4C Group (4C) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a 22% year-over-year decline in net sales to SEK 72.7 million, mainly due to delayed deals in North America, seasonal slowdowns in EMEA, and global uncertainty, but progress was made in core markets and expert services, especially in defense and training.

• Strategic shift announced to focus on Defence, Total Defence, and related expert services, reducing ambition in the Resilience domain to improve efficiency and profitability, with SEK 40 million in annual OPEX savings.

• Software revenue accounted for 67% of Q3 net sales, with recurring revenue (ARR) rising to SEK 206.7 million, up 36% year-over-year.

Financial highlights

• Q3 2025 net sales: SEK 72.7 million, down from SEK 93.8 million in Q3 2024; net sales growth -22% year-over-year.

• Adjusted EBIT margin for Q3: -16% (17% in Q3 2024); net income for Q3: SEK -13.3 million (SEK 11.1 million in Q3 2024).

• LTM net sales reached SEK 352.3 million, up 4% year-over-year.

• Software revenue as % of net sales: 67% in Q3; recurring revenue as % of net sales: 62% in Q3.

• Order intake LTM surged 54% to SEK 510 million; order book up 146% to SEK 281 million year-over-year.

Outlook and guidance

• Management expects continued uncertainty in the US due to government shutdown and budget issues, but anticipates positive momentum once resolved.

• SEK 40 million in annual cost savings from restructuring expected to be fully realized by end of Q1 2026, with most savings going to the bottom line.

• Demand for defence-related products and services expected to accelerate in 2026 and beyond.

• Current financing is assessed as sufficient to cover investments and working capital needs through 2026.

• Focus on core Defence and Total Defence offerings to support scalable, long-term growth.