Market Segments: Cybersecurity, Network Monitoring, and Cloud Services

As a specialist IT integrator, Passus works with a portfolio of advanced technologies in cybersecurity and network performance monitoring. The company is a key integration partner for vendors like Splunk, Riverbed, and ManageEngine. In fact, Splunk (a leading cybersecurity and analytics platform) is one of Passus's top revenue drivers, with Passus being one of only three official Splunk partners in Poland. This is reflection of Passus's role in delivering complex security information and event management (SIEM) and network monitoring solutions to large clients.

Another core area is cloud computing services. Passus's group includes Chaos Gears, a unit specializing in AWS cloud projects - from migrating client systems to the cloud to ongoing infrastructure management and maintenance. In the AWS Services segment, the company executes cloud migrations, cloud security setups, and AI/data engineering projects for clients both in Poland and abroad. Notably, Chaos Gears is working toward achieving AWS Premier Consulting Partner status by 2026, a certificate that could further elevate Passus's profile and help drive international expansion in Western Europe and Central & Eastern Europe. This focus on cloud services, combined with expertise in cybersecurity and monitoring, gives Passus a multi-faceted presence in the IT solutions market.

Customer Base: Enterprise and Public Sector Focus

Passus's customer base skews toward large organizations, spanning both private enterprises and government institutions. The company explicitly concentrates on serving big corporate clients and public-sector entities in Poland (and to some extent abroad). A significant portion of its business comes from public procurement projects - in 2024, about 65% of the group's revenues were generated from contracts with public-sector clients. These often involve competitive tenders where price and quality are key factors in winning contracts (typically weighted 60% price and 40% quality and service criteria in Polish public tenders). This emphasis on government and quasi-government projects means Passus benefits from public investment in cybersecurity and IT upgrades, which remains robust. As CEO Bartosz Dzirba noted, public-sector demand for cybersecurity is fueled by ongoing threats (from hackers or even state actors) and continuous funding at national and EU levels to counter those threats

At the same time, Passus is aiming to grow its enterprise (commercial) client segment. The company has indicated that while public-sector projects dominate, they are working to secure at least one new large multi-year private or public client contract each year to diversify growth. Importantly, management also stresses that revenue is not overly dependent on any single contract. The majority of revenues from the public sector is spread across a range of projects rather than stemming from one or two deals. This suggests a customer base strategy of broadening engagements so that no single project's outcome can dramatically sway overall performance.

Financial Performance: First Half 2025 Highlights

Revenue Growth: Passus reported solid top-line growth in the first half of 2025. Consolidated sales for H1 2025 reached PLN 26.1 million, up about 12.6% year-over-year from approximately PLN 23.2 million in H1 2024. This double-digit revenue increase reflects healthy demand across the company's segments. In particular, the AWS cloud services division showed a notable rebound - the AWS segment contributed roughly PLN 7.9 million in sales in H1 2025 (around 30% of total revenue), compared to about PLN 6.1 million in the same period a year prior. This ~29% jump in cloud-services revenue suggests that the earlier slowdown in cloud projects (which impacted 2024) has started to reverse. In last twelve months terms, revenues in Q2 2025 increased 27% to PLN 109.8 MLN.

Source: Passus S.A. finanical statements inwestor.passus.com

Earnings and Margins: Profitability improved markedly in 2025's first half, although absolute profit levels remain modest. The group essentially broke even at the EBITDA level in H1 2025, posting an EBITDA of approximately PLN 0.1 million. While an EBITDA near zero might seem low, it is a significant improvement from the same period of 2024 when Passus had a negative EBITDA (an EBITDA loss of over PLN 2 million). The turnaround was driven by higher revenue and cost controls - for example, operating loss narrowed to PLN -0.84 million in H1 2025 from a PLN -3.23 million operating loss a year earlier. Net loss for the half was also reduced to PLN -0.84 million, about half the loss of the prior-year period. EBIT margins have improved as well. In H1 2025, the EBIT margin was 15.6%, compared to only 0.6% at the end of H1 2024.

