Reconciliation of non-IFRS information

TMF Group presents figures in the Financial Review section on a management basis, and some of these figures are not defined as measures of financial performance or liquidity under IFRS. These non‑IFRS measures, often referred to as alternative performance measures, are included because management considers them valuable supplementary indicators of TMF Group’s performance. TMF Group believes that reporting these non‑IFRS measures provides a clearer understanding of its financial performance and position.

The following definitions are used as alternative performance measures:

• Figures reported at constant currency basis

• Adjusted revenue

• Adjusted gross profit

• Adjusted gross margin

• Adjusted EBITDA

• Adjusted EBITDA margin

• Adjusted cash flow from operating activities

• Adjusted cash flow conversion

• Senior secured net debt ratio

• Adjusted EBITDA for covenant calculation

• Organic performance

Non‑IFRS measures are not defined under IFRS and companies may calculate them differently or apply them inconsistently. Consequently, these figures may not be comparable to similarly titled measures reported by other organisations. The definitions of all non‑IFRS measures referenced throughout this annual report, along with reconciliations to the closest IFRS‑compliant measures, are included herein. 

Figures reported on a constant currency basis

Management basis shows the 2024 comparatives remeasured at a constant currency (at 2025 average rate) to enable a meaningful comparison of performance across periods by excluding the effect of exchange‑rate fluctuations.

Adjusted revenue

2024 revenue is presented on a constant currency basis and is excluding the impact of hyperinflation in Argentina and Turkey.

Adjusted gross profit

In 2025, it is calculated based on total revenue of €962.4 million (2024: €883.2 million) and direct costs of services of €367.6 million (2024: €334.4 million), comprising employee benefit expenses of €351.3 million (2024: €330.2 million), professional fees of €13.9 million (2024: €13.8 million) and other expenses of €2.4 million (2024: €0.4 million).

Adjusted gross margin

Adjusted gross margin is calculated as Adjusted gross profit divided by revenue. Hyperinflation has no material impact on 2025 figures. Adjusted gross profit is reported as it allows for comparability of operational performance, isolating the margin generated by direct service delivery.

Adjusted EBITDA

Adjusted EBITDA of TMF Group Holding B.V. excludes the impact of non-underlying and separately disclosed items. In 2025, non-underlying and separately disclosed items amount to €21.6 million, reclassified to positions of a consolidated statement of profit or loss: €10.9 million to employee benefit expenses, €9.9 million to professional fees, €0.3 million to office expenses and €0.5 million to other expenses. Non-underlying and separately disclosed items of €21.6 million exclude the net insurance income of €2.5 million recognised for management purposes in the income statement of 2024 and for financial statement purposes in the income statement of 2025, as part of professional fees.

Adjusted EBITDA margin

Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue.

Adjusted cash flow from operating activities

Adjusted EBITDA minus IFRS16 leases, Capex and adjusted for movement in working capital

Adjusted cash flow conversion

Adjusted cash flow from operating activities divided by Adjusted EBITDA.

Senior secured net debt ratio

Consolidated senior secured net debt divided by Adjusted EBITDA for covenant calculation. 

Adjusted EBITDA for covenant calculation

Adjusted EBITDA plus run rate impact of acquisitions.

Organic performance 

Figures presented as organic and under organic growth exclude the in-year impact of material acquisitions.

 
Reconciliation to the financial statements:

Adjusted cash flow from operating activities is calculated based on Adjusted EBITDA, cash inflow/(outflow) from working capital, cash outflow from lease payments and capital investments. TMF Group reported IFRS 16 Office leases, including payments for buildings and vehicles, amounting to €35.2 million; lease payments of €14.1 million related to IFRS 16 software and hardware are reclassified to the Capex (including licences) line of the cash flow.