Hemnet Group (HEM) investor relations material

Executive summary

• Net sales in Q2 2026 declined by 23.1% year-over-year to SEK 371.7 million, mainly due to lower listing volumes and a timing shift in revenue recognition from the Sell First, Pay Later (SFPL) model.

• EBITDA fell by 33.9% to SEK 172.4 million, with the margin contracting to 46.4% as lower revenues reduced fixed-cost leverage.

• ARPL (Average Revenue Per Listing) grew by 12.4% in Q2, driven by higher demand for value-added services and price adjustments.

• Published listings dropped 14.3% year-over-year, but sequential improvement and early signs of market recovery were noted.

• Strategic initiatives, including SFPL, new partnerships, and AI-driven features, are being accelerated to capture more listings and enhance platform value.

Financial highlights

• Net sales: SEK 371.7 million, down 23.1% year-over-year.

• EBITDA: SEK 172.4 million, margin 46.4%, down from 54% a year ago.

• Paid listings fell by 34.9% year-over-year, while published listings declined by 14.3%.

• Free cash flow (rolling 12 months): SEK 621 million.

• Leverage ratio: 1.1x, up 0.5x from Q2 2025.

Outlook and guidance

• Management expects deferred revenue from SFPL to be realized in future periods as listings are sold.

• Positive signals for H2 2026 and 2027, with stabilized interest rates, eased credit restrictions, and improved sentiment.

• Double-digit ARPL growth is anticipated to continue into 2027.

• Securing all listings from the start of the transaction lifecycle is a top priority, with further strategic initiatives planned.