Source: Passus S.A. finanical statements inwestor.passus.com

It's worth noting that Passus's business is highly seasonal (not visibly on above chart due LTM metrics), with the bulk of its annual sales and profits historically coming in the second half of the year (especially Q4). Management confirms that the fourth quarter is typically key - the company often realizes over half of its full-year revenue (and the majority of its profit margins) in Q4 alone. This seasonality is tied to client budgeting cycles, particularly in the public sector where many projects get finalized late in the year. Consequently, first-half results tend to be much weaker than second-half, and a near-breakeven H1 is not unexpected for Passus. The company's improving first-half margins, however, suggest an upside if second-half projects continue to ramp up as usual.

Operational Model: People-Centric and Asset-Light

One distinguishing aspect of Passus's model is its operational focus on human capital over physical capital. The company does not require heavy capital expenditures in manufacturing or equipment - instead, it invests in developing the skills and expertise of its engineering teams. Management has stated that the group essentially “does not invest in CAPEX, only in talent development,” reflecting an asset-light approach where growth is driven by intellectual property and know-how rather than owning physical infrastructure. This means that a significant portion of expenses is staff-related (engineers, consultants, certifications, etc.), and success hinges on attracting and retaining highly qualified IT specialists.

Passus appears to manage talent strategically. For example, the company recruits young engineers straight out of university (or even during studies) and relies on employee referral programs, which helps mitigate wage costs to some extent. By building a pipeline of skilled professionals early in their careers and fostering loyalty (through referral incentives and a motivational stock program), Passus can partially contain the wage pressure that is common in the IT industry. The business model also implies scalability through expertise - to take on more projects, Passus can grow headcount or acquire niche teams, rather than needing to build or buy expensive machinery. In fact, management has hinted at pursuing growth via acquisitions of specialized firms or teams to broaden competencies, underlining that “many possibilities” are being considered for expansion of skillsets and offerings.

Another benefit of this model is relatively low maintenance costs and depreciation, which supports healthier margins once revenues scale. With less capital tied up in fixed assets, Passus can potentially convert a higher portion of gross profit into operating profit, assuming personnel utilization remains high. The company's target profitability reflects this - management is aiming for an EBITDA margin of at least 10%, a goal they describe as conservative and not overly ambitious. In 2024, Passus actually achieved an EBITDA of PLN 14.1 million on PLN 107.5 million revenue, which was roughly a 13% EBITDA margin, suggesting that the 10% margin target is indeed attainable barring any downturn. This operational leverage - low capex and high-skilled labor - means that once fixed overhead and staff costs are covered, additional revenues can significantly boost earnings.

Growth Opportunities and Outlook

Despite a challenging macro environment in recent years, Passus's strategic plan outlines robust growth ahead. The company is projecting around 15% average annual revenue growth through 2026, as reaffirmed by the CEO. This growth is expected to come from multiple fronts:

• Cybersecurity Demand: The continued rise of cyber threats is driving organizations to invest more in IT security and network monitoring. Passus's core expertise in these areas positions it well to capture new projects as businesses and government agencies fortify their defenses. Management notes that both Poland and the EU are allocating significant funds to cybersecurity, which bodes well for sustained demand in the public sector especially. This secular trend provides a tailwind for Passus's integrator services.
• Cloud Services Expansion: After a dip in 2024, cloud infrastructure projects are rebounding for Passus. The AWS-focused segment (Chaos Gears) has seen revenues recover, and the company is placing “particular emphasis” on expanding its cloud and generative AI offerings on AWS in 2025. Achieving higher partner status with AWS by 2026 (the goal of reaching Premier Partner level) could open doors to larger international contracts. Additionally, as more enterprises migrate to cloud and seek hybrid cloud solutions, Passus's experience in cloud migration and security should translate into new business opportunities.
• Public Sector Pipeline: The digitization of government services and the availability of EU and state funding for IT modernization provide a growth pipeline in Passus's home market. The group has a strong track record in public-sector projects and can leverage this reputation to win new tenders. Importantly, public clients often engage in multi-year frameworks for IT services. Passus aims to onboard at least one major new client (public or private) every year on a long-term engagement, which over time would accumulate into a larger recurring client base.
• Upselling and Cross-Selling: As an integrator with a broad portfolio (security, monitoring, cloud, AI), Passus can cross-sell new solutions into its existing client base. For instance, a large enterprise client initially using Passus for network performance monitoring might later adopt the company's cybersecurity solutions, or vice versa. The development of new capabilities (like data engineering and AI services) within the AWS segment provides more products to offer clients. This organic growth within accounts could contribute meaningfully to the 15% annual growth target.

