore categorised as adjacencies.
€m 2025 2024
Portfolio services 3,267.8 2,947.8
Customer acquisition 362.2 367.4
Adjacencies 115.4 92.8
Total revenue 3,745.4 3,408.0
There is no internal revenue between segments, therefore all the revenue in the table above is external revenue.
€m 2025 2024
Portfolio services 2,409.1 2,141.9
Customer acquisition (723.0) (627.4)
Adjacencies 21.9 19.5
Adjusted EBITDA¹ 1,708.0 1,534.0
Separately disclosed items affecting EBITDA² (170.6) (32.1)
Share-based compensation (21.2) -
Depreciation and amortisation (1,078.1) (1,068.7)
Retirement of assets (139.4) (125.8)
Operating profit 298.7 307.4
Financial items (494.9) (495.5)
Profit or (loss) before tax (196.2) (188.1)
1) The Group does not analyse segment data below Adjusted EBITDA.
2) A more detailed explanation of the Separately disclosed items affecting EBITDA is provided in the sections 'Alternative performance measures and other performance
metrics' and 'Alternative performance measures reconciliation'.
Financial Statements
Notes to the Consolidated Financial Statements continued
104 Verisure plc | Annual Report 2025
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Geographical distribution of revenue
Our operating segments Customer acquisition and Portfolio services are represented in all of the geographical regions presented.
The operating segment Adjacencies is only represented in the Iberia and Nordics and Central and other geographical regions.
€m 2025 2024
Iberia and Nordics1 1,998.9 1,852.6
Other Europe2 1,340.4 1,200.5
Latin America 344.9 303.1
Central and other 61.2 51.8
Total 3,745.4 3,408.0
1) Of this, €1,302.7m (€1,186.5m in 2024) relates to revenue in Spain.
2) Of this, €649.9m (€593.6m in 2024) relates to revenue in France, and €109.1m (€102.6m in 2024) relates to the UK.
Geographical distribution of non-current assets
€m 2025 2024
Spain 4,806.3 4,703.1
Sweden 2,363.9 3,206.6
France 2,241.9 1,903.0
UK 226.4 212.8
Remaining countries 5,447.7 4,874.6
Total 15,086.2 14,900.1
The above table comprises of the following balances presented in the consolidated statement of financial position: intangible assets, property, plant and equipment, right-of-
use assets, and other non-current receivables that are not financial instruments.
Note 5 Business combinations
On 31 October 2025, the Group acquired 100% of the shares and voting rights in ADT Private Security Services de Mexico S.A. de C.V.,
a company based in Mexico with corporate domicile in Mexico City. The total consideration paid was €207.5m, settled in cash at the
time of acquisition. No part of the consideration was contingent or deferred, and the consideration was settled through the
Group’s existing cash and borrowing facilities.
The Company specialises in security, monitoring, and alarm systems for both residential and business customers. The acquisition
enhances the Group’s strategy to continue to expand into high-potential markets and establishes the Group as the number one
provider of professionally monitored security services in Mexico.
This transaction has been accounted for as a business combination under IFRS 3. According to the preliminary purchase price
allocation, acquired intangible assets mainly relate to customer relationships (customer portfolio). The goodwill arising is, among
other things, attributable to extensive local market knowledge, workforce know-how and buyer-specific synergies going forward.
The recognised goodwill will not be deductible for tax purposes.
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€m Fair value
Property, plant and equipment 7.7
Right-of-use assets 6.3
Customer portfolio 113.8
Other intangible assets - Brand right of use 24.9
Inventories 1.3
Trade and other receivables 6.5
Cash and cash equivalents 3.2
Trade and other liabilities (13.0)
Lease liabilities (6.3)
Net deferred tax (35.9)
Net current tax 0.2
Other assets and liabilities 5.5
Total net asset value excluding goodwill 114.2
Goodwill 93.3
Total net asset value including goodwill/Total consideration paid in cash at time of acquisition 207.5
Less acquired cash and cash equivalents (3.2)
Net cash outflow from business combinations 204.3
The acquired business contributed revenue of €13.7m and net profit of €2.7m to the Group for the period from 31 October to
31 December 2025. If the acquisition had occurred on 1 January 2025, consolidated pro-forma revenue and net profit for the year
would have been approximately €84.5m and €5.9m respectively.
Acquisition-related costs of €8.4m are included in administrative expenses in the Consolidated Income Statement and in cash flow
from operating activities in the Consolidated Statement of Cash Flows.
There were no business combinations in 2024.
Note 6 Operating expenses by type
€m Note 2025 2024
Employee benefit expense 8 1,366.8 1,243.6
Depreciation and amortisation expense 12 1,078.1 1,068.7
Retirement of assets 17 139.4 125.8
Cost of materials 71.1 75.6
Marketing and media-related costs 464.5 400.2
Other expenses 332.4 191.6
Total 3,452.3 3,105.5
€m 2025 2024
Exchange rate differences included in operating profit (0.5) (5.4)
Exchange rate differences included in financial income and expenses are shown in note 13 Financial income and expenses.
Financial Statements
Notes to the Consolidated Financial Statements continued
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Note 7 Auditor's remuneration
€m 2025 2024
Fees payable to the Company's auditors and its associates for the audit of parent Company and
consolidated financial statements1 1.5 0.4
Fee payable to Company's auditors and its associates for other services:
Audit of the financial statements of the Company's subsidiaries 1.8 1.6
Audit-related assurance services2 0.3 -
Other assurance services3 1.6 1.1
Services relating to corporate finance transactions4 0.4 -
Tax advisory services 0.0 0.0
Total 5.6 3.1
1) Audit fees of €1.5m include €0.1m for the audit of the parent company financial statements and €1.4m for the audit of the consolidated financial statements.
2) Audit-relates assurance services include fees for limited assurance on the sustainability statement in accordance with CSRD requirements.
3) Other assurance services mainly include €1.1m for the preparation of the independent accountant's report included in the prospectus. These services are non-audit in nature
and are not covered under statutory audit or audit-related assurance.
4) Services relating to corporate finance transactions relate to the listing support services in connection with the Company's admission to trading on the Nasdaq Stockholm.
These services are non-audit in nature and are not covered under statutory audit or audit-related assurance.
Note 8 Employee information
Monthly average number of employees (headcount)
Number 2025 2024
Sales and Marketing Acquisition 14,457 14,187
Customer Operations 10,655 9,880
Innovation & Technology 1,233 1,127
Support & Adjacencies 3,551 3,356
Total 29,896 28,550
Employee benefit expenses
€m 2025 2024
Wages and salaries 995.3 929.0
Social security costs 288.4 257.8
Share-based payment expenses 22.8 1.7
Pension cost - defined contribution plans 59.3 54.2
Pension cost - defined benefit plans 1.0 0.9
Total 1,366.8 1,243.6
Key management personnel are defined, for the purpose of disclosure under IAS 24 ‘Related Party Disclosures’, as the Board of Directors and
the CEO. In 2025, short term employee benefits for key management personnel amounted to €3.3m (€2.1m in 2024), post employment benefits
corresponded to €0.1m (€0.1m in 2024) and the cost for share-based payments amounted to €1.9m (€0.4m in 2024). For further information
about key management personnel, see the Remuneration Report presented in the Governance Report in this document.
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Note 9 Share-based compensation
Restricted Share Awards (RSUs)
In October 2025, 8,745,146 shares were awarded to employees across the Group. 50% of the RSUs will vest on 30 October 2026 and
50% will vest on 30 October 2027. The RSUs are conditional on continued employment through to the applicable vesting dates and
are therefore subject to forfeiture over the vesting period. The awards will be settled by delivering shares to the participants.
The weighted average fair value at grant date for the awards outstanding was €13.3m. The weighted average remaining contractual
life of awards outstanding at end of period was 1.3 years.
The following awards were outstanding as at 31 December 2025 and 2024:
Awards Options
Units 2025 2024 2025 2024
Balance at beginning of year - - 1,512,600 1,406,180
Granted during the year 8,745,146 - 131,737 161,800
Forfeited during the year (18,389) - (35,992) (41,940)
Exercised during the year - - (18,426) (13,440)
Balance at end of year 8,726,757 - 1,589,919 1,512,600
No options were exercisable by 31 December 2025 and no options expired during 2025.
Legacy Employee Option Plans
Certain employees of the Group participate in a management option plan and have been granted shares in Aegis Lux 2 S.à r.l. as
a part of their compensation. The options vest in instalments over a period of a maximum of 5 years and are settled in shares.
Pursuant to the IPO in October 2025, these legacy equity plans were discontinued and roll off agreements were established, giving
rise to a plan modification under IFRS 2. The roll off plan resulted in accelerated vesting conditions to 1 January 2026, forfeiture or
cancellation of unvested shares and a change from equity to cash settlement for any vested or unvested shares remaining.
At 31 December 2025, the fair value of the legacy option plans were zero, resulting in a credit of €1.8m to the income statement.
This plan modification resulted in a reclassification of the fair value of the options from equity to short-term liabilities. Total
expenses arising related to options issued under the legacy plans of €3.6m (€1.7m in 2024) have been recognised in the
Consolidated Income Statement of which €2.4m relates to the accelerated vesting.
Fair value of options granted
The fair value of the options at grant date is independently determined using an adjusted form of the Black-Scholes model which
includes a Monte Carlo simulation model that takes into account the exercise price, the term of the option, the impact of dilution
(where material), the share price at grant date and expected price volatility of the underlying share, the risk-free interest rate for
the term of the option, and the correlations and volatilities of the peer group companies.
Equity plan
A limited number of leaders in the Group participate in an equity plan, which allows them to acquire shares at fair market value in
Aegis Lux 2 S.à r.l., either directly or through a legal entity. As the investment is done at a fair market value and with participants’
out-of-pocket resources, there is no benefit for the employees. This equity plan has no impact on the Group’s Consolidated
Financial Statements.
Expenses arising from options and awards
Total expenses (excluding social security contributions) arising from options and awards recognised as an operating expense
during the period was:
€m 2025 2024
Legacy Employee Option Plan 3.6 1.7
Restricted Share Awards (RSUs) 19.2 -
Total 22.8 1.7
Financial Statements
Notes to the Consolidated Financial Statements continued
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The social security contributions for the share-based compensation plans recognised as an operating expense was €2.0m
(€0.2m in 2024).
Note 10 Non-cash items
€m 2025 2024
Non-cash cost related to share-based compensation 21.1 -
Adjustment of hyperinflation (0.3) 2.1
Total 20.8 2.1
Note 11 Leases
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
Amounts recognised in the Consolidated Income Statement are as follows:
€m 2025 2024
Depreciation charge - right-of-use assets 72.6 64.1
Interest expense¹ 10.4 8.3
Expense relating to short-term leases² 1.6 2.7
Expenses relating to leases of low-value assets² 3.4 2.5
Total 88.0 77.6
1) Included in financial expenses.
2) Included in cost of sales, selling expenses and administrative expenses.
Total cash outflow for leases
€m 2025 2024
Repayment of lease liabilities 66.7 61.0
Interest 10.4 8.3
Payments relating to leases of low-value assets and short-term contracts 5.0 5.2
Total cash outflow 82.1 74.5
Refer to note 25 Borrowings for more information regarding lease liabilities.
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Right-of-use assets
2025
€m Buildings Vehicles Other assets Total
Cost
Balance at beginning of year 169.8 98.6 1.4 269.8
Additions 26.0 59.0 0.2 85.2
Business combinations 5.5 0.8 - 6.3
Disposals/retirements of assets (11.9) (35.8) - (47.7)
Translation differences 0.4 (0.1) - 0.3
Balance at end of year 189.8 122.5 1.6 313.9
Accumulated depreciation
Depreciation at beginning of year (57.5) (20.9) (0.8) (79.2)
Disposals/retirements of assets 10.5 32.8 - 43.3
Depreciation charge for the year (30.1) (42.5) - (72.6)
Translation differences (0.3) - - (0.3)
Accumulated depreciation at end of year (77.4) (30.6) (0.8) (108.8)
Net book value at end of year 112.4 91.9 0.8 205.1
2024
€m Buildings Vehicles Other assets Total
Cost
Balance at beginning of year 144.5 72.9 1.4 218.8
Additions 46.2 55.2 0.1 101.5
Disposals/retirements of assets (19.7) (29.4) - (49.1)
Translation differences (1.2) (0.1) (0.1) (1.4)
Balance at end of year 169.8 98.6 1.4 269.8
Accumulated depreciation
Depreciation at beginning of year (45.6) (13.1) (0.8) (59.5)
Disposals/retirements of assets 15.7 28.0 - 43.7
Depreciation charge for the year (28.3) (35.7) (0.1) (64.1)
Translation differences 0.7 (0.1) 0.1 0.7
Accumulated depreciation at end of year (57.5) (20.9) (0.8) (79.2)
Net book value at end of year 112.3 77.7 0.6 190.6
Financial Statements
Notes to the Consolidated Financial Statements continued
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Note 12 Depreciation and amortisation
€m Note 2025 2024
Property, plant and equipment
Alarm equipment 212.2 200.5
Other 28.2 26.5
Total property, plant and equipment 17 240.4 227.0
Right-of-use assets
Buildings 30.1 28.3
Vehicles and other assets 42.5 35.8
Total right-of-use assets 11 72.6 64.1
Customer portfolio
Customer portfolio - Business Combinations acquired intangibles 422.9 435.9
Customer portfolio - Business Combination Variable sales commissions1 70.4 93.2
Total customer portfolio - Business combinations 493.3 529.1
Customer portfolio - Variable sales commissions 119.2 99.7
Total customer portfolio 19 612.5 628.8
Other intangible assets
Technology rights - Business combinations 22.4 22.9
Technology and other 1.2 1.6
Total technology and other 23.6 24.5
Internally developed intangible assets 111.9 107.6
Trademarks 17.1 16.7
Total other intangible assets 20 152.6 148.8
Total depreciation and amortisation 1,078.1 1,068.7
1) Relates to amortisation of variable sales commissions assets that were on the balance sheet prior to the 2020 Business Combination. As these costs would have been
amortised as an operating cost absent the 2020 Business Combination, it is considered more appropriate to include the related amortisation in operating profit and not as
an acquisition related SDI.
Depreciation and Amortisation - Business Combinations
€m 2025 2024
Customer portfolio - Acquired intangibles 422.9 435.9
Technology rights 22.4 22.9
Trademarks 17.1 16.7
Total1 462.4 475.5
1) The purpose of separating the Business Combinations impact is to reflect the operating result absent acquisition related amortisation (mainly due to the 2020 Business
Combination) and present them separately. Refer to section 'Alternative performance measures and other performance metrics' and 'Alternative performance measures
reconciliation' for more details.
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Depreciation and amortisation are reflected in the income statement as follows:
€m 2025 2024
Cost of sales 382.5 342.5
Selling and administrative expenses 695.6 726.2
Total 1,078.1 1,068.7
Note 13 Financial income and expenses
€m 2025 2024
Interest income, other 2.0 1.9
Fair value changes in derivatives - 16.9
Other financial income - 9.2
Financial income 2.0 28.0
Interest cost, borrowings (353.3) (424.0)
Interest cost, leasing (10.4) (8.3)
Interest cost, factoring (20.2) (34.5)
Interest cost, other (2.7) (5.0)
Fair value changes in derivatives (11.4) -
Prepaid financing fee (25.3) (4.6)
Bond call premium (10.6) -
Bank charges (24.1) (24.8)
Exchange rate differences, net (35.5) (10.7)
Other financial expenses (3.4) (11.6)
Financial expenses (496.9) (523.5)
Financial income and expenses (494.9) (495.5)
Details of borrowings are presented in note 25 Borrowings.
Financial Statements
Notes to the Consolidated Financial Statements continued
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Note 14 Taxes
Tax (expense)/credit
€m 2025 2024
Current tax1 (118.2) 60.3 % (119.3) 63.4 %
Deferred tax2 58.5 (29.8) % 122.5 (65.1) %
Total (59.7) 30.4 % 3.2 (1.7) %
1) In 2025 and 2024, the total amount of current tax was related to overseas.
