Latvian language technology company SIA “Tilde” reported a net turnover of 7.916 million euros for 2025, representing an increase compared to the previous year, according to the company’s annual report and Uzņēmumu reģistrs data.
Financial Growth and Export Markets
Net profit for SIA “Tilde” surged by 73,7% in 2025, reaching 343 637 euros, up from previous periods. Gross profit expanded from 1,019 to 1,468 million euros during the same timeframe, driven by an increase in turnover alongside a 171 tūkstoti-euro reduction in the cost of services sold. Core operational net cash flow reached 1,291 miljons eiro, a significant rise from 73 624 eiro in 2024, leaving the company with a year-end cash balance of 2,37 miljoniem eiro compared to 1,56 miljoniem eiro previously.
Exports accounted for 80,9% of the company’s total turnover last year. SIA “Tilde” board chairman Artūrs Vasiļevskis noted that the enterprise maintains a primary focus on European languages, with Germany, Finland, and France serving as its three largest export markets. Operating across the Baltics alongside subsidiary branches in Lithuania and Estonia, the company employed an average of 102 people directly in Latvia last year, with a total workforce of 156 across the Baltic region.
Public Funding and Research Investments
Sustained investments in research and development remain a core pillar of the company’s business model, accounting for gandrīz 1,5 miljoni eiro—or approximately piektā daļa of total turnover—last year. Vasiļevskis stated that maintaining such a resource-heavy technology division relies heavily on external project backing, noting that customer revenue alone cannot sustain the high costs of artificial intelligence research.
Public funding plays a substantial role in these operations. Last year, the company received deviņus research project co-financing payments totaling 2,184 miljoniem eiro, up from 1,598 miljoniem eiro the prior year. Beyond financial support, Vasiļevskis emphasized that participation in these initiatives grants the company access to Europe's leading research institutes and scientific community.
European Commission Contracts and Open-Source Models
The company’s operational trajectory shifted significantly a couple of years ago when the European Commission selected SIA “Tilde” from a pool of vairāk nekā 100 industry applicants to train an open-source foundational language model for European languages. This selection granted the firm access to Europe’s most powerful supercomputers, culminating in the release of “TildeOpen.” In February, the company adapted this model to support translation across 34 European languages.
Unlike massive general-purpose models developed by entities like OpenAI and Anthropic, “Tilde” focuses on compact, specialized applications. The technology is built specifically on European data sources rather than American or Chinese datasets, ensuring that the artificial intelligence reflects European linguistic contexts. The platform can also be deployed directly within a client's own infrastructure—a mandatory security requirement for many European public administration bodies and financial institutions.
International Public Administration Deployments
Building on the success of national language technology platforms like “Hugo”—which is maintained in Latvia by the Cultural Information Systems Centre—the European Commission has funded the integration of these solutions into other member states. Latvian-developed modules and platforms are currently utilized in Estonia, Lithuania, Croatia, Malta, Iceland, and Finland, where they have been adopted by the Finnish parliament and the prime minister’s office.
Domestically, the company serves individual users via freemium subscription models alongside tailored enterprise solutions, such as smart assistants developed for the insurer BTA and Riga Airport customer support. SIA "Tilde" is running pilot accessibility initiatives in Latvian schools, testing real-time transcription tools designed to assist children with hearing impairments or language barriers by displaying spoken lessons on screen while providing feedback to teachers.
Regulatory Hurdles and Talent Competition
Despite expanding its footprint across Europe, SIA “Tilde” faces distinct operational challenges, including brand recognition hurdles compared to larger French competitors and intense global competition for specialized talent. The company currently employs vairāk nekā desmit science PhDs, but must compete with major American technology firms offering significantly higher compensation packages. To retain personnel, management emphasizes challenging work assignments involving supercomputer access and long-term researcher integration through academic internship pipelines. Staff turnover at the company stood at 11,6% last year.
Did you know? SIA “Tilde” was originally registered on September 17, 1991, and initially gained recognition in Latvia as a developer of spell-checking software and hyphenation tools before evolving into an artificial intelligence and language technology enterprise operating across 34 European languages.
Frequently Asked Questions
What is SIA “Tilde”?
SIA “Tilde” is a Latvian language technology company established in 1991 that specializes in artificial intelligence solutions, machine translation, and specialized language models for European public administrations and enterprises.
What are SIA “Tilde’s” primary export markets?
The company’s three largest export markets are Germany, Finland, and France, with international sales accounting for 80,9% of its total turnover.
How does “TildeOpen” differ from general artificial intelligence models?
Unlike broad consumer chatbots, “TildeOpen” is a compact, specialized model trained on European data sources, designed primarily for translation, document summarization, and deployment within secure local customer infrastructure.
What role does public funding play in the company’s research?
Public funding and research co-financing make up a substantial portion of the company’s budget, with grants from sources like the European Commission and local agencies reaching 2,184 miljoniem eiro last year.
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