Below are revenue estimates for upcoming quarters based on communicated and signed contracted which company shared on ESPI platform. The real revenue is typically 33-36% higher than sum of signed contract, because revenue allocation difference also due to the fact that company doesn't need to communicate contacts smaller than PLN 1 MLN.

Source: Passus S.A. ESPI reports on biznes.pap.pl

Please be aware that above estimates are created using best-effort revenue allocation based on Passus's announcement. Assuming no revenue from communications (33%), the company should achieve approximately 29.5 million in Q3 (a 21.3% YoY increase).

Overall, Passus's growth outlook appears positive. The company delivered ~19% revenue growth in 2024 and started 2025 on a strong note (even noting a 34% surge in Q1 2025 revenue year-on-year). While the first half of 2025 was relatively soft in earnings due to normal seasonality, the second half - especially Q4 - is expected to drive the bulk of annual results. If Passus can maintain momentum in winning new contracts and capitalize on the favorable market trends in cybersecurity and cloud, its 15% CAGR goal through 2026 seems within reach.

Risks and Challenges

Like any growing tech-focused company, Passus faces several risks and challenges that investors should keep in mind:

• Wage Pressure and Talent Retention: The shortage of skilled IT engineers means rising salaries industry-wide. Passus feels this wage pressure and must continue to attract and retain top talent without eroding its margins. Competition for experts (especially in cybersecurity and cloud architecture) could increase personnel costs. The company mitigates this by hiring young talent and via referrals, but sustaining a high-quality team in a hot labor market remains an ongoing challenge.
• Seasonality of Revenues: Passus's business is inherently seasonal, heavily weighted toward the end of the year. A large portion of sales (often over 50% of annual revenue and the majority of profit) is realized in the fourth quarter. This means interim results can fluctuate significantly. Any delays in project awards or customer budget shifts into the next year could leave first-half results underwhelming. The company acknowledges that Q1-Q2 revenues are much lower than Q4, which affects interim profitability. Investors must be prepared for uneven quarterly performance and focus on full-year outcomes.
• Project-Based, Large Contracts Dependency: The nature of Passus's work is mostly project-based, rather than recurring subscription revenue. The company's income depends on securing new contracts (often large, bespoke projects) and successfully delivering them. A delay or loss of a single major contract in a given year can create a shortfall that isn't easily compensated by smaller deals. While Passus has a broad mix of projects at any time, the lumpiness of project revenues is a risk - some periods may see very low revenue if few contracts are billable. This also can impact cash flow timing, as big projects might involve delayed payments or milestone billing. The risk is partly mitigated by the company's effort to convert more clients to multi-year engagements and support contracts (which provide more predictable income), but dependency on winning new big projects each year remains a fundamental aspect of the business.
• Competitive and Tender Environment:In the public sector, contracts are awarded largely on a competitive tender basis with strict evaluation criteria. There is always a risk that Passus could be underbid on price or outscored on technical criteria by a competitor in key bids. The need to remain price-competitive (when 60% of tender points may come down to price) could pressure margins or growth if market pricing becomes aggressive. Additionally, larger international IT firms might try to move into the Polish market or cloud niche, posing longer-term competitive threats. Passus's niche expertise and local experience are advantages here, but the company must continuously prove its value to win contracts against both local and global competitors.
• Macroeconomic and Budget Factors: Broader economic conditions and public budget cycles can influence Passus's performance. For instance, if government IT spending were to tighten (due to economic downturn or shifting priorities), Passus's public sector-heavy revenue could be impacted. Inflation also plays a role - high inflation can increase costs (wages, operating expenses) and also drive up the value of contracts, but if not matched with pricing power, could squeeze profitability. On the positive side, EU funding availability for digital projects is a factor that could either bolster or, if absent, constrain some opportunities. The company does note, however, that it is not reliant on any single external subsidy program (for example, it “does not depend on KPO funds”, referring to Poland's recovery plan funds), implying it has a diversified customer funding base.

Conclusion

In summary, Passus S.A. presents itself as a nimble IT integrator with strong domain expertise in cybersecurity, network monitoring, and cloud services. The company operates a scalable, human-capital-intensive model that has begun to translate into improved financial performance. With a return to growth in its cloud segment and steady demand for security solutions, Passus is targeting an ambitious ~15% annual revenue growth through 2026 while striving to maintain double-digit EBITDA margins. The firm's focus on large enterprise and government clients has proven fruitful, leveraging Poland's digital security drive and public IT spending, although it also brings concentration risks and seasonality.