2) Of this, €8.3m and (4.2)% (€(3.1)m and 1.7% in 2024) related to the UK and €50.2m and (25.6)% (€125.6m and (66.8)% in 2024) related to overseas.
Reconciliation of effective tax and tax rate
€m 2025 2024
Profit or (loss) before tax (196.2) (188.1)
Tax according to the applicable tax rate for the parent company,
25.0% (20.6% in 2024) 49.0 (25.0) % 38.7 (20.6) %
Difference between tax rate in United Kingdom (Sweden in 2024) and
weighted tax rates applicable to foreign subsidiaries 15.2 (7.7) % 17.0 (9.0) %
Non-taxable income 2.1 (1.1) % 18.4 (9.8) %
Non-deductible expenses (80.9) 41.2 % (79.8) 42.4 %
Recognition and utilisation of tax losses 3.2 (1.6) % (24.2) 12.9 %
Tax attributable to prior periods (2.9) 1.5 % 51.2 (27.2) %
Effect of tax rates changed (22.5) 11.5 % 0.7 (0.4) %
Tax not based on income (25.2) 12.8 % (18.2) 9.7 %
Other items 2.3 (1.2) % (0.6) 0.3 %
Total (59.7) 30.4 % 3.2 (1.7) %
Changes in tax rates
As of 2025, the Group has a new parent company with its registered office in the UK (previously Sweden). This change has affected
the statutory tax rate in 2025, which has increased from 20.6% in Sweden to 25.0% in the UK. During the financial year beginning
1 January 2025, changes in enacted tax rates resulted in a limited remeasurement of certain deferred tax balances, primarily
reflecting the impact of progressive tax rate systems in specific jurisdictions. No other material legislative changes affecting the
Group’s tax position were identified during the period. In 2024, deferred tax balances were also adjusted to reflect developments
in progressive tax rate systems in certain jurisdictions.
Uncertainty over income tax treatments
Verisure operates in various countries and is subject to taxation where the legislation is often complex and subject to
interpretation by management and the government authorities.
Due to uncertainty regarding the appropriate tax treatment among our entities, management has estimated the most likely
outcome and recognised a tax provision. The provision is reported in the current tax liabilities on the Consolidated Statement of
Financial Position, reflecting the amount expected to be payable in the event of unfavourable tax ruling.
OECD Pillar Two model rules
With effect from 1 January 2024, the Group is subject to the OECD Pillar II GloBE Rules which has implemented a global minimum
effective tax regime. The Group applies the IAS 12 exception to recognising and disclosing information about deferred tax assets
and liabilities related to Pillar II income taxes.
The transitional safe harbour relief has been applied in the majority of the Group’s tax jurisdictions. In 2024, the application of the
Pillar II rules did not result in any additional tax liability for the Group. This year, in certain limited circumstances, where the safe
harbour conditions are not met, the Group expects to be subject to additional Pillar II taxes, including qualified domestic minimum
top-up taxes. Sufficient tax accruals have been recognised in the year and the impact is expected to be immaterial to the Group’s
consolidated financial statements.
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Other comprehensive income
Tax recognised in other comprehensive income
€m 2025 2024
Deferred tax on re-measurements of defined benefit pension plans 0.0 0.3
Deferred tax on hedging reserve 3.2 (2.7)
Total 3.2 (2.4)
Deferred Taxes
The following are the major deferred tax assets and liabilities recognised by the Group:
Deferred tax assets attributable to:
€m 2025 2024
Property, plant and equipment 4.6 19.3
Lease liabilities 51.9 44.8
Customer portfolio 4.5 4.5
Other intangible assets¹ 16.2 14.1
Tax loss carry forwards 101.5 88.5
Pension provisions and employee related liabilities 29.7 10.4
Accrued revenue 4.6 4.2
Specific tax credit 38.9 52.0
Derivatives 6.9 7.0
Expected credit losses 10.9 10.2
Other temporary differences2 29.2 31.6
Total deferred tax assets 298.9 286.6
Netted deferred tax liabilities (220.7) (149.7)
Total 78.2 136.9
1) Relates to other intangible assets such as trademark and technology rights.
2) Other temporary differences relates to non-deductible interest, risk liabilities and provisions.
Deferred tax liabilities attributable to:
€m 2025 2024
Property, plant and equipment 12.0 26.5
Right-of-use assets 49.9 43.2
Goodwill 3.3 3.1
Customer portfolio 1,057.2 1,073.7
Other intangible assets¹ 51.4 37.0
Pension provisions and employee related liabilities 1.6 1.3
Prepaid revenue 26.4 19.1
Derivatives 1.4 4.6
Other temporary differences2 31.4 24.5
Total deferred tax liabilities 1,234.6 1,233.0
Netted against deferred tax assets (220.7) (149.7)
Total 1,013.9 1,083.3
1) Relates to other intangible assets such as R&D and IT.
2) Other temporary differences relates to bad debt and hyperinflation in Argentina.
Deferred tax related to tax loss carryforwards
Deferred tax assets are recognised in respect of tax loss carryforwards to the extent that the realisation of the related tax benefit
through taxable profits is probable. At the balance sheet date, the Group had unused tax losses of €673.1m (€722.5m in 2024)
available for offset against future profits. A deferred tax asset of €101.5m (€88.5m in 2024) has been recognised in respect of
€428.2m (€328.3m in 2024) of such losses based on existing taxable temporary differences generating future taxable profits against
which the assets can be recovered in the relevant jurisdictions. No deferred tax asset has been recognised in respect of the
Financial Statements
Notes to the Consolidated Financial Statements continued
114 Verisure plc | Annual Report 2025
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remaining tax loss carry forwards of €244.9m (€394.2m in 2024) where the likelihood that sufficient taxable profits are
not probable. The deferred tax assets related to tax losses carried forward which is dependent on future taxable profits in excess
of the profits arising from the reversal of existing taxable temporary differences related to subsidiaries which have suffered a loss
in their taxable result in either this or the previous year amount to €52.8m (€48.4m in 2024).
Deferred tax assets related to tax losses are mainly arising from Germany, the UK, Ireland, Argentina, and Brazil. Loss utilisation is
subject to annual caps in Germany, the UK and Brazil while in Argentina and Ireland, restrictions apply based on the source, trade,
or type of income. Tax loss carry forwards are unlimited in time in Brazil, Germany, Ireland, and the UK, but limited to five years
in Argentina. If the entities do not generate sufficient taxable profit in the future, these deferred tax assets may be subject
to impairment.
Deferred tax movements
Reflects the pre-offset figures as follows:
€m 2025 2024
Deferred tax assets 298.9 286.6
Deferred tax liabilities (1,234.6) (1,233.0)
Deferred tax assets/(liabilities), net (935.7) (946.4)
Deferred tax change analysis
A reconciliation of pre-offset deferred tax is shown in the table below:
€m 2025 2024
Balance at beginning of year (946.4) (1,075.1)
Movement recognised in the consolidated income statement 58.5 122.5
Directly to equity 3.2 (2.4)
Business combinations (35.9) -
Translation differences (15.1) 8.6
Balance at end of year (935.7) (946.4)
Note 15 Earnings per share
The calculation of basic and diluted earnings per share (EPS) is based on the following data:
€m 2025 2024
Net profit or (loss) for the period (255.9) (184.9)
Weighted average number of shares for basic EPS 854,484,363 800,000,000
EPS basic1, € (0.30) (0.23)
1) Earnings per share (EPS), basic, is calculated based on the weighted average number of outstanding shares in the period. The outstanding number of shares prior to the
listing on Nasdaq Stockholm on 8 October 2025 is based on the total number of Verisure plc shares (800,000,000) at the time of listing on Nasdaq Stockholm on 8 October
2025. The amount of shares prior to the listing on Nasdaq Stockholm has also been applied to the comparative period.
€m 2025 2024
Net profit or (loss) for the period (255.9) (184.9)
Weighted average number of shares for basic EPS 854,484,363 800,000,000
Dilution - shares subject to service conditions 509,515 -
Weighted average number of shares for diluted EPS 854,993,878 800,000,000
EPS diluted1, € (0.30) (0.23)
1) Earnings per share (EPS), basic and diluted, is calculated based on the weighted average number of outstanding shares in the period. The outstanding number of shares prior
to the listing on Nasdaq Stockholm on 8 October 2025 is based on the total number of Verisure plc shares (800,000,000) at the time of listing on Nasdaq Stockholm on 8
October 2025. The amount of shares prior to the listing on Nasdaq Stockholm has also been applied to the comparative period.
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Note 16 Transactions with related parties
Transactions between Group companies have been eliminated upon consolidation and, therefore, are not disclosed in these
consolidated financial statements. The related parties mainly consists of the Groups previous parent company Aegis Lux 2 S.à r.l.
and Genesys Cloud Services B.V., controlled by one of main shareholders of the Group, as well as key management and directors.
Disclosed below are all details of transactions between the Group and related parties. Refer to the Remuneration Report
presented in the Governance report in this document for further information on remuneration for key management personnel,
defined in the Group for the purpose of disclosure under IAS 24 ‘Related Party Disclosures’ as Board of Directors and CEO.
Transactions with related parties
€m 2025 2024
Purchase of services, Genesys Cloud Services B.V. (2.7) (4.0)
Shareholder contribution, Aegis Lux 2 S.à r.l. 3.6 1.7
Interest income, Aegis Lux 2 S.à r.l. 0.5 0.3
Balances with related parties
€m 2025 2024
Financial receivables¹ 19.7 -
Trade receivables² - 0.1
Other current receivables¹˒² - -
1) Financial receivables are disclosed in tables below.
2) There is no allowance for doubtful debts recognised in relation to the outstanding balances, and no associated credit loss costs have been recorded
Shares in related parties
Shares purchased by Employee Benefit Trust
€m 2025 2024
Balance at beginning of year - -
Shares purchased by Employee Benefit Trust 16.2 -
Fair value adjustment 1.3 -
Balance at end of year 17.5 -
Verisure plc established an Employee Benefit Trust (EBT) and funded the EBT with an irrecoverable gift to purchase certain
Management Shareholders’ direct or indirect interest in Aegis Lux 2 S.à r.l. on the day of listing. The value of the shares acquired
by the EBT amounted at the day of acquisition to €16.2m and the cost was based on the offering price at time of listing.
Loans to related parties
Loan to Aegis Lux 2 S.à r.l.
€m 2025 2024
Balance at beginning of year - 20.2
Loans advanced 15.0 -
Repayments received (15.0) (20.0)
Interest charged 0.5 0.3
Interest received (0.5) (0.5)
Balance at end of year - -
Loan to CFO
€m 2025 2024
Balance at beginning of year - -
Loans advanced 2.2 -
Balance at end of year 2.2 -
During the fourth quarter of 2025 Verisure held a non-current financial receivable of €2.2m in respect of a loan to a related party.
The loan originated from Aegis Lux 2 S.à r.l., the Company’s previous immediate parent undertaking, and was transferred to
Verisure plc at the reporting date.
Financial Statements
Notes to the Consolidated Financial Statements continued
116 Verisure plc | Annual Report 2025
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Note 17 Property, plant and equipment
2025
€m Alarm equipment Other Total
Cost
Balance at beginning of year 1,949.9 158.3 2,108.2
Additions 441.9 61.1 503.0
Business combinations 7.4 0.3 7.7
Disposals/retirements of assets (231.5) (8.9) (240.4)
Translation differences 2.2 0.1 2.3
Balance at end of year 2,169.9 210.9 2,380.8
Accumulated depreciation
Depreciation at beginning of year (463.5) (70.6) (534.1)
Disposals/retirements of assets 90.7 8.8 99.5
Depreciation charge for the year (212.2) (28.2) (240.4)
Translation differences (3.6) (0.3) (3.9)
Accumulated depreciation at end of year (588.6) (90.3) (678.9)
Net book value at end of year 1,581.3 120.6 1,701.9
2024
€m Alarm equipment Other Total
Cost
Balance at beginning of year 1,725.5 125.3 1,850.8
Additions 434.6 44.8 479.4
Disposals/retirements of assets (187.7) (10.3) (198.0)
Translation differences (22.5) (1.5) (24.0)
Balance at end of year 1,949.9 158.3 2,108.2
Accumulated depreciation
Depreciation at beginning of year (344.1) (56.0) (400.1)
Disposals/retirements of assets 68.0 10.4 78.4
Depreciation charge for the year (200.5) (26.5) (227.0)
Translation differences 13.1 1.5 14.6
Accumulated depreciation at end of year (463.5) (70.6) (534.1)
Net book value at end of year 1,486.4 87.7 1,574.1
Property, plant, and equipment mainly consist of alarm equipment installed at customer premises. Other equipment is mainly IT-
equipment and furniture.
Disposals/retirements of assets are recognised in the Consolidated Income Statement as cost of sales. The cost corresponds
mainly to the write-off of remaining capitalised equipment, from the time customers leave the portfolio or upgrade to our
new platform.
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Note 18 Goodwill and intangible assets with indefinite useful lives
Goodwill
€m 2025 2024
Balance at beginning of year 7,570.4 7,651.0
Translation differences 39.1 (80.6)
Business combination 93.3 -
Balance at end of year 7,702.8 7,570.4
The carrying amount of goodwill at the end of the year is related to the 2020 Business Combination as well as the acquisition of
ADT Private Security Services de Mexico S.A. de C.V. in 2025. The 2020 Business Combination refers to when Hellman & Friedman
in December 2020 reviewed and extended their long-term commitment to Verisure by completing a transfer of its indirect
shareholdings in Verisure. In accordance with IFRS 3 ‘Business Combinations’, this transfer of shareholdings resulted in a change
in control and a significant uplift in asset values due to the fair valuation adjustment at the time of transfer, and a recognition
of goodwill.
Intangible assets with indefinite useful lives
Intangible assets with indefinite useful lives relate to goodwill and a trademark, which are not amortised but rather tested for
impairment annually. The goodwill and the trademark have primarily arisen from the 2020 Business Combination. Refer to
note 20 Other intangible assets for further disclosures regarding the trademark.
Allocation of goodwill and intangible assets with indefinite useful lives
Goodwill acquired through business combinations is allocated to cash-generating units (CGUs) that are expected to benefit from
the synergies of the combination. For the purpose of impairment testing, the goodwill and the trademark are grouped at the
lowest level for which there are separately identifiable cash flows.
Goodwill and the trademark are allocated to the following CGUs:
2025
€m Goodwill Trademark
Iberia and Nordics 4,408.6 636.1
Other Europe 2,602.1 267.1
Latin America 692.1 48.3
Central and Other - 13.7
Total 7,702.8 965.2
2024
€m Goodwill Trademark
Northern Europe 4,312.0 478.2
Southern Europe and Latin America 3,258.4 487.0
Total 7,570.4 965.2
Update in CGUs and reallocation of goodwill
In 2025, the Group implemented several changes in how geographical clusters are managed and reported. The change resulted in
four defined geographical clusters (Iberia and Nordics, Other Europe, Latin America, and Central and Other) compared to the
previous two clusters (Northern Europe and Southern Europe and Latin America). These changes have triggered a redefinition of
our impairment CGUs which also resulted in a subsequent reallocation of goodwill. A relative value approach has been applied in
accordance with IAS 36 ‘Impairment of assets’ to reallocate the total carrying amount of goodwill between the four newly defined
CGUs. The allocation key used is the weighted value of the new CGUs’ forecasted 3-years average EBITDA aligned with the
underlying assumptions and estimates used for goodwill impairment testing. The reallocation also affected the underlying
currency denomination of goodwill.
Financial Statements
Notes to the Consolidated Financial Statements continued
118 Verisure plc | Annual Report 2025
===== SIDA 121 =====
Impairment tests
Based on the current available information used for the Group’s annual impairment test, the Group does not consider that there
are any reasonably possible scenarios that could arise that would result in an impairment charge being recognised. The
recoverable amount for each CGU has been determined based on value-in-use calculations. The value-in-use calculations are
based on cash flow forecasts derived from the most recent long-term financial plans presented to the Board of Directors. The
forecast period used in the model is five years for mature markets and ten years for our fast scaling entities and new markets.
