Yubico (YUBICO) investor relations material

Executive summary

• Net sales declined 18.8% year-over-year to SEK 499.1 million in Q2 2025, but sales momentum returned late in the quarter, especially in subscription bookings.

• Subscription model gained traction, with sales up 32.5% to SEK 79.2 million, now 15.9% of net sales, and bookings representing 32% of total bookings.

• ARR increased 37% year-over-year to nearly SEK 400 million, driven by new multi-year subscription deals, including a major high-tech client conversion.

• EBIT margin dropped sharply to 4.2% from 21.3% year-over-year, mainly due to lower net sales, currency effects, and delayed revenue recognition from subscriptions.

• The company remains committed to long-term targets of 25% annual growth and 20% EBIT margin, expanding in high-tech, AI, and financial sectors.

Financial highlights

• Q2 net sales: SEK 499.1 million, down 18.8% year-over-year; subscription sales up 32.5% to SEK 79.2 million.

• Gross margin: 79.1%, down from 80.3% last year, mainly due to currency effects.

• EBIT: SEK 21.2 million (4.2% margin), down from SEK 130.8 million (21.3%).

• Net profit: SEK 8.9 million, down from SEK 103.6 million; EPS after dilution SEK 0.10.

• Net cash position improved to SEK 902.6 million; cash and equivalents at SEK 945.5 million.

Outlook and guidance

• Strong sales pipeline and renewed order momentum expected for H2 2025, with a focus on subscription model opportunities.

• Short-term negative impact on net sales and EBIT from subscription transition, but long-term revenue and margin per customer expected to be higher.

• Long-term financial targets reaffirmed: 25% average annual growth and 20% EBIT margin.