For retail investors interested in micro-caps, Passus offers exposure to the cybersecurity and cloud infrastructure trends via a company that is still relatively small-cap but growing. Key things to watch will be how well Passus converts its pipeline into new contracts (especially in the competitive public sector) and whether it can sustain profitability improvements towards its margin goals. Additionally, management's execution in retaining talent and possibly expanding through acquisitions will factor into its growth trajectory. While challenges such as wage inflation and lumpy revenues exist, Passus's recent track record, including a nearly 20% sales jump in 2024 and improved first-half 2025 results, indicates resilience. If the company delivers on its strategic plans, it could continue to benefit from the robust demand for cybersecurity and cloud services in the years ahead, making it an intriguing story in the tech-oriented segment of the Polish market. We recommend you following company announcements on our web site in Company News Hub section.

Company's Overview

Sygnity's capital group comprises the parent Sygnity S.A. and subsidiaries including Sygnity Business Solutions, Edrana Baltic UAB (acquired in February 2024), Sagra Technology Sp. z o.o. (acquired in March 2024) and DocLogix (acquired Jul‑2025). The group employs ~1 000 people and has offices across Poland and the Baltics.

Sygnity's operations revolve around designing, building and implementing IT systems for Polish and foreign clients. It organizes its activities into several verticals:

• Banking & financial services. They write bespoke software for banks (core banking platforms, digital channels, regulatory reporting, for example reporting platform for the reporting of fraudulent payments (Fraud Payment) under the AML PSD2 regulation), leasing firms and capital‑market participants.
• Utilities & energy - solutions for electricity/gas distributors and traders (billing, CRM, network management) and advanced metering infrastructure. The energy/utility segment was one of the fastest‑growing parts of the business in 2024.
• Industry & retail - ERP and warehouse‑management systems, automation of supply‑chain processes and embedded software for industrial clients.
• Public administration - e‑government solutions, tax and customs systems, platforms for local governments and social‑security agencies. For example systems such as WUP-Viator, Consular Systems (Karta Polaka).
• Newly acquired product lines - the acquisition of Edrana Baltic brought an ERP system popular in Lithuania and integrated HR/payroll modules; Sagra Technology develops a sales‑force automation (SFA) platform for consumer‑goods companies; DocLogix supplies document‑management and business process‑management software used by government agencies and corporate clients (its product centralises document storage and automates processes such as contract management, HR and risk management). These subsidiaries extend Sygnity's product portfolio and provide recurring licence and maintenance revenue.

Business model & revenue generation

Sygnity generates revenue mainly by developing and implementing proprietary software, integrating third‑party solutions, providing maintenance and outsourcing services and selling licences and subscriptions. Projects often involve long‑term contracts with banks, utilities or public institutions, which create recurring maintenance fees. The company also sells hardware and third‑party software when required by an implementation, although this is a relatively small portion of sales. Key revenue drivers include:

• Long‑term system‑integration contracts. Sygnity builds and integrates complex IT systems for banking, energy and government clients. Revenue is recognised over the life of the contracts.
• Licensing and SaaS subscriptions. The acquisitions of Sagra and DocLogix give Sygnity proprietary products delivered in a software‑as‑a‑service model. This increases predictable recurring revenue and margins.
• Maintenance and post‑implementation support. After delivering a system the company provides support, upgrades and regulatory adaptations; these fees are generally high‑margin.
• Customisation and consulting. Clients often need tailored functionality, training and system audits.

Sygnity's customer base is concentrated: a handful of large banks, state‑owned utilities and government agencies account for a major part of revenue. However, diversification is increasing through cross‑selling new products (e.g., Sagra's SFA system to retail companies or DocLogix's document‑management platform to industrial firms) and expansion into the Baltics via Edrana.