The reason to use ten years on fast scaling entities and new markets is the long-term business model, where our experience
proves that the investments in portfolio growth in these markets require a longer period to catch the expected future profitability.
The principal assumptions in the value-in-use calculations are long-term sales growth rates, growth in Portfolio Services Adjusted
EBITDA and applied discount rates. For the period, subsequent to the long-term plan, cash flows generated by the CGUs have
been extrapolated on the basis of a projected annual growth rate of 2% (2% in 2024). The annual growth rate is based on historical
experience as well as long-term inflation expectations.
The discount rate applied in the impairment testing is the pre-tax weighted average cost of capital (WACC) for each CGU.
Assumptions relating to the WACC have been calculated individually for each country and weighted for each CGU based on the
countries’ share of revenue in the CGU. These assumptions have been determined based on both internal judgment and external
benchmarking. The pre-tax WACC rates applied for each CGU was 10.3% in Iberia and Nordics, 9.5% in Other Europe, 14.6% in Latin
America, and 12.8% in Central and Other, while the post-tax WACC for each CGU was 7.8% in Iberia and Nordics and Other Europe
as well as 11.5% in Latin America, and 11.7% in Central and Other. In 2024 the pre-tax WACC rates applied were 11.5% for Northern
Europe and 13.6% for Southern Europe and Latin America, while the post-tax WACC for each CGU were 9.4% for Northern Europe
and 10.9% for Southern Europe and Latin America. The same WACC and projected annual growth rate has been applied for
impairment testing on both goodwill and trademark.
The Group has conducted sensitivity analyses for each of the key assumptions used in the impairment tests. The sensitivity
analyses considered a 1 percentage point (ppt) isolated reduction to Portfolio Services Adjusted EBITDA and long-term growth
respectively, or a 1 ppt increase in discount rates. A deterioration of each of the main assumptions included in the calculation
of value-in-use would, in isolation, disclose that the recoverable amount exceeds the carrying amount in all sensitivity testing
conducted for the CGUs. Based on the this, the Directors have concluded that no impairment charge is required as of
31 December 2025.
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===== SIDA 122 =====
Note 19 Customer portfolio
2025
€m
Customer Portfolio -
Business combinations
Customer Portfolio -
Variable sales commissions Total
Cost
Balance at beginning of year 5,427.8 1,077.4 6,505.2
Additions - 324.1 324.1
Business combinations 113.8 - 113.8
Disposals/retirements of assets (17.0) - (17.0)
Translation differences 45.4 4.4 49.8
Balance at end of year 5,570.0 1,405.9 6,975.9
Accumulated amortisation
Amortisation at beginning of year (2,107.5) (196.2) (2,303.7)
Disposals/retirements of assets 17.0 - 17.0
Amortisation charge for the year (493.3) (119.2) (612.5)
Translation differences (1.3) (2.7) (4.0)
Accumulated amortisation at end of year (2,585.1) (318.1) (2,903.2)
Net book value at end of year 2,984.9 1,087.8 4,072.7
2024
€m
Customer Portfolio -
Business combinations
Customer Portfolio -
Variable sales commissions Total
Cost
Balance at beginning of year 5,474.2 790.4 6,264.6
Additions 0.5 301.5 302.0
Disposals/retirements of assets (3.1) (0.2) (3.3)
Translation differences (43.8) (14.3) (58.1)
Balance at end of year 5,427.8 1,077.4 6,505.2
Accumulated amortisation
Amortisation at beginning of year (1,585.7) (104.2) (1,689.9)
Disposals/retirements of assets 3.1 0.2 3.3
Amortisation charge for the year (529.1) (99.7) (628.8)
Translation differences 4.3 7.4 11.7
Accumulated amortisation at end of year (2,107.5) (196.2) (2,303.7)
Net book value at end of year 3,320.3 881.2 4,201.5
The net book value at year end includes €2,871.1m (€3,320.3m in 2024) relating to acquired intangibles arising from the 2020
Business Combination.
Management has assessed the recoverability of the carrying amount of the customer portfolio as of the acquisition date. The
customer portfolio is tested for impairment if there is an indication of impairment. Potential indicators are monitored on the
respective CGU level. During the year there have been no indications of impairment and therefore no impairment test on assets
with definite useful lives have been performed. Annual impairment tests are described in note 18 Goodwill and intangible assets
with indefinite useful lives.
Financial Statements
Notes to the Consolidated Financial Statements continued
120 Verisure plc | Annual Report 2025
===== SIDA 123 =====
Note 20 Other intangible assets
2025
€m Trademarks
Internally
Developed
Intangible assets
Technology and
other Total
Cost
Balance at beginning of year 1,098.5 546.1 121.6 1,766.2
Additions - 160.7 0.9 161.6
Business combinations 24.9 - - 24.9
Disposals/retirements of assets - (2.6) - (2.6)
Translation differences 0.4 (0.9) - (0.5)
Balance at end of year 1,123.8 703.3 122.5 1,949.6
Accumulated amortisation
Amortisation at beginning of year (67.4) (241.7) (97.3) (406.4)
Disposals/retirements of assets - 2.5 - 2.5
Amortisation charge for the year (17.1) (111.9) (23.6) (152.6)
Translation differences - 0.4 - 0.4
Accumulated amortisation at end of year (84.5) (350.7) (120.9) (556.1)
Net book value at end of year 1,039.3 352.6 1.6 1,393.5
2024
€m Trademarks
Internally
Developed
Intangible assets
Technology and
other Total
Cost
Balance at beginning of year 1,098.5 425.0 124.2 1,647.7
Additions - 138.5 0.4 138.9
Disposals/retirements of assets - (16.5) (2.8) (19.3)
Translation differences - (0.9) (0.2) (1.1)
Balance at end of year 1,098.5 546.1 121.6 1,766.2
Accumulated amortisation
Amortisation at beginning of year (50.7) (143.1) (75.8) (269.6)
Disposals/retirements of assets - 8.1 2.8 10.9
Amortisation charge for the year (16.7) (107.6) (24.5) (148.8)
Translation differences - 0.9 0.2 1.1
Accumulated amortisation at end of year (67.4) (241.7) (97.3) (406.4)
Net book value at end of year 1,031.1 304.4 24.3 1,359.8
The net book value at year end includes €965.2m (€965.2m in 2024) relating to an acquired trademark intangible that arose from
the 2020 Business Combination. This acquired trademark is not amortised but tested for impairment annually. Refer to note 18
Goodwill and intangible assets with indefinite useful lives for further details on impairment testing.
During the year there have been no indications of impairment and therefore no impairment test on assets with definite useful lives
have been performed.
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===== SIDA 124 =====
Note 21 Prepayments and accrued income
€m 2025 2024
Accrued sales income 3.9 2.3
Prepaid expenses 126.6 89.3
Other accrued income 13.2 2.4
Total 143.7 94.0
Note 22 Financial risk management
Financial instruments by category and valuation level
2025 2024
€m
Financial
Asset
Financial
Liability
Financial
Asset
Financial
Liability
Hedge accounting
FX forwards¹ 0.1 6.0 9.1 -
Fair value
FX swaps¹ 0.0 0.1 - 0.0
Cross currency swaps¹ - 3.8 12.6 -
Interest rate swaps¹ - 16.6 - 24.9
Other receivables, non-current² 28.9 - 11.4 -
Amortised cost
Trade and other receivables, non-current 144.2 - 123.8 -
Trade receivables, current⁴ 347.2 - 316.3 -
Other current receivables⁴ 33.6 - 27.6 -
Cash and cash equivalents 30.0 - 30.1 -
Long-term borrowings³˒⁵ - 4,841.8 - 7,445.7
Other non-current liabilities - 1.1 - 1.1
Trade payables, current⁴ - 179.5 - 176.0
Accrued expenses, current⁴ - 221.8 - 189.0
Short-term borrowings⁴˒⁵ - 264.6 - 300.8
Other current liabilities⁴ - 27.2 - 45.7
1) The derivatives measured at fair value are classified as level 2. Significant inputs are observable.
2) Other receivables, non-current, measured at fair value includes €17.5m (nil in 2024) classified as level 2 where significant inputs are observable. The observed input consists
of a market valuation of the underlying asset. They also include €11.4m (€11.4m in 2024) classified as level 3 where significant inputs are unobservable where cost has been
deemed an appropriate representation of fair value. The assets classified as level 3 are unchanged during the year.
3) The fair value of the bonds (Senior Secured Notes and Senior Unsecured Notes) amount to €2,184m (€4,673m on 31 December 2024) and fair value for the Term Loan B is
€1,257m (€2,536m on 31 December 2024), being the quoted market price at the balance sheet date. These are classified as level 1 since it is a quoted market price in an active
market. For the Group’s remaining borrowings, book values approximate to their fair values.
4) Due to the short-term nature of trade receivables, other current receivables, trade payables, accrued expenses, short-term borrowings and other current liabilities, their
carrying amount approximates to their fair value.
5) Details of borrowings are presented in note 25 Borrowings.
Financial Statements
Notes to the Consolidated Financial Statements continued
122 Verisure plc | Annual Report 2025
===== SIDA 125 =====
The valuation hierarchy applied is as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Other observable data than quoted prices included at Level 1, either directly (i.e. as price quotations) or indirectly (i.e.
derived from price quotations). The valuation techniques for currency related instruments are based on published forwards rates
and discounted contractual cash flows, and in terms of interest rate instruments the fair valuation is based on forward interest
rates prepared on the basis of observable interest data and discounted contractual cash flows.
Level 3: Non-observable market data. For certain assets and liabilities, the carrying amount is assumed to be a reasonable
approximation of fair value.
There have been no transfers of assets or liabilities between levels.
Derivatives
The Group’s operations expose it to financial risks arising from movements in foreign exchange rates and interest rates. The Group
uses derivative financial instruments in accordance with its Treasury Policy, which is approved by the Board of Directors. The
Treasury Policy sets out written principles governing the use of derivatives and is aligned with the Group’s overall risk
management strategy. Derivatives are entered into solely for risk management (economic hedging) purposes and are not used for
speculative or trading purposes.
Where the relevant requirements for hedge accounting are met, the Group designates derivatives as hedging instruments and
applies hedge accounting to reduce potential accounting mismatches between the hedging instrument and the hedged item.
Derivatives that are not designated in qualifying hedging relationships are, for accounting purposes, classified as ‘held for trading’
and measured at fair value through the income statement. Derivative assets and liabilities are presented as current when they are
expected to be realised or settled within 12 months after the end of the reporting period (and otherwise as non-current).
The Group currently uses the following derivatives:
• Interest rate swaps: to hedge exposure to variability in future cash flows attributable to changes in interest rates on the Group’s
variable-rate long-term debt.
• Cross currency swaps: to hedge foreign exchange risk associated with the Group’s financing activities by synthetically increasing
the proportion of SEK-denominated debt and better aligning the EUR/SEK debt mix with the Group’s EUR/SEK revenue mix.
• FX swaps: to manage short-term currency positions and liquidity within the Group’s multi-currency cash pool.
• FX forwards: to hedge forecast foreign-currency cash flows by locking in the exchange rate for exposures where the transaction
currency differs from the relevant subsidiary’s functional currency. The Group enters into USD forward contracts only against
EUR and SEK.
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Verisure plc | Annual Report 2025 123
===== SIDA 126 =====
The Group’s derivative financial instruments are recognised in the Consolidated Statement of Financial Position under the
following line items.
€m 2025 2024
Non-current liabilities
Interest rate swaps - held for trading 16.6 24.9
Cross currency swaps - held for trading 3.8 0.0
Total 20.4 24.9
Current liabilities
FX forwards - cash flow hedges 6.0 -
FX swaps - held for trading 0.1 0.0
Total 6.1 0.0
Current receivables
Cross currency swaps - held for trading - 12.6
FX swaps - held for trading 0.1 -
FX forwards - cash flow hedges 0.1 9.1
Total 0.2 21.7
Change in hedging reserve
€m
Change in cash
flow reserves
1 January 2024 (3.2)
Change in fair value of hedging instruments 13.2
Deferred tax (2.7)
31 December 2024 7.3
Change in fair value of hedging instruments (15.0)
Deferred tax 3.2
31 December 2025 (4.5)
Impact of hedge accounting on the Group’s financial position and comprehensive income
Hedging instruments outstanding at year end and the impact of currency risk on the Group’s financial position:
Derivatives – currency forwards - liabilities
€m 2025 2024
Carrying amount 6.0 -
Notional amount, currency USD 151.4 -
Maturity date January-December
2026 -
Hedge ratio 1:1 -
Change in discounted spot value of outstanding hedging instruments since inception of the
hedge 6.0 -
Change in value of hedged item to determine ineffectivness (6.0) -
Weighted average for outstanding hedging instruments in USD (including forward points) SEK 9.72: 1 USD
EUR 1.15 : 1 USD -
Financial Statements
Notes to the Consolidated Financial Statements continued
124 Verisure plc | Annual Report 2025
===== SIDA 127 =====
Derivatives – currency forwards - assets
€m 2025 2024
Carrying amount 0.1 9.1
Notional amount, currency USD 26.0 209.7
Maturity date July-September 2026 January-December 2025
Hedge ratio 1:1 1:1
Change in discounted spot value of outstanding hedging instruments since inception of
the hedge 0.1 9.1
Change in value of hedged item to determine ineffectivness (0.1) -9.1
Weighted average for outstanding hedging instruments in USD (including forward points)
EUR 1.19 : 1 USD
SEK 10.42: 1 USD
EUR 1.10 : 1 USD
Credit risk from trade receivables
Credit risk in the Group arises mainly from credit exposure to customers, including outstanding trade receivables, but also from
other financial assets such as cash and cash equivalents, derivative instruments and other investments. The maximum exposure to
credit risk corresponds to the carrying value of these assets in the Consolidated Statement of Financial Position, which amounted
to €542.5m as of 31 December 2025 (€497.6m in 2024).
The Group’s credit risk management is governed by a Credit Policy that includes the use of credit ratings, credit limits, defined
approval and decision-making processes, and active monitoring and management of overdue and doubtful receivables. The
objective of this policy is to ensure that sales are made only to customers with an appropriate credit profile. Although trade
receivables generally reflect the geographical footprint of the Group’s operations, the Group does not consider itself exposed to
significant customer concentration risk, as it serves a large and diversified customer base across multiple countries with no single
customer being individually significant. Overdue trade receivables are regularly reviewed to monitor any changes in credit risk, in
order to catch any credit-impaired financial assets. Trade receivables are written off where there is no reasonable expectation of
recovery. For further information, see note 24 Trade receivables.
Financial credit risk
The Group’s objective is to minimise counterparty credit risk arising from financial transactions while maintaining an appropriate
level of liquidity and financial flexibility. Financial credit risk is managed by conducting transactions only with external banks and
other financial counterparties that, to the extent possible, have investment-grade credit ratings. In accordance with the Group’s
Treasury Policy, excess liquidity may be invested only in Government securities with a minimum long-term sovereign credit rating
of Aa1 (Moody’s) and/or AA+ (Standard & Poor’s); or Money market funds with a minimum credit rating of Aa1 (Moody’s) and/or AA+
(Standard & Poor’s), managed by a Global Systemically Important Bank (G-SIB); or Bank deposits with banks holding a short-term
investment-grade credit rating. The Group had no investments of excess liquid funds as of 31 December 2025 and
31 December 2024.
Interest bearing liabilities per currency
€m 2025 2024
Long-term borrowings (principal amount)
EUR liabilities 4,991.9 7,475.5
SEK liabilities 5.9 136.4
Other currencies 24.8 21.9
Total 5,022.6 7,633.8
Short-term borrowings (carrying amount)
EUR liabilities 315.5 345.4
SEK liabilities 3.5 4.4
Other currencies 10.8 7.7
Total 329.8 357.5
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Verisure plc | Annual Report 2025 125
===== SIDA 128 =====
Credit facilities as of 31 December 2025
Credit frame Currency
Facility
amount €m
Available
amount €m Maturity
Revolving Credit Facility (RCF) Multi-currency (EUR) 950 884 2030
Term loan A EUR 1,290 - 2030
Term loan B EUR 1,250 - 2032
Senior Secured Notes EUR 450 - 2028
Senior Secured Notes EUR 525 - 2030
Senior Unsecured Notes (SUN) EUR 1,175 - 2029
Credit facilities as of 31 December 2024
Credit frame Currency
Facility
amount €m
Available
amount €m Maturity
Revolving Credit Facility (RCF) Multi-currency (EUR) 700 500 2027
Term loan B EUR 2,000 - 2028
Term loan B EUR 525 - 2030
Senior Secured Notes EUR 800 - 2026
Senior Secured Notes EUR 1,150 - 2027
Senior Secured Notes EUR 400 - 2027
Senior Secured Notes EUR 450 - 2028
Senior Secured Notes EUR 525 - 2030
Senior Unsecured Notes (SUN) EUR 1,175 - 2029
Senior Unsecured Notes (SUN) SEK 1,500 - 2029
Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its financial obligations as they fall due or that funding can only be
obtained at increased or high cost. The Group’s objective is to maintain sufficient liquidity at all times to meet its business needs.
