As we continue to move further into the second half of 2025, I want to share a look back at our journey so far this year and as well as lay out Yubico’s strategic path ahead.
Resurgence in order growth and key segment wins
While net sales declined for Q2, the end of the quarter saw a significant increase in growth in order booking. We’re seeing increasing demand from some of the world’s most security-conscious organizations, including leaders in high-tech, AI, and financial services.
As the threat landscape becomes more sophisticated, so does our resolve. Cybercriminals are now leveraging free and easily available AI tools to automate attacks and impersonate digital identities. The YubiKey continues to be the strongest defender against these advanced threats. Unlike other authentication technologies that fall short, our hardware keys provide a simple, impenetrable defense. The recent wave of SIM card attacks has further exposed the weakness of phone-based authentication, highlighting the need for a solution that cannot be remotely breached.
Strategic shift to subscription sales
My optimism is also fueled by a significant breakthrough in our subscription model, YubiKey as a Service. We are seeing more customers recognize the long-term value of protecting their users on a subscription basis. This shift is an investment in building enduring customer relationships, and while it impacts how we recognize revenue in the short term, our commitment to profitable growth remains steadfast.
A noteworthy milestone this quarter was a long-standing Yubico customer – one of the world’s top high-tech firms –expanded their partnership through a multi-year YubiKey-as-a-Service agreement. The deal includes converting their existing YubiKey fleet and scaling coverage company-wide to new users via subscription. We financed this rapid transition while still delivering a profit. Additionally, to support this growth, we also expanded YubiEnterprise Delivery, more than doubling coverage to reach both office and remote users quickly and seamlessly.
Outlook for the remainder of 2025
While the macroeconomic environment for the second half of 2025 remains uncertain due to the fluctuating markets, the drop in orders we experienced at the end of Q1 and into Q2 appears to have been a temporary setback. We are entering the second half of the year with renewed momentum and a healthy, growing pipeline, all of which reflects the profound trust our customers place in us.
Investor Day 2025
I’m excited to share that we’ll be hosting our first Investor Day on November 19. This event is an important opportunity to connect directly with our investors and analysts, offering a deeper look into our business model, the key drivers fueling our growth, and the strategic priorities shaping our future.
Our leadership team will also host a Q&A session, giving investors the chance to hear directly from us and gain further insight into our vision and plans. We look forward to an engaging and insightful day together.