Cost structure analysis

Sygnity's cost base is dominated by employee expenses. Programming and implementation require specialised personnel and subcontractors. According to the mBank report on FY‑2024 results, cost of goods sold (COGS) was PLN 46 m in Q4 2024 versus revenue of PLN 90.3 m, implying a gross margin of 49 %. Below is a simplified breakdown of costs:

Cost category	Nature	Observations
Direct labour and subcontractors	Wages, salaries and benefits for software engineers, project managers and analysts, plus outsourcing of specific tasks	Largest single expense. Subcontracting is variable and depends on contract workload. Wage inflation in the IT sector represents a risk.
Cost of external licences / hardware	Purchase of third‑party software, cloud services and hardware resold to clients	Variable; typically billed with a small margin.
Selling expenses	Marketing and bid preparation; about 2 %-3 % of sales in recent quarters.
Administrative and general expenses	Corporate overhead, R&D and support functions; roughly 13 %-18 % of sales.
Depreciation and amortisation	Includes amortisation of intangible assets from acquisitions and right‑of‑use assets; IFRS 16 adoption affects EBITDA and EBIT reconciliation.
Financing costs	Interest on leases and bank loans; Sygnity carries minimal long‑term debt (long‑term liabilities fell to PLN 8.5 m at 31 March 2025).

Improving profitability has been a strategic priority. Management has phased out low‑margin contracts and renegotiated rates on existing projects. Consequently the gross margin increased from the mid‑30s to nearly 49 % in Q4 2024. In addition, selling expenses remained tightly controlled (~2 % of sales), and administrative expenses, although growing due to acquisitions, declined as a percentage of revenue compared with earlier quarters.

Revenue & income drivers

Events/trends that accelerate revenue and income growth

• 1. Market demand for digital transformation - Polish banks, utilities and government agencies continue to modernise their IT systems. This is evidenced by Sygnity's revenue growth of ~17 % YoY in Q1 2025, with net revenue rising to PLN 72.5 m compared with PLN 62.0 m in Q1 2024. New contracts in banking and energy boosted backlog.
• 2. Acquisitions expanding product portfolio - The 2024 acquisitions of Edrana Baltic and Sagra Technology increased full‑year revenue by PLN 13.6 m and PLN 21.9 m respectively and added PLN 2.2 m and PLN 3.6 m to net profit. Without these acquisitions, FY ‑ 2024 revenue growth would have been around 12 %, indicating organic growth.
• 3. Focus on high‑margin projects - Management deliberately exited or renegotiated low‑margin contracts, leading to a surge in gross profitability. mBank's analysis notes that Q4 2024 gross profit grew 83 % YoY to PLN 44.3 m, lifting the gross margin to 49 %. Adjusted EBITDA margin reached 20 % for FY‑2024.
• 4. One‑off gains - FY‑2024 results benefited from a favourable tax ruling concerning a 2008 VAT dispute, which contributed almost PLN 3 m to other operating income and PLN 2.6 m to interest income, lowering the effective tax rate to 8.1 %. Such non‑recurring items boosted net profit to PLN 60.5 m in 2024, up from PLN 49.9 m in 2023.
• 5. Strong balance sheet - At 31 March 2025 the group had equity of PLN 292.8 m and long‑term liabilities of just PLN 8.5 m. A net cash position enables continued investment and acquisitions without material financing costs.
• 6. Share‑buyback and dividend policy - In November 2023 Sygnity announced a small share‑buyback (up to 20 000 shares, ~0.09 % of capital) to service incentive programmes. In March 2023 the company adopted a dividend policy, signalling willingness to distribute a portion of profits to shareholders. However dividend yield is only ~1%

Factors/risks that can depress revenue and income

• 1. Cyclical IT spending and customer concentration - Sygnity's clients are concentrated in a few sectors. A slowdown in bank or utility spending could materially reduce new orders. Public‑sector budgets are influenced by politics and EU funding cycles.
• 2. Integration and execution risk - Successfully integrating Edrana Baltic, Sagra Technology and DocLogix is critical. Acquired companies must preserve customer relationships and product development momentum; failure could erode profits.
• 3. Rising labour costs and talent shortages - Poland's IT market is competitive; wage inflation could compress margins. Much of Sygnity's cost base consists of salaries and subcontractor fees.
• 4. price‑to‑earnings ratio exceeded 30x after adjusting for a one‑off positive tax effect. mBank's report (May 2025) raised its target price to PLN 63.7 but kept a “sell” recommendation, citing high valuation despite improved results.
• 5. Regulatory and project risk - Complex IT projects for public institutions carry risk of delays, penalties and changing requirements. Exposure to the Polish zloty also introduces currency risk for the Baltic subsidiaries.