Short-term liquidity is managed through a liquidity reserve referred to as Available Funds, defined as cash and cash equivalents,
bank deposits, short-term investments and the undrawn portion of committed credit facilities. Under the Group’s treasury policy,
Available Funds must at all times exceed a minimum threshold. Liquidity is closely monitored against rolling cash flow forecasts,
and the Group actively manages its funding and operations to ensure adequate headroom. The Group has a €950m Revolving
Credit Facility (RCF) in place (€700m in 2024). As of 31 December 2025, Available Funds – comprising undrawn committed RCF
amounts and cash and cash equivalents – amounted to €914m (€509m in 2024).
Refinancing risk
Refinancing risk is the risk that a significant portion of the Group’s funding matures within a short period, at a time when access to
funding may be restricted or available only at an increased cost. The Group mitigates the risk by actively managing and staggering
the maturity profile of its external funding. The Group has no material debt maturities until February 2028, when €450m falls due.
The table below presents a maturity analysis of the Group’s financial liabilities by relevant time buckets based on their contractual
maturities. It includes: Non-derivative financial liabilities and Derivative financial instruments (both gross- and net-settled) where
contractual maturities are necessary to understand the timing of cash flows. For interest rate swaps, cash flows have been
estimated using the spot interest rates applicable at the end of the reporting period.
Financial Statements
Notes to the Consolidated Financial Statements continued
126 Verisure plc | Annual Report 2025
===== SIDA 129 =====
Liquidity report
The below liquidity report consists of undiscounted future cash flows.
2025
€m Less than 1 year 1-2 years 3-4 years 5 years or more Total
Non-derivatives
Liabilities to credit institutions, principal amounts (148.5) (455.1) (2,990.0) (1,250.0) (4,843.6)
Interest payments borrowings (227.0) (424.8) (245.0) (97.0) (993.8)
Other non-current liabilities - (0.1) (1.0) 0.0 (1.1)
Lease liabilities (74.5) (99.3) (36.8) (22.8) (233.4)
Trade payables (179.5) - - - (179.5)
Accrued expenses and deferred income (649.5) - - - (649.5)
Other current liabilities (249.0) - - - (249.0)
Total non-derivatives (1,528.0) (979.3) (3,272.8) (1,369.8) (7,149.9)
Derivatives
Interest rate derivatives
Derivative contracts - inflow 20.2 40.3 31.4 - 91.9
Derivative contracts - outflow (27.1) (54.1) (42.1) - (123.3)
Foreign exchange derivatives
Derivative contracts - inflow 14.5 26.3 - - 40.8
Derivative contracts - outflow (14.8) (27.0) - - (41.8)
Total derivatives (7.2) (14.5) (10.7) 0.0 (32.4)
2024
€m Less than 1 year 1-2 years 3-4 years 5 years or more Total
Non-derivatives
Liabilities to credit institutions, principal amounts (80.8) (2,539.9) (3,755.9) (1,050.0) (7,426.6)
Interest payments borrowings (394.7) (701.0) (233.8) (22.8) (1,352.3)
Other non-current liabilities - - (1.1) - (1.1)
Lease liabilities (65.6) (87.8) (36.6) (26.3) (216.3)
Trade payables (176.0) - - - (176.0)
Accrued expenses and deferred income (576.8) - - - (576.8)
Other current liabilities (234.7) - - - (234.7)
Total non-derivatives (1,528.6) (3,328.7) (4,027.4) (1,099.1) (9,983.8)
Derivatives
Interest rate derivatives
Derivative contracts - inflow 26.8 41.6 - - 68.4
Derivative contracts - outflow (30.7) (47.7) - - (78.4)
Foreign exchange derivatives
Derivative contracts - inflow 13.1 - - - 13.1
Derivative contracts - outflow (14.6) - - - (14.6)
Total derivatives (5.4) (6.1) - - (11.5)
Interest rate risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the Group’s financial performance and cash
flow. Borrowings at variable interest rates expose the Group to cash flow interest rate risk, while borrowings at fixed interest rates
expose the Group to fair value interest rate risk. During 2025 and 2024, the Group’s variable-rate borrowings were denominated in
euro and Swedish krona. To reduce its exposure to interest rate risk, the Group enters into interest rate swaps to economically
hedge the variability of cash flows arising from the Group’s long-term debt. The Group targets a fixed-debt share of 50-75% of
total borrowings, including the effect of derivatives. Currently, all interest rate swaps are used to exchange floating-debt interest
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Verisure plc | Annual Report 2025 127
===== SIDA 130 =====
payments for fixed-debt payments. Excluding derivatives, approximately 45% of the Group’s borrowings (excluding factoring
financing) are at fixed rates. Including derivatives, approximately 65% of the Group’s borrowings (excluding factoring financing)
are at fixed rates. In addition, currency swaps are used to actively manage the Group’s cash positions and to reduce interest costs
charged by banks in the Group’s cash pool structures. Refer to note 25 Borrowings for more information. As of 31 December 2025,
based on current financing terms and derivatives in place, a 100-basis point increase in EURIBOR/STIBOR fixings would increase
the Group’s total interest expense by approximately €16m (negative impact).
Foreign currency risk
Transaction risk
The Group’s foreign exchange exposure arises primarily from forecast purchases of materials denominated in USD. The main
currency pairs are EUR/USD and SEK/USD. Exposures are continuously monitored and are partly hedged using foreign exchange
forward contracts. The Group’s policy is to hedge 25-75% of forecast USD material purchases on a 12-month rolling basis. In 2025,
the notional maturities of FX forwards corresponded to approximately 48% of USD material purchases for the year. Where the
relevant requirements are met, the Group applies hedge accounting to these contracts. As of 31 December 2025, the Group’s USD
exposure in trade payables amounted to $33.3m ($48.8m in 2024). Of this amount, $30.2m ($43.7m in 2024) relates to entities with
the EUR as functional currency and $3.1m ($5.1m in 2024) relates to entities with the SEK as functional currency.
The Group has no outstanding SEK-denominated loans at 31 December 2025. As of year-end 2024, SEK denominated loans
amounted to SEK 1,500m. The translation of non-EUR borrowings into EUR may impact the Group’s consolidated income statement.
To mitigate this exposure, the Group uses foreign exchange derivatives (cross currency swaps) to economically hedge the related
foreign exchange risk.
Interest rate and foreign currency sensitivity analysis
The sensitivity analysis table shows the estimated effect that a 100-basis-point increase or decrease in EURIBOR/STIBOR rates
would have on profit or loss and on total comprehensive income, excluding tax. The table also presents the impact of a 10%
change in the USD exchange rate relative to SEK/EUR.
The sensitivity of profit before tax related to transaction risk arises from the remeasurement of USD-denominated monetary items
(including financial assets and liabilities). The sensitivity of other components of equity (OCI) reflects changes in the fair value of
foreign exchange forward contracts that are designated as cash flow hedges.
Sensitivity per risk
2025 2024
Effect Effect
€thousand
Impact on profit
before tax
Impact on
other components
of equity, before
tax
Impact on profit
before tax
Impact on
other components
of equity, before
tax
Interest rate risk
Interest rate +1 percentage point (16.1) (16.1) (20.1) (20.1)
Interest rate -1 percentage point 16.1 16.1 20,1 20.1
Transaction risk
Currency rate SEK/USD +10 percentage point (0.3) 0.2 (0.5) 0.1
Currency rate SEK/USD -10 percentage point 0.3 (0.2) 0.5 (0.1)
Currency rate EUR/USD +10 percentage point (2.6) 0.4 (4.2) 0.8
Currency rate EUR/USD -10 percentage point 2.6 (0.4) 4.2 (0.8)
Capital management
The Group’s capital management objective is to ensure that its financial resources are appropriately structured to support ongoing
operations and future growth, provide financial resilience and comfort to lenders, and deliver sustainable returns to shareholders.
This includes maintaining adequate liquidity to fund investments for continued development, both organically and through
acquisitions. The capital that is being managed consists of shareholders' equity, borrowings, and cash and cash equivalents.
The Revolving Credit Facility (‘RCF’) includes a springing financial maintenance covenant. The Total Net Leverage Ratio is tested
only if drawings under the RCF exceed 45% (€427.5m) of total commitments (€950m) at a Revolving Test Date. If the covenant is
triggered, compliance is assessed semi-annually on 30 June and 31 December. The Total Net Leverage Ratio must not exceed 5.50:1
until 10 October 2028, and 5.00:1 thereafter.
Financial Statements
Notes to the Consolidated Financial Statements continued
128 Verisure plc | Annual Report 2025
===== SIDA 131 =====
As of 31 December 2025, RCF utilisation was below 45% and, accordingly, no financial covenant test was required. The Group
complied with all applicable covenants during the reporting period. Further information on net debt and leverage is provided in
note 25 Borrowings.
Note 23 Inventories
€m 2025 2024
Materials and consumables, gross 295.8 330.0
Provision for obsolescence (14.1) (13.8)
Inventory, net 281.7 316.2
The cost of inventory recognised as an expense and included in ‘cost of sales’ was €71.1m (€75.6m in 2024) in 2025.
Note 24 Trade receivables
Non-current
€m 2025 2024
Trade receivables before allowance for expected credit losses 180.8 152.5
Allowance for expected credit losses (44.6) (34.4)
Total 136.2 118.1
Current
€m 2025 2024
Trade receivables before allowance for expected credit losses 404.1 386.1
Allowance for expected credit losses (56.9) (69.8)
Total 347.2 316.3
Allowance for expected credit losses
€m 2025 2024
Balance at beginning of year 104.2 152.0
Allowance for expected credit losses 54.2 46.0
Receivables written off during the year as uncollectible¹ (54.8) (87.3)
Unused amounts reversed (1.8) (2.5)
Translation differences (0.3) (4.0)
Balance at end of year 101.5 104.2
1) The increase in receivables written off as uncollectible in 2024 is due to a clean up of old receivables. The clean up has not had any impact on the consolidated income
statement.
Customer credit losses recognised in the Consolidated Income Statement totalled to €56.7m in 2025 (€45.4m in 2024).
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Trade receivables and loss allowance – Months past due
2025 2024
€m
Gross carrying
amount – trade
receivables Loss allowance
Gross carrying
amount – trade
receivables Loss allowance
Not due 438.0 14.2 404.1 10.3
Past due 0–3 months 53.6 9.4 46.6 16.2
Past due 3–6 months 19.1 12.5 16.4 12.1
Past due 6–9 months 16.4 12.0 14.6 12.5
Past due 9–12 months 14.9 12.1 13.2 11.2
Past due >12 months 42.9 41.3 43.7 41.9
Total 584.9 101.5 538.6 104.2
Factoring
The carrying amounts of trade receivables include receivables which are subject to a factoring arrangement. Under this
arrangement the Group has transferred its rights to receive cash flows from the relevant receivables to a financing partner in
exchange for cash. However, the Group has substantially retained all of the risks and rewards of ownership. The Group therefore
continues to recognise the full receivable amount in the statement of financial position, amounting to €109.4m (€148.2m in
2024) as total trade receivables related to those under the factoring agreement. The liability related to the customer default risk
amount under the factoring agreement is presented as a financial liability under borrowings, amounting to €241.3m
(€289.5m in 2024).
Note 25 Borrowings
2025 2024
€m
Principal
amount
Adjustment
amortised costs
Carrying
amount
Principal
amount
Adjustment
amortised costs
Carrying
amount
Non-current liabilities
Secured
Senior Secured Notes 975.0 (6.2) 968.8 3,325.0 (18.8) 3,306.2
Term loan A 1,290.0 (9.8) 1,280.2 - - -
Term Loan B 1,250.0 (6.3) 1,243.7 2,525.0 (19.7) 2,505.3
Revolving Credit Facility 66.3 (8.1) 58.2 200.0 (5.9) 194.1
Unsecured
Senior Unsecured Notes 1,175.0 (6.7) 1,168.3 1,305.9 (9.4) 1,296.5
Liabilities to other creditors1 122.6 - 122.6 143.6 - 143.6
Lease liabilities 143.7 - 143.7 134.3 - 134.3
Long-term borrowings 5,022.6 (37.1) 4,985.5 7,633.8 (53.8) 7,580.0
Current liabilities
Accrued interest expenses 58.6 - 58.6 84.2 - 84.2
Liabilities to other creditors1 205.9 - 205.9 216.6 - 216.6
Lease liabilities 65.3 - 65.3 56.7 - 56.7
Short-term borrowings 329.8 - 329.8 357.5 - 357.5
Total 5,352.4 (37.1) 5,315.3 7,991.3 (53.8) 7,937.5
1) Liabilities to other creditors mainly consists of factoring liabilities. The non-current factoring liability amounted to €85.6m (€114.1m in 2024), and the current factoring
liability amounted to €155.7m (€175.3m in 2024).
The Group’s secured borrowings are jointly and severally guaranteed by some of the Group’s direct and indirect subsidiaries and
secured by liens on substantially all of their assets. An analysis of the security given is presented in note 28 Pledged assets and
contingent liabilities.
Financial Statements
Notes to the Consolidated Financial Statements continued
130 Verisure plc | Annual Report 2025
===== SIDA 133 =====
Refer to note 11 Leases for more information regarding leasing.
