Arctic Falls (ARFA) Q1 25/26 earnings summary

Executive summary

• Net sales for Q1 2025/2026 increased by 22.9% to 31,922 TSEK compared to the same quarter last year, driven by higher indoor facility utilization and growing demand for year-round testing.

• Operating profit rose to 12,230 TSEK (8,967 TSEK), with an improved operating margin of 38.3% (34.6%).

• Net income doubled to 8,870 TSEK (4,383 TSEK), and earnings per share reached 0.98 SEK (0.49 SEK), reflecting strong profitability.

• Cash flow from operating activities surged to 21,366 TSEK (596 TSEK), mainly due to reduced accounts receivable and higher pre-tax profit.

• The company is preparing for a potential IPO, strengthening internal structures and investor readiness.

Financial highlights

• Revenue: 31,922 TSEK, up 22.9% year-over-year.

• Operating profit: 12,230 TSEK, up 36.4% year-over-year.

• Operating margin: 38.3% (up from 34.6%).

• Net income: 8,870 TSEK, up 102.4% year-over-year.

• Cash and bank at period end: 36,432 TSEK (23,900 TSEK last year).

Outlook and guidance

• Growth rate expected to moderate in Q2, but the company remains well positioned to achieve full-year financial targets.

• Continued focus on expanding customer base, enhancing capacity, and maintaining stable, profitable growth.