Growth opportunities & risks

Short‑ to medium‑term catalysts

• 1. Cross‑selling and expansion via acquisitions - The integration of Sagra Technology and Edrana Baltic provides cross‑selling opportunities. Sagra's SFA platform targets FMCG sales teams, while Edrana's ERP system extends Sygnity's presence in Lithuania. In July 2025 Sygnity announced the acquisition of DocLogix, a Lithuanian provider of document‑management systems employing over 50 people. DocLogix's platform centralises documents, automates workflows (contract management, HR, risk), integrates with major ERP systems and is used by clients like Tele2 and Ignitis; the DMS/ECM market is expected to grow at ~16 % CAGR, from ~USD 7 bn in 2024 to over USD 18 bn by 2030. These new products could be offered to existing clients in banking and utilities.
• 2. Digital transformation tailwinds - EU and Polish regulations increasingly require electronic invoicing and secure document storage. Mandatory e‑invoicing in large EU economies from 2025 will fuel demand for document‑management and workflow automation, benefiting DocLogix and Edrana solutions.
• 3. Improving profitability through operational discipline - Sygnity continues to exit low‑margin contracts, renegotiate prices and optimise staffing. For H1 2025 preliminary results, the company reported revenue of ~PLN 158.4 m and EBITDA of ~PLN 43.7 m, implying an EBITDA margin approaching 28 %, with net profit of PLN 30.6 m. This suggests scale economies from acquisitions and cost control.
• 4. Parent company support - Being part of Constellation Software's TSS division offers access to capital and acquisition know‑how. TSS encourages autonomous, profitable vertical‑market software businesses; the success of other Constellation subsidiaries suggests that Sygnity may benefit from best‑practice sharing and additional tuck‑in acquisitions.

Risks

• Economic slowdown or reduction in public ‑ sector spending could delay or cancel IT projects.
• Integration challenges and cultural differences may hamper synergies from the Baltic acquisitions.
• Competition from domestic and international IT providers intensifies as digital‑transformation budgets attract global players.
• FX exposure - revenue from Lithuanian subsidiaries is denominated in euros; zloty fluctuations affect consolidated earnings.
• Valuation risk - the stock trades at high multiples relative to domestic peers; further share‑price appreciation will depend on sustaining high growth and margins.

Investment thesis

Sygnity has reinvented itself from a low‑margin integrator into a vertical‑market software group. Under the stewardship of TSS/Constellation, management has aggressively shed unprofitable contracts, renegotiated pricing, and used the strong balance sheet to acquire niche software businesses. These actions are visible in the numbers: FY‑2024 revenue grew to PLN 293 m with net profit of PLN 60.5 m , while Q1 2025 revenue rose 17 % YoY and net profit increased by ~43 %. Gross margins have reached nearly 50 %, reflecting a shift toward higher‑value products and services. The balance sheet is robust, with little debt and ample cash to fund further acquisitions.

However, investors should recognise several caveats:

• One‑off gains (e.g., the VAT dispute settlement) inflated FY‑2024 profits.
• Valuation looks rich, and at least one analyst (mBank) still maintains a sell recommendation despite raising the target price, partly because the P/E ratio remains high (P/E is 39.5 as of writing this analysis).
• The success of recent acquisitions has yet to be fully proven; integration and retention of key personnel are crucial.
• Earnings remain sensitive to demand cycles and government spending; a slowdown could quickly reduce revenue given the concentrated customer base.

Overall, Sygnity appears to offer an attractive blend of organic growth, margin expansion and accretive acquisitions. Investors with a medium‑ to long‑term horizon who are comfortable with integration and valuation risk may view the stock as a quality compounder benefitting from Constellation Software's disciplined capital allocation. In the near term, however, the current share price may already discount much of the recent improvement, and caution is warranted until integration progress and further growth catalysts materialise.

Company's Overview

Comp S.A. (WSE: CMP) is a Polish IT integrator (founded 1990; listed on WSE since 2005 in sWIG80). It heads a capital group with well-known brands: Enigma (specialized security/cryptography), NonStop SOC (cybersecurity support), Elzab (multi-functional fiscal cash registers), and Insoft (retail POS software). The Group focuses on digital security systems and retail management solutions; it is a leading Polish supplier of secure IT systems for defence, government and large enterprises.