Borrowings, currency and interest rate profile
The currency and interest rate profile of outstanding borrowing principals, excluding factoring financing and after taking into
account the effect of the Group’s currency and interest rate hedging activities, was as follows:
Floating interest rate Fixed interest rate
2025 €m
Weighted
average
interest rate
% €m
Weighted
average
interest rate
%
Weighted
average
period of
which
rate is fixed,
years
Total
€m
EUR 1,422.5 5.1 % 3,150.0 4.8 % 3.6 4,572.5
SEK 275.0 5.4 % - - - 275.0
Total 1,697.5 - 3,150.0 - - 4,847.5
Floating interest rate Fixed interest rate
2024 €m
Weighted
average
interest rate
% €m
Weighted
average
interest rate
%
Weighted
average
period of
which
rate is fixed,
years
Total
€m
EUR 1,450.1 7.8 % 5,500.0 4.7 % 3.0 6,950.1
SEK 405.9 7.1 % - - - 405.9
Total 1,856.0 - 5,500.0 - - 7,356.0
Cash flows related to borrowings
Non-Cash changes 2025
€m
Carrying
amount
1 January
2025 Cash flows
Business
combination
Change in
adjustment
amortised
cost New leases
Foreign
exchange
movement
New
accrued
interest
Carrying
amount
31 December
2025
Long-term borrowings 7,445.7 (2,626.3) - 16.7 - 5.7 - 4,841.8
Short-term borrowings 216.6 (10.7) - - - - - 205.9
Accrued interest 84.2 (84.2) - - - - 58.6 58.6
Lease liabilities 191.0 (66.7) 6.3 - 78.5 (0.1) - 209.0
Total borrowings 7,937.5 (2,787.9) 6.3 16.7 78.5 5.6 58.6 5,315.3
Cash and cash equivalents (30.1) (2.1) - - - 2.2 - (30.0)
Total 7,907.4 (2,790.0) 6.3 16.7 78.5 7.8 58.6 5,285.3
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Non-Cash changes 2024
€m
Carrying
amount
1 January
2024 Cash flows
Change in
adjustment
amortised
cost New leases
Foreign
exchange
movement
New
accrued
interest
Carrying
amount
31 December
2024
Long-term borrowings 7,302.4 128.6 19.0 - (4.3) - 7,445.7
Short-term borrowings 199.4 17.2 - - - - 216.6
Accrued interest 87.8 (87.8) - - - 84.2 84.2
Lease liabilities 162.3 (61.0) - 90.4 (0.7) - 191.0
Total borrowing 7,751.9 (3.0) 19.0 90.4 (5.0) 84.2 7,937.5
Cash and cash equivalents (21.4) (9.8) - - 1.1 - (30.1)
Total 7,730.5 (12.8) 19.0 90.4 (3.9) 84.2 7,907.4
Note 26 Other provisions
2025
€m
Staff-related
provisions
Service related
provisions
Provisions for
legal claims
Other
provisions Total
Balance at beginning of year 3.5 0.9 37.0 0.7 42.1
Acquired through business combination - - - 2.9 2.9
Reclassifications - - (3.5) 3.5 -
Additional provisions 1.3 - 35.6 2.8 39.7
Utilised provisions (1.4) (0.9) (19.1) (1.1) (22.5)
Reversal of provisions not used - - (14.0) - (14.0)
Translation differences - - - - -
Balance at end of year 3.4 - 36.0 8.8 48.2
The timing of utilisation of the provisions is uncertain and have therefore been included in non-current liabilities. The Group
expects to utilise these provisions in more than 1 year, but in less than 5 years.
Legal claims
Legal claims provisions mainly relates to various general and product liability claims in the normal course of business. While the
Group cannot predict the outcome of individual legal actions, where the exposure can be reliably measured and an outflow of
economic benefits is considered probable, provisions are recognised following legal advice. There were no individually material
provisions as at 31 December 2025.
Note 27 Accrued expenses and deferred income
€m 2025 2024
Deferred income 211.2 208.6
Employee related costs 226.3 184.4
Marketing-related and other external services 58.2 63.3
Goods received 13.9 13.5
Legal claims 17.1 15.4
Other items 122.8 91.6
Total 649.5 576.8
Financial Statements
Notes to the Consolidated Financial Statements continued
132 Verisure plc | Annual Report 2025
===== SIDA 135 =====
Unsatisfied long-term customer contracts
When the Group receives a payment but has not yet delivered the promised service, a contract liability arises which consists of
deferred income for prepaid installation and services. A contract liability is accounted for until the performance obligation is
performed or falls due for the customer to use and is then reported as revenue.
Aggregate amount of the customer contracts revenue allocated to long-term customer contracts that are partially or fully
unsatisfied as of 31 December 2025 amounts to €824.7m (€823.7m in 2024). Management expects that 66.9% of the transaction price
allocated to the partly unsatisfied contracts as of 31 December 2025 will be recognised as revenue during the year 2026, 28.0% is
expected to be recognised during 2027 and 5.1% during 2028 or later. The Group does not include committed revenue with an
outstanding contract period of 12 months or less. Since the Group does not include all contracts and has cancellable subscriptions,
the amount of the outstanding unsatisfied performance obligations does not amount to expected revenue for future periods.
Liabilities related to contracts with customers
Customer contract liabilities comprise the Group’s obligation to fulfil performance obligations to its customers for which it has
received consideration in advance. This includes unearned revenue relating to prepaid services, installation revenue not
considered to be a separate performance obligation and other contract liabilities.
When a customer pays consideration in advance, before the transfer of services, the amount received is recognised under
prepayments in contract liabilities. The prepayments mainly include accrued subscriptions and prepayments according to
contracts. The Group has recognised the following liabilities related to contracts with customers.
2025 2024
€m
Assets related to
contracts with
customers
Liabilities related
to contracts with
customers
Assets related to
contracts with
customers
Liabilities related
to contracts with
customers
Balance at beginning of year 8.5 339.6 6.5 321.6
Prepayments taken as revenue (24.1) (282.1) (24.9) (300.2)
New prepayments 42.1 255.3 26.7 320.8
Translation differences (0.2) (0.7) 0.2 (2.6)
Balance at end of year 26.3 312.1 8.5 339.6
Balance as of 31 December consists of (and where this is reported in the Consolidated Statement of Financial Position):
€m 2025 2024
Non-current assets, included in Trade and other receivables 6.5 0.4
Current assets, included in Prepayments and accrued income 19.8 8.1
Total assets related to contracts with customers 26.3 8.5
Non-current liabilities, included in Other non-current liabilities 100.9 131.0
Current liabilites, included in Accrued expenses and deferred income 211.2 208.6
Total liabilities related to contracts with customers 312.1 339.6
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Verisure plc | Annual Report 2025 133
===== SIDA 136 =====
Note 28 Pledged assets and contingent liabilities
Pledged assets
€m 2025 2024
Net assets of subsidiaries 13,515.7 14,309.5
Bank accounts 6.5 6.2
Accounts receivables 253.5 363.4
Inventories 1.1 1.1
Other operating assets 68.2 65.8
Trademark 48.5 34.8
Endowment insurance 0.5 0.5
Contingent liabilities
€m 2025 2024
Guarantees 42.7 41.3
The Group has pledged shares in subsidiaries, certain bank accounts, trade receivables, intangible property rights, certain
inventory assets, rights under insurance contracts, rights under acquisition agreements, and rights for the Group as collateral for
bank borrowings, as disclosed in note 25 Borrowings. Guarantees relate mainly to warranties provided to suppliers.
Note 29 Events after the reporting period
There have been no significant events after the reporting period.
Financial Statements
Notes to the Consolidated Financial Statements continued
134 Verisure plc | Annual Report 2025
===== SIDA 137 =====
Report on the audit of the company financial
statements
Opinion
In our opinion, Verisure plc’s company financial statements:
• give a true and fair view of the state of the company’s
affairs as at 31 December 2025;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, including FRS 102 “The
Financial Reporting Standard applicable in the UK and
Republic of Ireland”, and applicable law); and
• have been prepared in accordance with the requirements
of the Companies Act 2006.
We have audited the financial statements, included within
the Annual Report, which comprise:
• the Parent Company Statement of Financial Position as at
31 December 2025;
• the Parent Company Statement of Changes in Equity for
the period then ended; and
• the notes to the financial statements, which include a
description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”), International
Standards on Auditing issued by the International Auditing
and Assurance Standards Board (“ISAs”) and applicable law.
Our responsibilities under ISAs (UK) and ISAs are further
described in the Auditors’ responsibilities for the audit of
the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We remained independent of the company in accordance
with the ethical requirements that are relevant to our audit
of the financial statements in the UK, which includes the
FRC’s Ethical Standard, as applicable to listed entities, and
the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by
the International Ethics Standards Board for Accountants
(IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
Our audit approach
Context
This is our first period as external auditors of the company
and the first accounting period following the corporate
restructuring in which Verisure plc became the new UK
ultimate parent company of the group. Verisure plc is a
public limited company incorporated under the laws of
England and Wales, and is listed on the NASDAQ Stockholm.
As such, the company financial statements are subject to an
audit in accordance with the requirements of the UK
Companies Act 2006.
Overview
Audit scope
• The audit engagement comprised the audit of the company
financial statements of Verisure plc.
Key audit matters
• Recoverability of investment in subsidiary
Materiality
• Overall materiality: Euro 101.5 million based on 1% of total
assets.
• Performance materiality: Euro 76.1 million.
The scope of our audit
As part of designing our audit, we determined materiality
and assessed the risks of material misstatement in the
financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’
professional judgement, were of most significance in the
audit of the financial statements of the current period and
include the most significant assessed risks of material
misstatement (whether or not due to fraud) identified by the
auditors, including those which had the greatest effect on:
the overall audit strategy; the allocation of resources in the
audit; and directing the efforts of the engagement team.
These matters, and any comments we make on the results of
our procedures thereon, were addressed in the context of
our audit of the financial statements as a whole, and in
forming our opinion thereon, and we do not provide a
separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Independent auditors’ report to the members of Verisure plc
Verisure plc | Annual Report 2025 135
===== SIDA 138 =====
Key audit matter
How our audit addressed the
key audit matter
Recoverability of investment in
subsidiary
The group undertook a corporate
restructuring transaction, which
involved Verisure plc becoming the
ultimate parent company of the
group in a share-for share exchange
with the existing shareholders of
Aegis Lux 2 S.à r.l.,. The transaction
involved a number of interconnected
legal steps. As a result, following the
restructuring, Verisure plc recognised
an investment in subsidiary
amounting to Euro 10,123.3 million.
The valuation of this investment is
significant to the company balance
sheet. As of 31 December 2025, the
market capitalisation of Verisure plc
has remained above the net assets
held by the parent company and
therefore management's impairment
assessment concluded that there is
no impairment. We determined that a
relatively high degree of resources
and effort were required in
performing procedures related to the
valuation risk that the carrying value
of the investment in subsidiary could
be impaired. This is due to the
judgement involved in the
impairment indicator assessment of
the material balances. Refer to note 4
to the parent company financial
statements.
We evaluated
management's assessment
regarding whether an
impairment trigger existed.
We found that
management's assessment
of no impairment trigger
arising was appropriate, as
the fair value of the group,
by reference to the market
capitalisation, supported
the investment balances.
We have performed
following procedures to
address the key audit
matter:
• We have obtained
management's
impairment assessment
and assessed its
reasonableness; and
• We assessed that there is
not an indicator of
impairment as the market
capitalisation of the
Group is greater than the
net assets of the parent
company as of 31
December 2025.
Based on above procedures
we concur with
management's conclusion
that no impairment is
required of the investment
in subsidiary balance.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we
performed enough work to be able to give an opinion on the
financial statements as a whole, taking into account the
structure of the company, the accounting processes and
controls, and the industry in which it operates.
The company is a holding company which exists to hold an
investment in a subsidiary that comprises the remainder of
the group. We tailored the scope of our audit to ensure that
we performed sufficient audit work to be able to give an
opinion on the financial statements as a whole, taking into
account the nature of the company, its accounting processes
and controls, and its relationship with the group.
The impact of climate risk on our audit
As part of our audit we made enquiries of management to
understand the extent of the potential impact of climate risk
on the company’s financial statements, and we remained
alert when performing our audit procedures for any
indicators of the impact of climate risk. Our procedures did
not identify any material impact as a result of climate risk on
the company’s financial statements.
Materiality
The scope of our audit was influenced by our application of
materiality. We set certain quantitative thresholds for
materiality. These, together with qualitative considerations,
helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures on the
individual financial statement line items and disclosures and
in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined
materiality for the financial statements as a whole as
follows:
Overall company materiality Euro 101.5 million.
How we determined it 1% of total assets
Rationale for benchmark applied We consider total assets to
be the most appropriate
benchmark to determine
materiality for the
company as it is the
ultimate holding company
of the group which
predominantly holds a
material investment in
subsidiary.
We use performance materiality to reduce to an
appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall
materiality. Specifically, we use performance materiality in
determining the scope of our audit and the nature and
extent of our testing of account balances, classes of
transactions and disclosures, for example in determining
sample sizes. Our performance materiality was 75% of
overall materiality, amounting to Euro 76.1 million for the
company financial statements.
In determining the performance materiality, we considered a
number of factors - the history of misstatements, risk
assessment and aggregation risk and the effectiveness of
controls - and concluded that an amount at the upper end of
our normal range was appropriate.
We agreed with those charged with governance that we
would report to them misstatements identified during our
audit above Euro 10.1 million as well as misstatements below
that amount that, in our view, warranted reporting for
qualitative reasons.
Financial Statements
Independent auditors’ report to the members of Verisure plc continued
136 Verisure plc | Annual Report 2025
===== SIDA 139 =====
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the
company’s ability to continue to adopt the going concern
basis of accounting included:
• Obtaining from management their assessment which
supports the Board's conclusions with respect to the
going concern basis of preparation of the group financial
statements, as the company's ability to continue as a going
concern is linked to the going concern of the group;
• Testing the mathematical integrity of the cash flow
forecasts and the models which extend through to the end
of 2027, reconciling these to the Board approved budgets;
• Identifying and assessing management's alternate
downside scenarios, and considering whether the
assumptions in the downside scenarios were reasonable
and appropriate;
• Assessing the reliability of cash flow forecasts by
comparing actual performance to forecasts, specifically
performing lookback testing over the budgeted results of
2025; and
• Assessing the completeness of the going concern
disclosures.
Based on the work we have performed, we have not
identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast
significant doubt on the company’s ability to continue as a
going concern for a period of at least twelve months from
when the financial statements are authorised for issue.
In auditing the financial statements, we have concluded that
the directors’ use of the going concern basis of accounting in
the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be
predicted, this conclusion is not a guarantee as to the
company's ability to continue as a going concern.
Our responsibilities and the responsibilities of the directors
with respect to going concern are described in the relevant
sections of this report.
Reporting on other information
The other information comprises all of the information in
the Annual Report other than the financial statements and
our auditors’ report thereon. The directors are responsible
for the other information. Our opinion on the financial
statements does not cover the other information and,
accordingly, we do not express an audit opinion or, except to
the extent otherwise explicitly stated in this report, any form
of assurance thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. If we identify an apparent material inconsistency
or material misstatement, we are required to perform
procedures to conclude whether there is a material
misstatement of the financial statements or a material
misstatement of the other information. If, based on the work
we have performed, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report based on these
responsibilities.
With respect to the Strategic report and Directors’ Report, we
also considered whether the disclosures required by the UK
Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the
Companies Act 2006 requires us also to report certain
opinions and matters as described below.
Strategic report and Directors’ Report
In our opinion, based on the work undertaken in the course
of the audit, the information given in the Strategic report
and Directors’ Report for the period ended 31 December 2025
is consistent with the financial statements and has been
prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the company
and its environment obtained in the course of the audit, we
did not identify any material misstatements in the Strategic
report and Directors’ Report.
Directors' Remuneration
In our opinion, the part of the Annual Directors'
Remuneration Report to be audited has been properly
prepared in accordance with the Companies Act 2006.
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Verisure plc | Annual Report 2025 137
===== SIDA 140 =====
Responsibilities for the financial statements and
the audit
Responsibilities of the directors for the financial
statements
As explained more fully in the Statement of Directors’
Responsibilities in Respect of the Financial Statements, the
directors are responsible for the preparation of the financial
statements in accordance with the applicable framework
and for being satisfied that they give a true and fair view.
The directors are also responsible for such internal control
as they determine is necessary to enable the preparation of
financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the company’s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate
the company or to cease operations, or have no realistic
alternative but to do so.
Auditors’ responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with ISAs
(UK) and ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect
material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of
detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry,
we identified that the principal risks of non-compliance with
laws and regulations related to UK tax legislation and the UK
Companies Act 2006, and we considered the extent to which
non-compliance might have a material effect on the
financial statements. We evaluated management’s incentives
and opportunities for fraudulent manipulation of the
financial statements (including the risk of override of
controls), and determined that the principal risks were
related to posting inappropriate journal entries and
management bias in accounting estimates. Audit procedures
performed by the engagement team included:
• Understanding and evaluating the design and
implementation of controls designed to prevent and
detect irregularities and fraud;
• Enquiries of management, those charged with governance
and those responsible for legal and compliance matters,
including the company's in-house legal function and
internal audit, to identify actual and potential litigation
and claims and any known or suspected instances of non-
compliance with laws and regulations and fraud;
• Reviewing minutes of meetings of those charged with
governance;
• Reviewing financial statement disclosures and testing to
supporting documentation to assess compliance with
applicable laws and regulations;
• Incorporating elements of unpredictability into the audit
procedures performed;
• Challenging assumptions and judgements made by
management in their significant accounting estimates and
judgements, particularly in relation to the key audit matter
above; and
• Identifying and testing journal entries based on our risk
assessment, in particular any journal entries posted with
unusual account combinations and evaluating the
business rationale of significant transactions outside the
normal course of business.
