Adtraction Group (ADTR) Q1 2025 earnings summary

Executive summary

• E-commerce showed 10% gross profit growth in Q1 2025, while the finance segment declined 14% year-over-year, impacted by regulatory changes and the Klara Lån divestment.

• Profitability and operating cash flow remained strong, with EBITA stable at SEK 10.6m and operating cash flow reaching SEK 25.7m.

• Net revenue for Q1 2025 was SEK 282.2m, a decrease of 2.6% year-over-year, and gross profit was SEK 53.8m, down 5.4%.

• The integration of Adrecord is nearly complete, with full migration to Adtraction’s platform expected in Q2 2025.

• New service levels and a CRM system are being implemented to enhance customer management and operational efficiency.

Financial highlights

• Net sales for Q1 2025 were SEK 282.2m, down 2.6% year-over-year; gross profit was SEK 53.8m, down 5.4%.

• EBITA was SEK 10.6m, with a margin of 3.7%, unchanged from the previous year.

• Adjusted net result per share was SEK 0.50, at par with last year; reported net loss was SEK -7.9m due to amortization and deferred tax.

• Operating cash flow reached SEK 25.7m, up from SEK 2.7m in Q1 2024; net cash position at quarter-end was SEK 129.3m.

• Dividend of SEK 2 per share approved for 2025, to be paid in two tranches.

Outlook and guidance

• Management no longer expects a return to overall growth in Q2 2025 due to continued weakness in the finance segment and consumer credit.

• The main goal for 2025 is to return to growth, leveraging e-commerce trends and expanding service offerings.

• Positive e-commerce growth in April, but finance vertical remains weak, especially in several European markets.

• Market uncertainty persists, particularly in the finance sector and broader macroeconomic environment.