Business Model & Revenue Generation

Comp makes money by selling hardware and services in two main segments:

IT Security/Integration segment

Comp offers cybersecurity products (cryptography modules, SOC monitoring), network design and integration, data-center and cloud services, plus maintenance contracts.

Electronic Monitoring Systems

Electronic Monitoring Systems (in Polish, System Dozoru Elektronicznego, or SDE) enable authorities to supervise individuals under house arrest or other community-based sanctions via wearable devices and a supporting software platform Comp S.A. is actively involved in the SDE (System Dozoru Elektronicznego - Electronic Monitoring System) sector through its fully owned subsidiary Enigma Systemy Ochrony Informacji Sp. z o.o.

Key Highlights:

• Technology and Exports - Enigma delivers both hardware and proprietary software for SDE systems, allowing the company to participate in export contracts. International implementations typically involve partnerships with local companies.
• Current International Projects:

  Armenia: In 2023, Enigma won an expansion contract for an existing SDE project, delivering 1,000 new sets for monitoring detainees (approx. EUR 1.5 million).

  Czech Republic: A new SDE project is under design phase, with the main implementation scheduled for 2024 (approx. EUR 2.5 million).

• Domestic Activities:

  In Poland, the system is mature and the company is currently delivering ongoing maintenance and upgrades, generating annual revenues of over PLN 20 million.

  A fifth generation of the SDE system in Poland is scheduled for mid-2027, marking a new upgrade cycle.

• Strategic Importance: SDE is considered a strategic growth area within Comp's broader IT and security portfolio.

Cybersecurity

The execution of these solutions is handled primarily by Enigma Systemy Ochrony Informacji Sp. z o.o., a 100% owned subsidiary. Comp S.A. provides classified and unclassified security and IT solutions to the Ministry of National Defence (Ministerstwo Obrony Narodowej - MON), with a particular focus on:

• Cryptographic Devices and Secure Communications: The company (via its Enigma subsidiary) produces and develops cryptographic devices used for securing classified communications. These are supplied to military and other government entities that process confidential data.
• Classified IT Projects: Comp has won several tenders for MON. Notably, it is delivered a large classified project started in 2022. The project is continuing in 2025.

The NonStop SOC (Security Operations Center) is a cybersecurity-focused fully owned subsidiary of Comp S.A. This entity specializes in continuous security monitoring, incident response, and threat intelligence services, delivering:

• Managed security services, including 24/7 monitoring of IT infrastructure
• Detection and response to cyber threats
• Integration of security technologies, possibly including tools from global vendors and Comp's proprietary products

In Q1 2025, the company was still in its development phase, posting minor revenues (PLN 78k) and a net loss of PLN 67k.

Retail segment

The Retail segment of Comp S.A. focuses on developing and manufacturing online fiscal cash registers, which are essential for tax-compliant sales recording in Poland. Additionally, it offers SaaS (Software as a Service) and VAS (Value-Added Services), supporting retailers with digital tools for transaction processing, data analytics, and integration with marketing and loyalty systems. This segment benefits from regulatory changes requiring fiscalization across various sectors. Retail segment consists of following components

Fiscal cash registers

Fiscal cash registers are certified devices used to record sales and taxes in compliance with Polish fiscal regulations, playing a central role in Comp S.A.'s Retail segment. Between 2019 and 2024, they sold 1.4 million fiscal cash registers, with the peak in 2021. In recent years, annual sales have been around 200,000 units. Since these devices are typically replaced every 6-7 years, an increase in sales can be expected in 2027-2028. For example, currently, fiscal cash registers are being replaced by fuel stations such as Orlen (around 10,000 units), as well as Mol and Lotos. In 2028-2029, fiscal cash registers will be replaced by doctors, beauticians, and other service providers. Every new sector that becomes subject to fiscalization has a positive impact on the company's results. For example, in 2027, fiscalization requirements for parking lots and vending machines will come into force, which means the sale of several tens of thousands of devices.

