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Modelon (MODEL) investor relations material
Modelon Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net revenue for Q3 2025 was MSEK 16.3, down 21% year-over-year, mainly due to reduced legacy service demand and adverse currency effects.
Annual recurring revenue (ARR) was MSEK 53.6, up 1% year-over-year, with growth in Modelon Impact offset by declines in legacy products.
Operating loss improved significantly to MSEK -4.0 from MSEK -19.1 in Q3 2024, reflecting cost reduction and efficiency programs.
Net profit for Q3 was MSEK -3.9, a substantial improvement from MSEK -18.8 in the prior year.
Equity strengthened by a MSEK 20 capital raise from Briarwood Capital Partners at a significant premium.
Financial highlights
ARR for Q3 2025 was MSEK 53.6, up 1% year-over-year but down 2% sequentially.
Net revenue for Q3 2025 was MSEK 16.3, down 21% year-over-year; software revenue was MSEK 13.5, down 7%.
Service revenues declined 54% to MSEK 2.8 in Q3.
Adjusted EBIT for Q3 was MSEK -4.0, a marked improvement from MSEK -12.0 in Q3 2024.
Cash balance at quarter-end was MSEK 51.8, down 30% year-over-year.
Outlook and guidance
Cost run-rate expected to remain below previous years due to ongoing efficiency measures.
Focus remains on growing recurring license revenues from Modelon Impact and expanding through partners.
Ambition to achieve consistent ARR growth above 20% and positive free cash flow from 2026.
Profitability and cash flow expected to improve through revenue growth and disciplined cost management.
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