There are inherent limitations in the audit procedures
described above. We are less likely to become aware of
instances of non-compliance with laws and regulations that
are not closely related to events and transactions reflected
in the financial statements. Also, the risk of not detecting a
material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion.
Financial Statements
Independent auditors’ report to the members of Verisure plc continued
138 Verisure plc | Annual Report 2025
===== SIDA 141 =====
Our audit testing might include testing complete
populations of certain transactions and balances, possibly
using data auditing techniques. However, it typically involves
selecting a limited number of items for testing, rather than
testing complete populations. We will often seek to target
particular items for testing based on their size or risk
characteristics. In other cases, we will use audit sampling to
enable us to draw a conclusion about the population from
which the sample is selected.
A further description of our responsibilities for the audit of
the financial statements in accordance with ISAs (UK) is
located on the FRC’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part of our
auditors’ report.
As part of an audit in accordance with ISAs, we exercise
professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
company’s internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the company’s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of
the financial statements, including the disclosures, and
whether the financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the company to express an opinion on the financial
statements. We are responsible for the direction,
supervision and performance of the company audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Use of this report
This report, including the opinions, has been prepared for
and only for the company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies Act
2006 and for no other purpose. We do not, in giving these
opinions, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Verisure plc | Annual Report 2025 139
===== SIDA 142 =====
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to
you if, in our opinion:
• we have not obtained all the information and explanations
we require for our audit; or
• adequate accounting records have not been kept by the
company, or returns adequate for our audit have not been
received from branches not visited by us; or
• certain disclosures of directors’ remuneration specified by
law are not made; or
• the financial statements and the part of the Annual
Directors' Remuneration Report to be audited are not in
agreement with the accounting records and returns.
We have no exceptions to report arising from this
responsibility.
Other matter
We have reported separately on the group financial
statements of Verisure plc for the year ended 31 December
2025.
Christopher Boreham (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Reading
26 March 2026
Financial Statements
Independent auditors’ report to the members of Verisure plc continued
140 Verisure plc | Annual Report 2025
===== SIDA 143 =====
Verisure plc
Parent Company Statement of Financial Position
31 December 2025
€m Note 2025
Assets
Non-current assets
Investment in subsidiary 4 10,123.3
Other financial assets 11 17.4
Deferred tax assets 0.4
Amounts owed by related parties 11 2.2
Total non-current assets 10,143.3
Current assets
Cash and cash equivalents 5 0.5
Other receivables 6 63.4
Total current assets 63.9
Creditors: amounts falling due within one year 7 (38.6)
Net current assets 25.3
Total assets less current liabilities 10,168.6
Net assets 10,168.6
Equity
Share capital 10 1.0
Share-based compensation reserve 10 19.2
Other paid in capital 10 10,200.5
Accumulated losses 10 (52.1)
Total equity 10,168.6
In accordance with section 408 of the UK Companies Act 2006, Verisure plc has not disclosed its individual profit and loss account.
The net loss for the eight-month period of 2025, from time of incorporation on 9 May 2025 until 31 December 2025, amounted to
€52.1m and the value included IPO-related costs of approximately €51.0m.
The notes to the Company financial statements on pages 143 to 148 form an integral part of the Company financial statements.
The financial statements of Verisure plc (registered number 16440137), on pa
ges 141 to 148, were approved by the Board of
Directors and authorised for issuance on 26 March 2026. They were signed on its behalf by:
AUSTIN LALLY
Director
London, 26 March 2026
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Parent Company Financial statements
Verisure plc | Annual Report 2025 141
===== SIDA 144 =====
Parent Company Statement of Changes in Equity
€m Share capital Share premium
Share-based
compensation
reserve
Other paid in
capital
Accumulated
losses Total
Balance as of 9 May 2025 - - - - - -
Accumulated losses - - - - (52.1) (52.1)
Share reorganisation1 0.8 7,153.6 - - - 7,154.4
Share issuance2 0.2 3,099.8 - - - 3,100.0
Transaction costs in relation to share issuance - (52.9) - - - (52.9)
Share-based compensation plan - - 19.2 - - 19.2
Bonus issue 10,200.5 (10,200.5) - - - -
Capital reduction (10,200.5) - - 10,200.5 - -
Balance as of 31 December 2025 1.0 - 19.2 10,200.5 (52.1) 10,168.6
1) Mainly relates to the share-for-share issue on 7 October 2025, where Verisure plc issued new shares against a contribution by Aegis Lux 2 S.á r.l. of 100% of the shares in
Verisure Group Topholding AB.
2) Relates to the cash share issuance on 8 October 2025, i.e. a share issuance at the time of listing of shares on Nasdaq Stockholm.
The notes to the Company financial statements on pages 143 to 148 form an integral part of the Company financial statements.
Financial Statements
Parent Company Financial Statements Continued
142 Verisure plc | Annual Report 2025
===== SIDA 145 =====
Note 1 General information
Verisure plc (‘the Company’) is incorporated in England and
Wales under the UK Companies Act 2006. The address of the
registered office is 111 Buckingham Palace Road, London SW1W
0SR, England, and the nature of the Group's operations and
its principal activities are set out in the Strategic Report.
The Company was incorporated on 9 May 2025 as a private
limited company, Verisure Limited. On 16 September 2025
the Company re-registered as a public limited company
and adopted the name Verisure plc in accordance with the
provisions of the UK Companies Act 2006. The re-registration
had no impact on the Company’s operations or activities. On 7
October 2025, the Company acquired 100% of the share capital
of Verisure Group Topholding AB (‘VGT’) from Aegis Lux 2 S.à r.l.,
an immediate parent company, by way of a share-for-share
exchange. As a result of the transaction the Company obtained
control over VGT and its subsidiaries undertakings, and became
the ultimate parent company of the Verisure group.
For alignment and compliance with accounting principles,
please see section Basis of preparation in note 2.
The financial statements of Verisure plc have been
consolidated with the subsidiaries, and the consolidated
financial statements with disclosures for Verisure plc Group
are part of this annual report. Please see pages 91
to 134.
Note 2 Significant accounting policies
The significant accounting policies applied in the preparation of
the financial statements are set out below. These policies have
been consistently applied, unless otherwise stated.
a) Basis of preparation
The financial statements have been prepared under the
historical cost convention unless otherwise specified in these
accounting principles. It has also been prepared in accordance
with United Kingdom Accounting Standards, including Financial
Reporting Standard 102 ‘The Financial Reporting Standard
applicable in the United Kingdom and Republic of
Ireland’ (FRS 102) and the UK Companies Act 2006.
The financial statements are prepared on a going concern
basis, under the historical cost convention. The Company has
taken advantage of the exemption in section 408 of the UK
Companies Act 2006 from presenting its individual profit and
loss account.
The Company’s functional and presentation currency is EUR,
and all values are rounded to the nearest million, except where
otherwise indicated.
The Company has taken advantage of the following disclosure
exemptions under FRS 102:
• The requirements of Section 7 Statement of Cash Flows and
Section 3 Financial Statement Preparation paragraph 3.17(d).
• The requirements of Section 11 Financial Instrument
paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv),
11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A,
as the information is provided in the consolidated financial
statement disclosures.
• The requirements of Section 26 Share-Based Payment
paragraphs 26.18(b), 26.19 to 26.21 and 26.23, provided that
for a qualifying entity that is: (i) a subsidiary, the share-based
payment arrangement concerns equity instruments of
another group entity; (ii) an ultimate parent, the share-based
payment arrangement concerns its own equity instrument
and its separate financial statements are presented alongside
the consolidated financial statements of the group; and, in
both cases, provided that the equivalent disclosures required
by this FRS are included in the consolidated financial
statements of the group in which the entity is consolidated.
• The requirement of Section 33 Related Party Disclosures
paragraph 33.7.
During the period, the Company became the ultimate parent
of the Group as a result of a share-for-share exchange. The
transaction has been accounted for as a capital reorganisation
as outlined in note 4.
The Company has early adopted the amendments to FRS 102
issued in March 2024 (Periodic Review 2024). As these are the
Company’s first financial statements, there is no impact arising
from the early adoption of these amendments. These
amendments are effective for accounting periods beginning on
or after 1 January 2026, however early application is permitted
provided all amendments are applied simultaneously.
The financial statements are prepared for the period from 9
May 2025 to 31 December 2025. This period is shorter than one
year, as this is the Company’s first accounting period following
incorporation.
b) Going concern
As of 31 December 2025, the Company had €0.5m in cash and
net assets of €10,168.6m. The Directors have, at the time of
approving the financial statements, a reasonable expectation
that the Company has adequate resources to continue in
operational existence for a period of at least 12 months. The
Directors consider it is appropriate to adopt the going concern
basis of accounting in preparing the financial statements.
c) Foreign currency
At each balance sheet date foreign currency monetary items
are translated to the functional currency using the closing rate.
Non-monetary items measured at historical cost are translated
using the exchange rate at the date of the transaction and non-
monetary items measured at fair value are measured using the
exchange rate when fair value was determined.
Transactions in foreign currency are translated into the
functional currency using the exchange rates at the dates of the
transactions. Exchange rate differences on monetary items are
recognised in the Group’s consolidated income statement when
they arise.
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Notes to the Parent Company Financial statements
Verisure plc | Annual Report 2025 143
===== SIDA 146 =====
d) Employee benefits
The Company provides a range of benefits to employees,
including annual bonus arrangements, paid holiday
arrangements, and defined contribution pension plans.
e) Share-based compensation
The Company has issued equity-settled share-based
payments to certain employees within the Group, primarily
employees in subsidiary undertakings and therefore no
charge is recognised in the income statement for share-based
payments. The charge for share-based payments is instead
recognised as an increase in the cost of investment in
subsidiaries. The equity settled share-based payments are
measured at fair value at the date of grant and the value is
recognised on a straight line basis over the vesting period. At
each balance sheet date, the Company revises its estimate of
the number of equity instruments expected to vest.
f) Investment in subsidiary
Investment in subsidiary is recorded at cost, less accumulated
impairment losses if applicable.
Where an investment is acquired as part of a group
reconstruction and group reconstruction relief is applied,
the investment is initially recognised at the existing carrying
amount in the books of the transferor entity immediately prior
to the transfer rather than fair value. Where applicable, group
reconstruction relief or merger relief under the UK Companies
Act 2006 is reflected in the accounting for equity arising on the
issue of shares.
g) Impairment of non-financial assets
At each balance sheet date non-financial assets not carried at
fair value are assessed to determine whether there is an
indication of impairment. Where such an indication exists, the
investment is tested for impairment and any impairment is
recognised in profit or loss.
h) Financial instruments
i. Financial assets
Basic financial assets, including other receivables, and cash and
bank balances, are initially recognised at transaction price,
unless the arrangement constitutes a financing transaction,
where the transaction is measured at the present value of the
future receipts discounted at a market rate of interest. Such
assets are subsequently carried at amortised cost using the
effective interest method.
At balance sheet date, financial assets measured at amortised
cost are assessed for objective evidence of impairment. If an
asset is impaired, the impairment loss is the difference between
the carrying amount and the present value of the estimated
cash flows discounted at the asset’s original effective interest
rate. The impairment loss is recognised in profit or loss. If there
is a decrease in the impairment loss arising from an event
occurring after the impairment was recognised, the impairment
is reversed. The reversal is such that the current carrying
amount does not exceed what the carrying amount would have
been if the impairment had not previously been recognised.
The impairment reversal is recognised in profit or loss.
Other financial assets, including investments in equity
instruments which are not subsidiaries, associates or joint
ventures, are initially measured at fair value, which is normally
the transaction price. Such assets are subsequently carried at
fair value and the changes in fair value are recognised in profit
or loss, except that investments in equity instruments that are
not publicly traded and whose fair values cannot be measured
reliably are measured at cost less impairment.
Financial assets are derecognised when the contractual
rights to the cash flows from the asset expire or are settled,
substantially all the risks and rewards of the ownership of the
asset are transferred to another party, or despite having
retained some significant risks and rewards of ownership,
control of the asset has been transferred to another party who
has the practical ability to unilaterally sell the asset to an
unrelated third party without imposing additional restrictions.
ii. Financial liabilities
Basic financial liabilities, including trade and other payables,
are initially recognised at transaction price, unless the
arrangement constitutes a financing transaction, where the
debt instrument is measured at the present value of the future
receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost,
using the effective interest rate method. Fees paid on the
establishment of loan facilities are recognised as transaction
costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down. In this case, the fee is
deferred until the drawdown occurs. To the extent there is no
evidence that it is probable that some or all of the facility will
be drawn down, the fee is capitalised as a pre-payment for
liquidity services and amortised over the period of the facility
to which it relates.
Financial liabilities are derecognised when the liability is
extinguished, that is when the contractual obligation is
discharged, cancelled or expires.
i) Taxation
Tax is recognised in profit or loss except that a charge
attributable to an item of income and expense recognised as
other comprehensive income or to an item recognised directly
in equity is also recognised in other comprehensive income or
directly in equity respectively.
The current income tax charge is calculated on the basis of tax
rates and laws that have been enacted or substantively enacted
by the reporting date in the countries where the Company
operates and generates income.
i. Pillar Two
The Pillar Two legislation, implementing the global minimum
effective tax regime, is effective for the Verisure Group’s
financial year 2025. The Group applies the IAS 12 exception to
recognise and disclose information about deferred tax assets
and liabilities related to Pillar Two income taxes. Based on the
assessment made, the transitional Safe Harbour provisions
apply to Verisure plc for 2025 and, accordingly, no Pillar Two
top-up tax is expected to arise for the Company for the period.
Financial Statements
Notes to the Parent Company Financial Statements continued
144 Verisure plc | Annual Report 2025
===== SIDA 147 =====
ii. Deferred tax
Deferred Tax is provided on temporary differences between the
carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes. A
deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against
which the temporary differences can be utilised.
j) Share capital
Ordinary shares are classified as equity. Incremental costs
directly attributable to the issue of new ordinary shares are
shown in equity as a deduction from the proceeds. A bonus
issue represents a capitalisation of reserves. A capital reduction
is accounted for as a reclassification within equity, resulting in
a transfer from share capital to retained earnings.
k) Employee Benefit Trust
The Company operates an Employee Benefit Trust (‘EBT’), the
Verisure Employee Benefit Trust. The EBT holds ordinary shares
to satisfy obligations arising under the Company’s share-based
incentive schemes. The EBT is a Jersey-based trust which was
initially funded by irrevocable gift from the Company, which it
utilised to fulfil legacy share-based incentive schemes within
the Group, and in future will be utilised to acquire shares in
sufficient quantity to fulfil awards.
Ordinary shares held by the EBT are deducted from shareholders’
funds on the consolidated balance sheet at their nominal value.
Ordinary shares held by the EBT are included in the
consolidated balance sheet as a reduction in equity.
Note 3 Critical accounting estimates
and significant judgments
a) Key accounting judgments, estimates and assumptions
The preparation of the financial statements requires
management to make judgments, estimates and assumptions
that affect the reported amounts of assets and liabilities. Actual
results could differ from these estimates. Information about
such judgments and estimation is contained in the accounting
policies or the notes to the financial statements, and the key
areas are summarised below.
Impairment of investment in subsidiary
At each balance sheet date, non-financial assets not carried at
fair value are assessed to determine whether there is an
indication that the asset (or asset’s cash-generating unit) may
be impaired. If there is such an indication the recoverable
amount of the asset (or asset’s cash-generating unit) is
compared to the carrying amount of the asset (or asset’s cash-
generating unit). The recoverable amount of the asset (or
asset’s cash-generating unit) is the higher of the fair value less
costs to sell and value in use. Value in use is defined as the
present value of the future cash flows before interest and tax
obtainable as a result of the asset’s (or asset’s cash-generating
units) continued use. These cash flows are discounted using a
pre-tax discount rate that represents the current market risk-
free rate and the risks inherent in the asset.