M/platform

The M/platform in Comp S.A.'s portfolio is a proprietary retail technology and services ecosystem designed to serve retail chains and independent stores. It provides a SaaS-based subscription model for delivering value-added services (VAS) such as:

• Loyalty programs
• Electronic receipts (e-paragons)
• Payment services
• Sales analytics
• DRS (deposit return system) software for managing bottle deposit refunds
• Integration with multifunctional fiscal devices

It operates on tens of thousands of installed devices, and the model is heavily based on recurring subscription income. As of early 2024, over 70,000 devices in Poland were running M/platform services nearly double the number from a year prior.

Key highlights:

• The entire subscription revenue backlog for 2024-2027 has been contractually secured and rose to over 90 million PLN, not including potential variable revenues.
• The largest partner is Eurocash.
• Services are provided via Comp Platforma Usług S.A., a partially owned subsidiary.
• Comp has discontinued less promising international activities, especially those linked to a previous model for developing M/platform abroad. This led to a one-time 69 million PLN impairment in 2023 tied to goodwill from the 2014 acquisition of JNJ Ltd.
• The company has now narrowed its strategy to grow M/platform only in partnership with large retail operators with nationwide scale and logistics infrastructure.

The new model is designed to improve margins, reduce working capital needs, and enhance predictability of earnings. The company targets for 2024 was 45-48 million PLN in M/platform-related subscription revenues and around 25 million PLN in EBITDA from this segment. However, company did not report on actual results.

Click here to download the full analysis of Comp S.A.

Poland-Focused Equity ETFs (Single-Country):

These track Polish stock indices exclusively. Examples include the iShares MSCI Poland funds (available in UCITS and US versions), local Beta ETFs tracking WIG indices, and an Expat fund:

• iShares MSCI Poland UCITS ETF (Acc) - Tracks the MSCI Poland index (large/mid-cap Polish stocks).
• iShares MSCI Poland ETF (EPOL) - US-listed ETF tracking a broad MSCI Poland IMI 25/50 Index (Polish equities).
• Beta ETF WIG20TR - WSE-listed fund tracking the WIG20 Total Return index (20 largest Warsaw stocks, including dividends).
• Beta ETF mWIG40TR - WSE-listed, tracks the mWIG40 Total Return (40 mid-cap Polish stocks)
• Beta ETF sWIG80TR - WSE-listed, tracks the mWIG40 Total Return (40 mid-cap Polish stocks)
• Expat Poland WIG20 UCITS ETF - Tracks the WIG20 index (20 largest Polish stocks, price index).

Regional/Thematic ETFs Including Poland. These are broader funds where Poland constitutes a significant portion (generally ≥5% of holdings):

• Amundi MSCI Eastern Europe ex-Russia UCITS ETF - Tracks MSCI EM Eastern Europe ex-Russia (primarily Poland ~70%, plus Hungary, Czech).
• (Former ETFs) - Note that some Eastern Europe ETFs (e.g. Xtrackers MSCI EM Eastern Europe 10/40) have been liquidated due to low assets or Russia's market removal. Currently, the Amundi fund is the main broad Eastern Europe ETF, given Russia's exclusion..

Polish Bonds ETF:

• Beta ETF TBSP (Polish Treasury Bond) - GPW-listed fund tracking the TBSP index of PLN-denominated Polish government bonds, the first bond ETF on the Warsaw exchangeetfstrategy.com. (This is the only notable Polish bond ETF and is not an equity fund.)

Each ETF is either Poland-only or part of a broader regional index. Most Poland-focused equity ETFs are physically replicated (holding actual Polish stocks), while a few use synthetic swaps for efficiency or to overcome local market frictions. For example, the iShares and Beta ETFs use physical replication, whereas Amundi's Eastern Europe fund uses swaps (synthetic)

Gaining exposure to Polish equities is feasible for investors worldwide through a variety of ETFs. For most retail investors in the EU, the iShares MSCI Poland UCITS (Acc) is the most straightforward and robust choice, offering core exposure to Poland's market. US investors should stick with iShares EPOL, which has proven performance and liquidity. Those looking to broaden or deepen their exposure can complement the core with Beta's mid- or small-cap funds (if accessible), or even consider the regional Amundi fund to include neighboring markets

For more detailed analysis of these ETFs, including performance, fees, and suitability for different investment strategies, please refer to our ETF analysis guide.

Our Analysis Coverage

We provide in-depth analysis for several of these companies in our investment guides. Our research covers financial modeling, valuation, risk assessment, and growth opportunities for Polish companies.