4C Group (4C) Q2 2025 earnings summary

Executive summary

• Achieved record high last 12 months sales of SEK 373.4 million in Q2 2025, with SEK 75.6 million in net sales for the quarter and stable ARR at SEK 181 million; defense remains the largest revenue generator with significant contract wins in NATO, APAC, and Sweden, and a growing customer base from 19 to 28 year-over-year.

• AI-first strategy advanced, with AI integrated into products, a Chief AI Officer appointed, and live AI war game deployments in NATO countries.

• Achieved strong global presence, supporting 15 major exercises and expanding defense contracts, including a new NATO member state and APAC counter-terrorism win.

• Profitability improved, with adjusted EBIT margin at -16% in Q2 2025 versus -54% last year, and net loss narrowed to SEK -9.0 million from SEK -27.5 million.

• Stronger momentum and improved profitability expected for the second half of 2025, supported by increased defense budgets and contract pipeline.

Financial highlights

• Net sales for Q2 2025 reached SEK 75.6 million, up 25% year-on-year; LTM net sales at SEK 373.4 million, up 27% year-on-year.

• Software revenue share increased to 66% in Q2 LTM, up 9% year-on-year; Q2 software revenue was SEK 42.1 million, accounting for 56% of net sales.

• Adjusted EBIT margin improved to -16% in Q2 2025 from -54% in Q2 2024; LTM adjusted EBIT margin at 11%.

• Order intake for the last 12 months reached an all-time high of SEK 544 million, with order book at SEK 298 million, up 156% year-on-year.

• ARR reached SEK 181 million in Q2, up 39% year-on-year, with defense segment contributing 88%.

Outlook and guidance

• Management anticipates continued growth and improved profitability in H2 2025, with a strong order book and positive market signals.

• Positive outlook for H2 2025, expecting improved cash flow and profitability, with seasonally stronger quarters ahead.

• Targets average annual FX-adjusted organic net sales growth above 20% and software revenue share above 70% in the medium term.

• Aims for adjusted EBIT margin above 20% in the medium term.

• Liquidity is expected to stabilize, with sufficient financing for the next 12 months.