If the recoverable amount of the asset (or asset’s cash-
generating unit) is estimated to be lower than the carrying
amount, the carrying amount is reduced to its recoverable
amount. An impairment loss is recognised in the profit and loss
account, unless the asset has been revalued when the amount
is recognised in other comprehensive income to the extent of
any previously recognised revaluation. Thereafter any excess is
recognised in profit or loss.
If an impairment loss is subsequently reversed, the carrying
amount of the asset (or asset’s cash-generating unit) is
increased to the revised estimate of its recoverable amount,
but only to the extent that the revised carrying amount does
not exceed the carrying amount that would have been
determined (net of depreciation or amortisation) had no
impairment loss been recognised in prior periods. A reversal of
an impairment loss is recognised in the profit and loss account.
Note 4 Investment in subsidiary
Investment in subsidiary (€m) 2025
At 9 May 2025 -
Share reorganisation/Share-for-share merger 7,154.4
Share issuance/Cash capital contribution 2,949.7
Share-based compensation plan 19.2
Net book value at end of 2025 10,123.3
During the period, the Company completed a share-for-share
exchange pursuant to which it issued 742,900,000 new ordinary
shares with a nominal value of €0.001 per share in exchange for
100% of the equity share capital of VGT, a company
incorporated in Malmö, Sweden. As a result of the transaction,
the Company became the ultimate parent company of the
Verisure Group. The transaction did not result in any change in
the ultimate ownership of the Group and was accounted for as
a capital reorganisation with Group Reconstruction Relief
applied under the UK Companies Act 2006. The investment in
VGT was recognised at €7,154.4m, being the existing carrying
amount of the investment in the books of the transferor entity
immediately prior to the transfer, as consideration under the
share-for-share exchange. In October 2025, an additional
shareholder cash contribution of €2,949.7m was made,
increasing the carrying value of the investment in VGT to
€10,104.1m. At 31 December 2025, the Company reviewed for
indicators of impairment of the investment in accordance with
FRS 102 Section 27 and no impairment was identified.
Summary of key details of the share-for-share merger:
Subsidiary
acquired
Date of
acquisition
Shares
issued
Nominal
value per
share (€)
Carrying amount
of investment
recognised (€)
Verisure
Group
Topholding
AB
7 October 2025 742,900,000 0.001 7,154,361,834
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Verisure plc | Annual Report 2025 145
===== SIDA 148 =====
Verisure Group Topholding AB and Verisure Employee Benefit Trust are directly held by Verisure plc. All other subsidiaries in the
table below are indirectly held.
Subsidiary name Reg. no Reg. office
Share of capital
and voting rights
Verisure Group Topholding AB1 559336-2071 Box 392, 201 23 Malmö, Sweden 100 %
Verisure Midholding AB (publ)1 556854-1402 Box 392, 201 23 Malmö, Sweden 100 %
Verisure Holding AB (publ)1 556854-1410 Box 392, 201 23 Malmö, Sweden 100 %
Verisure Group AB (publ)1 556222-9012 Box 392, 201 23 Malmö, Sweden 100 %
Verisure Sales Sverige AB1 556955-2978 Box 2511, 580 02 Linköping, Sweden 100 %
Verisure Sverige AB1 556153-2176 Box 2511, 580 02 Linköping, Sweden 100 %
Securitas Direct Sverige AB1 556893-9010 Box 314, 581 02 Linköping, Sweden 100 %
Verisure Logistics AB1 556702-0747 Box 392, 201 23 Malmö, Sweden 100 %
Verisure Innovation AB1 556723-5329 Box 392, 201 23 Malmö, Sweden 100 %
Verisure International AB1 559132-9569 Box 392, 201 23 Malmö, Sweden 100 %
ESML SD Iberia Holding S.A.U.1 A85537363 Calle Priégola, 2; Pozuelo de Alarcón, 28224 Madrid, Spain 100 %
Securitas Direct España S.A.U.1 A26106013 Calle Priégola, 2; Pozuelo de Alarcón, 28224 Madrid, Spain 100 %
Verisure Mexico S.A. de C.V.1 VME24099097J6 Blvd. Miguel de Cervantes Saavedra 259, 2º Piso Edificio B.
Granada, Miguel Hidalgo, Mexico
100 %
ADT Private Security Services de Mexico
S.A. de C.V.1
APS080728RT5 Avenida Insurgentes Sur 1106, Tlacoquemecatl Del Valle,
Benito Juàrez, Mexico
100 %
Verisure Perú S.A.C.1 12880228 Av. Primavera N° 1050 Oficina 501, Chacarilla del Estanque,
Peru
100 %
Verisure Italy S.R.L.2 RM-1375571 Viale dell'Oceano Pacifico 171/173, Italy 100 %
Verisure Brazil Monitoramento de
Alarmes SA1
11660106000138 Av. das Nações Unidas, 14401 - Torre Jatobá, 14, 15 and 16
floors - Parque da Cidade - Chácara Santo Antônio,
04794-000, São Paulo, Brasil
100 %
Securitas Direct Portugal Unipessoal
LDA2
505760320 Praceta Professor Alfredo de Sousa, 3, 1495-241, Algés,
Portugal
100 %
Verisure Chile SPA1 76058647-1 Enrique Foster Nº 20 oficina 301, las Condes, Chile 100 %
Verisure Argentina Monitoreo de
Alarmas S.A.1
24704 Avenida Eduardo Madero 900, Piso 16, C1106ACV, Argentina 100 %
Verisure SAS1 345006027 1 place du Général De Gaulle, 92160 Antony, France 100 %
Verisure Sàrl2 CHE300209613 Chemin Jean-Baptiste Vandelle 3A, Switzerland 100 %
Verisure Services Portugal Unip. LDA2 516730266 Praceta Professor Alfredo de Sousa, 3, 1495-241, Algés,
Portugal
100 %
Verisure Assistance SAS1 979091667 1 place du Général De Gaulle, 92160 Antony, France 100 %
OPSEC International BV1 74814990 Burgemeester Stramanweg 108F, 1101 AA Amsterdam 100 %
Securitas Direct BV1 17158925 Burgemeester Stramanweg 108F, 1101 AA Amsterdam 100 %
Verisure Installation and Monitoring BV1 71133607 Burgemeester Stramanweg 108F, 1101 AA Amsterdam 100 %
Verisure NV1 0459.866.904 Raketstraat 66, 1130 Brussels, Belgium 100 %
Verisure Academy BV1 0781.455.655 Raketstraat 66, 1130 Brussels, Belgium 100 %
Verisure Security BV1 0877.035.396 Raketstraat 66, 1130 Brussels, Belgium 100 %
Verisure Holding AS1 997434366 Drammensveien 211, 0281 Oslo, Norway 100 %
Verisure AS1 929120825 Drammensveien 211, 0281 Oslo, Norway 100 %
Verisure A/S1 25019202 Hovedvejen 2, 2600 Glostrup, Denmark 100 %
FAV A/S1 38049380 Hovedvejen 2, 2600 Glostrup, Denmark 100 %
Verisure Oy1 1773522-2 Televisiokatu 4, 00240 Helsinki, Finland 100 %
Verisure Services (UK) Limited1 8840095 Q12 Quorum Business Park Benton Lane, Newcastle Upon
Tyne, NE12 8BU, UK
100 %
Verisure Arlo Europe DAC1 658538 Regus City Gate (Office 216), 1000, Units 1201 & 1202, City Gate
Mahon,, Mahon, CORK, T12 W7CV, Ireland
100 %
Verisure Deutschland GmbH2 HRB85120 Balcke-Dürr-Allee 2, 40882 Ratingen, Germany 100 %
Verisure Ireland DAC1 696619 F2 Eastpoint Business Park Dublin 3 Ireland 100 %
Verisure Employee Benefit Trust - - -
1) Shareholding by ordinary shares.
2) Shareholding by participation quotas/ownership interest.
The following German domestic, fully consolidated subsidiary made use of the exempting provisions for the financial year 2025 according to the exempting provisions in
Section 264 (3) of the German Commercial Code HGB: Verisure Deutschland GmbH, Ratingen (AG Düsseldorf, HRB85120).
Financial Statements
Notes to the Parent Company Financial Statements continued
146 Verisure plc | Annual Report 2025
===== SIDA 149 =====
Note 5 Cash and cash equivalents
€m 2025
Cash and Cash Equivalents 0.5
Note 6 Other receivables
€m 2025
Amounts due from Group undertakings 63.4
Other receivables 0.0
Total 63.4
Of amounts due from group undertakings, €62.5m relates to an intragroup cash pool and the value is to be repayable upon
demand. The remaining value of amounts due from group undertakings relates to other intragroup receivables which will be
settled within less than 3 months after balance sheet date.
Note 7 Creditors: amounts falling due within one year
€m 2025
Accounts payable 4.5
Accruals and deferred income 3.8
VAT payable 1.1
Taxation and social security 0.0
Amounts owed to Group undertakings 29.2
Total 38.6
Amounts owed to Group undertakings are to be settled within less than 3 months after balance sheet date.
Note 8 Employees and directors
Verisure plc was incorporated in May 2025, and initially it was a dormant company. After the IPO process and the listing of the
Company at Nasdaq Stockholm in October 2025, a few employees have gradually been transferred from other Group entities to
Verisure plc. At 31 December 2025, Verisure plc had 8 full time employees, mainly related to management and administration, and
the average number of employee during the year equalled 2 full time employees. For 2025, total wages and salaries for the staff
amounted to €0.3m, social security costs equalled €0.1m and other pensions amounted to €0.0m.
Information about Directors’ and Director’s remuneration are disclosed according to the requirements of the UK Companies Act
2006, and the information is disclosed in the Remuneration Report presented in the Governance Report of this document.
Note 9 Share-based compensation
In October 2025, 8,745,146 shares were awarded to employees across the Group. 50% of these restricted share awards (RSUs) will
vest on 30 October 2026 and 50% will vest on 30 October 2027. The RSUs are conditional on continued employment through to the
applicable vesting dates and are therefore subject to forfeiture over the vesting period. The awards will be settled by delivering
shares to the participants. For more information, please see note 9 Share-based compensation for the consolidated financial
statements of Verisure Group.
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Note 10 Share capital and reserves
On May 9 2025, the Company was incorporated by one ordinary share of €1.00 in capital. On 29 August 2025, the sole ordinary share
was sub-divided into 1,000 ordinary shares of €0.001 each. On the same day, 57,099,000 additional ordinary shares of €0.001 each
were subscribed for in order to pay up the authorised minimum share capital required for the Company to be re-registered as a
public company limited by shares.
On 7 October 2025, the Company issued 742,900,000 shares against a contribution by Aegis Lux 2 S.à r.l. of 100% of the shares in
Verisure Group Topholding AB. The following day, the shares in Verisure plc were listed at Nasdaq Stockholm and the listing
process included issuance of an additionally 233,962,264 new shares. On 31 December 2025, the share capital of Verisure plc
equalled €1,033,962.26 deriving from 1,033,962,264 ordinary shares with a nominal ordinary value of €0.001. All shares have full
equal and voting rights and they are equally ranked for dividend. On potential return of capital, sale or liquidation, the
shareholders are entitled to the proceeds equally pro rated to shareholdings.
During the period, the Company completed a court-approved capital reorganisation comprising a bonus issue and a subsequent
capital reduction. The bonus issue resulted in the transfer of €10.2bn from share premium to share capital, followed by a capital
reduction transferring the same amount from share capital to other paid in capital. These transactions did not result in any change
in the number of shares in issue.
Note 11 Transactions with related parties
Related parties comprise the Company’s parent undertaking and other undertakings within the Group.
During the autumn, the Company, through its Employee Benefit Trust, acquired a financial asset in Aegis Lux 2 S.à r.l., the
Company’s immediate parent undertaking at the time of the transaction, at a cost of €16.2m. At 31 December 2025, the financial
asset was measured at fair value of €17.4m, with a fair value gain of €1.2m recognised in profit or loss.
At the balance sheet date, amounts owed by subsidiary undertakings totalled €0.9m, primarily relating to Group recharges.
Amounts owed to subsidiary undertakings totalled €29.2m, mainly comprising the re-invoicing of IPO-related costs and other
Group recharges.
The Company also held a non-current financial receivable of €2.2m in respect of a loan to a related party. The loan originated
from Aegis Lux 2 S.à r.l., the Company’s previous immediate parent undertaking, and was transferred to Verisure plc at the
reporting date.
Note 12 Events after the reporting period
On 2 January 2026, following the liquidation of the Company’s previous ultimate and immediate parent undertaking Aegis Lux 2
S.à r.l., the equity instruments held by the Employee Benefit Trust in Aegis Lux 2 S.à r.l. were converted to a holding of 1,247,625
ordinary shares in the Company. The other financial asset of €17.4m as of 31 December 2025 was subsequently derecognised in full.
The change in fair value between 31 December 2025 and 2 January 2026 of €0.2m is recognised in profit or loss. Subsequent
movements of €17.2m are recognised in equity as treasury shares.
Details of other significant events after balance sheet date, if any, are given in note 29 Events after the reporting period of the
Group financial statements.
Financial Statements
Notes to the Parent Company Financial Statements continued
148 Verisure plc | Annual Report 2025
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€m (unless otherwise stated) 2025 2024 2023 2022 2021
Revenue 3,745.4 3,408.0 3,090.0 2,827.0 2,508.8
Revenue growth1, % 9.9 % 10.3 % 9.3 % 12.7 % 16.7 %
Adjusted EBITDA1 1,708.0 1,534.0 1,340.6 1,151.8 1,047.8
Adjusted EBITDA margin1, % 45.6 % 45.0 % 43.4 % 40.7 % 41.8 %
Adjusted EBITDA incl. SDIs1 1,537.4 1,501.9 1,298.1 1,116.3 1,023.2
Adjusted EBITDA margin incl. SDIs1, % 41.0 % 44.1 % 42.0 % 39.5 % 40.8 %
Adjusted EBIT1 952.9 819.1 694.0 576.8 572.2
Adjusted EBIT margin1, % 25.4 % 24.0 % 22.5 % 20.4 % 22.8 %
EPS, basic and diluted², € (0.30) (0.23) (0.35) (0.30) (0.23)
Adjusted EPS¹˒³, € 0.35 0.23 0.17 0.11 0.18
Operating profit 298.7 307.4 213.0 133.9 130.9
Total net debt1 5,022.5 7,587.5 7,407.7 7,382.7 7,171.9
LTM net leverage¹, ratio 2.9x 4.9x 5.5x 6.4x 6.8x
L2QA net leverage¹, ratio 2.9x 4.8x 5.3x 6.0x 6.6x
L2QA secured net leverage¹, ratio 2.0x 3.8x 4.2x 4.8x 5.2x
Acquisition multiple1, ratio 3.7x 3.6x 3.7x 3.8x 3.4x
Portfolio services segment
Portfolio services revenue 3,267.8 2,947.8 2,635.3 2,358.2 2,043.7
Annualised recurring revenue (ARR)¹˒⁵ 3,447.6 3,068.1 2,746.0 2,477.7 2,174.5
Annualised recurring revenue growth¹, % 12.4 % 11.7 % 10.8 % 13.9 % 16.8 %
Portfolio services adjusted EBITDA1 2,409.1 2,141.9 1,885.3 1,694.3 1,477.4
Portfolio services adjusted EBITDA margin1, % 73.7 % 72.7 % 71.5 % 71.9 % 72.3 %
Total subscribers (end of period), 000s 6,171.4 5,611.7 5,173.0 4,752.1 4,274.8
Cancellation4, 000s 433.2 401.1 376.4 324.8 258.7
LTM attrition rate4, % 7.4 % 7.4 % 7.6 % 7.2 % 6.4 %
Quarterly attrition rate (annualised)⁴, % 7.4 % 7.3 % 7.6 % 7.5 % 6.3 %
Net subscriber growth4, 000s 559.7 438.7 420.9 477.3 510.9
Subscriber growth rate4, net, % 10.0 % 8.5 % 8.9 % 11.2 % 13.6 %
Monthly average number of subscribers during the period1, 000s 5,849.5 5,391.7 4,964.5 4,522.8 4,017.7
Average monthly revenue per user (ARPU)1, € 46.6 45.6 44.2 43.4 42.4
Recurring monthly cost (RMC)1, € 12.2 12.5 12.6 12.2 11.7
Monthly adjusted EBITDA per customer (EPC)1, € 34.3 33.1 31.6 31.2 30.6
Customer acquisition segment
Customer acquisition revenue 362.2 367.4 362.3 386.0 373.5
Customer acquisition adjusted EBITDA1 (723.0) (627.4) (551.1) (544.9) (421.1)
Customer acquisition capital expenditures¹ 597.9 580.3 577.5 583.7 546.4
New subscribers added (gross)4, 000s 872.6 839.8 797.3 802.1 769.6
Cost per acquisition (CPA)1, € 1,513.8 1,438.4 1,415.0 1,407.0 1,257.0
Adjacencies segment
Adjacencies revenue 115.4 92.8 92.4 82.9 91.7
Adjacencies adjusted EBITDA1 21.9 19.5 6.3 2.4 (8.4)
1) Alternative performance measure (APM). A definition and a reconciliation to the nearest IFRS equivalent is provided in the section 'Alternative performance measures and
other performance metrics' and 'Alternative performance measures reconciliation'.
