Original-Research: Reply SpA – from Quirin Privatbank Kapitalmarktgeschäft 20.11.2025 / 16:07 CET/CEST Dissemination of a Research, transmitted by EQS News – a service of EQS Group. The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions. ————————————————————————— Classification of Quirin Privatbank Kapitalmarktgeschäft to Reply SpA Company Name: Reply SpA ISIN: IT0005282865 Reason for the research: Update Recommendation: Buy from: 20.11.2025 Target price: 178 Last rating change: Analyst: Sebastian Droste Vertical AI solutions drive strong sales On November 17, 2025, Reply released its 9M 2025 financial results. Revenue growth was strong (+9.0% yoy) and in line with our expectation. Growth was driven by continued demand for AI and agentic architectures, the scaling of vertical solutions such as HR, procurement, payments and customer service, expanding mission-critical cloud and defense projects, stronger contributions from Region 1 and Region 3, solid performance in technology and application businesses, and incremental support from funded R&D projects and small M&A. Weakness in automotive and agency-related activities remained a headwind, and process-related business declined, limiting even stronger momentum. The EBITDA margin improved and was in line with our estimate, supported by cost discipline, productivity gains, a favourable mix and a one-off insurance gain, while structurally weaker activities probably prevented further upside. Management expects stable demand for AI-driven and outcome-based services and a solid finish to the year, although the exceptionally strong Q4 of the prior year implies tougher yoy comparisons. Region 2 remains a challenge due to its exposure to weaker agency-driven business, while Regions 1 and 3 should stay supported by government, defense and infrastructure projects. In our view, Reply remains attractive given its strong positioning in high-demand AI architectures, diversified sector exposure and consistent margin profile. We leave our target price unchanged at EUR 178 and confirm our Buy recommendation. You can download the research here: https://eqs-cockpit.com/c/fncls.ssp?u=66537ebb968a59c1174bf48da4a940ba For additional information visit our website: https://research.quirinprivatbank.de/ Contact for questions: Quirin Privatbank AG Institutionelles Research Schillerstraße 20 60313 Frankfurt am Main [email protected] https://research.quirinprivatbank.de/ ————————————————————————— The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. View original content: https://eqs-news.com/?origin_id=fa6a39ce-c621-11f0-be29-0694d9af22cf&lang=en ————————————————————————— 2233686 20.11.2025 CET/CEST