2) Earnings per share (EPS), basic and diluted, is calculated based on the weighted average number of outstanding shares in the period. The outstanding number of shares
prior to the listing on Nasdaq Stockholm on 8 October 2025 is based on the total number of Verisure plc shares (800,000,000) at the time of listing on Nasdaq Stockholm on 8
October 2025. The amount of shares prior to the listing on Nasdaq Stockholm has also been applied to the comparative periods.
3) Adjusted earnings per share (EPS) is calculated based on the total number of Verisure plc shares following completion of the listing on Nasdaq Stockholm on 8 October 2025
and includes the issuance of new shares the same day. The amount of shares outstanding at 8 October 2025, including the shares issued the same day, has also been applied
to the comparative periods.
4) Other performance metrics. Refer to section 'Alternative performance measures and other performance metrics' for more details.
5) The Group has updated the definition of annualised recurring revenue (ARR). ARR is now calculated as End of Period Customer Portfolio x LTM trailing ARPU x 12. For the full
12 months of 2026, we intend to report ARR under both the previous and new definitions. 2025 ARR growth is 12.4% (2024: 11.7%) under the new definition and 12.4% (2024:
11.7%) under the previous definition. Q4 2025 ARR growth was 12.4% under the new definition compared to 13.0% under the previous definition.
Strategic Report Corporate Governance Financial Statements Sustainability Statement Additional Information
Five year financial overview
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Definitions of APMs
APM Definition
Acquisition multiple Initial investment made to acquire a new customer ('CPA', as defined below) divided by the
annualised monthly Adjusted EBITDA per subscriber ('EPC', as defined below).
Adjacencies adjusted EBITDA Operating profit, excluding depreciation and amortisation, retirement of assets and separately
disclosed items for the Adjacencies segment.
Adjusted EBIT Operating profit, excluding acquisition-related items, share-based compensation expenses and
separately disclosed items. Acquisition-related items relate to amortisation and depreciation
impact in operating profit related to the 2020 Business Combination¹. This impact is excluded
from operating profit to better reflect underlying business performance absent the 2020 Business
Combination¹.
Adjusted EBIT margin Adjusted EBIT in relation to revenue.
Adjusted EBITDA Operating profit, excluding depreciation and amortisation, retirement of assets, separately
disclosed items and share-based compensation.
Adjusted EBITDA incl. SDIs Operating profit, excluding depreciation and amortisation and retirement of assets.
Adjusted EBITDA margin Adjusted EBITDA in relation to revenue.
Adjusted EBITDA margin incl. SDIs Adjusted EBITDA incl. SDIs in relation to revenue.
Adjusted EPS Net profit or (loss) for the period attributable to the shareholders of the parent company, before
acquisition-related items, share-based compensation expenses and separately disclosed items
including tax impact of these components, divided by weighted average number of shares.
Acquisition-related items relate to amortisation and depreciation impact in net profit related to
the 2020 Business Combination¹. This impact is excluded to better reflect the underlying net
profit absent the 2020 Business Combination¹.
Adjusted Net profit or (loss) Adjusted Net profit or (loss) is defined as net profit or (loss) for the period, before acquisition-
related items, share-based compensation expenses, and separately disclosed items, including tax
impact of these components. Acquisition-related items relate to the amortisation and
depreciation impact in net profit related to the 2020 Business Combination¹.
Adjusted Operating Cash Flow Adjusted Operating Cash Flow before portfolio growth (as defined below) less organic portfolio
growth investment (the difference between the number of new customers and the number of
cancellations, multiplied by CPA).
Adjusted Operating Cash Flow before
portfolio growth
Adjusted EBIT, add-back of depreciation and amortisation and retirements of assets as well as
Customer acquisition Adjusted EBITDA, less capital expenditures, amortisation of lease liabilities,
and change in working capital for the period, before the attrition replacement investment (the
number of cancellations multiplied by CPA).
Annualised recurring revenue (ARR) Total number of subscribers in our portfolio at the end of the period, multiplied by the last twelve
months (LTM) average revenue per user ("ARPU" as defined below), multiplied by 12 months.
Annualised recurring revenue (ARR) - previous
definition
Total number of subscribers in our portfolio at the end of the period, multiplied by the monthly
average revenue per user (“ARPU” as defined below), multiplied by 12 months.
Annualised recurring revenue growth, % Annualised recurring revenue for the relevant period divided by Annualised recurring revenue for
the same period last year.
Cash conversion Ratio between Adjusted Operating Cash Flow (excluding or including change in working capital)
and Adjusted EBIT.
Cost per acquisition (CPA) Net cash investment to acquire a subscriber, including costs related to the marketing and sales
process, installation of the alarm system, costs of alarm system products and overhead expenses
for the Customer Acquisition process. The metric is calculated net of revenue from installation
fees charged to the subscriber and represents the sum of Adjusted EBITDA plus capital
expenditures in our Customer Acquisition segment on average for every subscriber acquired.
Customer Acquisition adjusted EBITDA Operating profit, excluding depreciation and amortisation, retirement of assets and separately
disclosed items for the Customer Acquisition segment.
Customer Acquisition adjusted EBITDA margin Customer Acquisition Adjusted EBITDA divided by revenue.
Customer Acquisition capital expenditures Purchases of equipment for new customers and direct incremental costs related to the
acquisition of customer contracts.
LTM net leverage Ratio of last 12 months’ Adjusted EBITDA and our Total net debt.
L2QA net leverage Ratio of last two quarters annualised (L2QA) Adjusted EBITDA and our Total net debt.
L2QA secured net leverage Ratio of last two quarters annualised (L2QA) Adjusted EBITDA and our secured net debt.
Monthly adjusted EBITDA per customer (EPC) Monthly adjusted EBITDA from our existing subscriber portfolio (Portfolio Services Adjusted
EBITDA) divided by the average number of subscribers.
Financial Statements
Alternative performance measures and other performance metrics
150 V e r i s u r e p l c | A n n u a l R e p o r t 2 0 2 5
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Monthly average revenue per user (ARPU) Portfolio Services segment revenue (consisting of monthly average subscription fees and sales of
additional products and services) divided by the average number of subscribers during the
relevant period.
Portfolio reinvestment rate The ratio of Customer acquisition Cost and Portfolio services Adjusted EBITDA less Portfolio
services capital expenditures.
Portfolio Services adjusted EBITDA Operating profit, excluding depreciation and amortisation, retirement of assets, and separately
disclosed items for the Portfolio Services segment.
Portfolio Services adjusted EBITDA margin Portfolio Services Adjusted EBITDA divided by revenue.
Recurring monthly cost (RMC) Represents the monthly cost per subscriber in our Portfolio Services segment, calculated as the
difference between ARPU and EPC.
Revenue growth Revenue for the relevant period divided by revenue for the same period last year.
Separately disclosed items (SDI) Separately disclosed items (SDIs) are income and costs that have been recognised in the
consolidated income statement which management believes, due to their nature, collective size
or incident, should be disclosed separately to give a more comparable view of the year-on-year
financial performance.
Total net debt Sum of financial indebtedness, defined as interest bearing debt from external counterparties,
lease liabilities, excluding accrued interest and liabilities from qualified receivables financing,
less the sum of available cash and financial receivables.
1) In December 2020, Hellman & Friedman reviewed and extended its long-term commitment to Verisure by completing the transfer of its indirect shareholdings in Verisure,
from Hellman & Friedman Capital Partners VII, L.P. to certain new Hellman & Friedman managed entities, including Hellman & Friedman Capital Partners IX, L.P. In
accordance with IFRS 3: Business Combinations, this transfer of shareholdings resulted in a change in control and a significant uplift in asset values due to the fair valuation
adjustments at the time of the transfer. The fair value adjusted assets, defined as acquisition-related items, are depreciated and amortised over their useful lives (when
applicable) in the consolidated financial statements of the Group. Since this transfer of indirect shareholdings did not have any impact on the underlying Verisure trading
activities, and in order to present in a more transparent view, the depreciation and amortisation charges arising on these new / incremental acquisition-related items have
been excluded when presenting Adjusted EBIT and Adjusted profit or (loss).
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Definition of other performance metrics
In addition to the APMs, we use a number of other performance metrics for assessing various aspects of the business performance.
These metrics are not derived from, nor directly reconcilable to, the Company’s Financial Statements prepared in accordance with
IFRS, and therefore do not qualify as APMs.
Other performance metrics Definition
Cancellations Number of cancelled subscriptions net of reinstates during the period, including cancellations on
acquired portfolios.
LTM attrition rate Number of net cancellations to our monitoring service in the last 12 months, divided by the
average number of subscribers during the last 12 months.
Monthly average number of subscribers
during the period
Represents the average count of active subscribers each month over the specified period. It is
calculated by summarising the number of subscribers at the end of each month and dividing by
the number of months in the period.
Net subscriber growth Total number of new subscribers added at the end of the period subtracted with number of
cancelled subscriptions.
New subscribers added (gross) Total number of new subscribers added at the end of the period.
New subscriber growth rate, net Total number of new subscribers added at the end of the period divided by the number of new
subscribers added at the relevant period.
Subscriber growth rate, net (%) Number of subscribers at the end of the period divided by the number of subscribers at the end
of the relevant period.
Quarterly attrition rate annualised, % The quarterly attrition rate is the number of terminated subscriptions to our monitoring service in
the quarter, annualised and divided by the average number of subscribers in the quarter.
Financial Statements
Alternative performance measures and other performance metrics continued
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Alternative performance measures reconciliation (unaudited)
Verisure applies the European Securities and Markets Authority’s (‘ESMA’) guidelines on alternative performance measures (‘APMs’).
Under these guidelines, an APM is a financial measure of historic or forecast earnings performance, financial position, or cash flow
that is neither defined nor specified in IFRS. The Group management team uses a number of key operating metrics, in addition to
IFRS financial measures, to evaluate, monitor, and manage our business. We believe that the APMs and other performance metrics
presented below, together with the measures defined under IFRS, provide important insight to the operations and strengthen the
understanding of the Group’s financial performance and trends. The APMs and other performance metrics as defined by Verisure
should not be compared with other performance measures of similar names used by other companies. The reason for this is that
the below APMs and other performance measures are not always defined in the same way and other companies may not calculate
them in the same way as Verisure does. We refer to the Prospectus published at www.verisure.com on 29 September 2025 for
detailed information on the reasons for the use of the APM measures presented below. The non-IFRS operational and statistical
information related to our operations included in this section have been derived from our internal reporting systems.
Reconciliation tables
A reconciliation of each of the APMs to its nearest IFRS measure is set out below.
Acquisition multiple
€, unless otherwise stated 2025 2024
Cost per acquisition (CPA) 1,513.8 1,438.4
Monthly adjusted EBITDA per customer (EPC) 34.3 33.1
Acquisition multiple (ratio) 3.7x 3.6x
Adjusted earnings per share (Adjusted EPS)
€m 2025 2024
Net profit or (loss) for the period (255.9) (184.9)
Adjustment of acquisition related items¹ 462.4 475.5
Deferred tax on acquisition-related items (92.8) (114.3)
Separately disclosed items affecting Net profit or (loss) 286.3 70.0
Tax impact of separately disclosed items affecting Net profit or (loss) (38.7) (11.7)
Adjusted Net profit or (loss) for the period 361.3 234.6
Adjusted number of shares outstanding at period-end 1,033,962,264 1,033,962,264
Adjusted EPS², € 0.35 0.23
1) Acquisition related items relate to amortisation and depreciation included in net profit or (loss) resulting from the 2020 Business Combination. Their impact is excluded to
reflect the underlying net profit absent the 2020 Business Combination, further described in definitions of APMs.
2) Adjusted earnings per share (EPS), basic and diluted, is calculated based on the total number of Verisure plc shares following completion of the listing on Nasdaq Stockholm
on 8 October 2025 and includes the issuance of new shares the same day. The amount of shares outstanding at 8 October 2025, including the shares issued the same day, has
also been applied to the comparative period.
Adjusted EBIT and Adjusted EBIT margin
€m 2025 2024
Operating profit 298.7 307.4
Adjustment of acquisition related items¹ 462.4 475.5
Separately disclosed items affecting EBIT² 170.6 36.1
Share-based compensation 21.2 -
Adjusted EBIT 952.9 819.1
Revenue 3,745.4 3,408.0
Adjusted EBIT margin (%) 25.4 % 24.0 %
1) Acquisition related items relate to amortisation and depreciation impact in operating profit related to the 2020 Business Combination, further described in definitions of
APMs. This impact is excluded from operating profit to reflect the underlying business performance absent the 2020 Business Combination.
2) Separately disclosed items excluding SDIs related to the 2020 Business Combination, further described in definitions of APMs.
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Adjusted EBITDA, Revenue growth, Adjusted EBITDA margin, Adjusted EBITDA incl. SDI and Adjusted EBITDA margin
incl. SDI
€m 2025 2024
Operating profit 298.7 307.4
Depreciation and amortisation 1,078.1 1,068.7
Retirement of assets 139.4 125.8
Separately disclosed items affecting EBITDA¹ 170.6 32.1
Share-based compensation 21.2 -
Adjusted EBITDA 1,708.0 1,534.0
Portfolio Services adjusted EBITDA 2,409.1 2,141.9
Customer Acquisition adjusted EBITDA (723.0) (627.4)
Adjacencies adjusted EBITDA 21.9 19.5
Revenue 3,745.4 3,408.0
Revenue growth (%) 9.9 % 10.3 %
Adjusted EBITDA margin (%) 45.6 % 45.0 %
Adjusted EBITDA (as above) 1,708.0 1,534.0
Add-back of adjustment items within EBITDA (170.6) (32.1)
Adjusted EBITDA incl. SDIs 1,537.4 1,501.9
Adjusted EBITDA margin incl. SDIs (%) 41.0 % 44.1 %
1) Refer to APM table Separately disclosed items for information on SDIs.
Annualised recurring revenue (ARR)
€, unless otherwise stated 2025 2024
Total subscribers (end of period), 000s 6,171.4 5,611.7
ARPU (LTM), € 46.6 45.6
ARR¹ 3,447.6 3,068.1
ARR Growth (%) 12.4 % 11.7 %
1) The Group has updated the definition of annualised recurring revenue (ARR). ARR is now calculated as End of Period Customer Portfolio x LTM trailing ARPU x 12. For the full
12 months of 2026, we intend to report ARR under both the previous and new definitions. 2025 ARR growth is 12.4% (2024: 11.7%) under the new definition and 12.4% (2024:
11.7%) under the previous definition. Q4 2025 ARR growth was 12.4% under the new definition compared to 13.0% under the previous definition.
Financial Statements
Alternative performance measures reconciliation (unaudited) continued
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