Boule Diagnostics (BOUL) Q2 2025 earnings summary

Executive summary

• Q2 2025 organic sales declined 3.3% year-over-year, with net sales at SEK 129.3 million, impacted by geopolitical instability, supply chain delays, and a weakening U.S. dollar.

• Instrument unit sales grew 17% year-over-year (16.5% to 1,029 units), with 5-part instrument sales more than doubling, but at lower average selling prices.

• Consumable sales fell 12% due to delayed payments and halted deliveries, resulting in a larger backlog.

• Positive operating cash flow of SEK 2.9 million achieved, marking a key milestone in the company's transformation.

• Executive leadership team strengthened with new appointments in R&D, technology, and regional sales management.

Financial highlights

• Q2 sales were SEK 129.3 million, down 5.6% year-over-year, with a 2.3% negative currency impact.

• Gross profit was SEK 50 million (down from SEK 59.1 million), and gross margin declined to 38.7% from 43.1% last year.

• Adjusted EBIT was SEK 5.8 million (down from SEK 9.9 million); adjusted operating margin dropped to 4.5% from 7.2%.

• Operating expenses reduced by 47% year-over-year due to restructuring and cost control.

• Available liquidity at quarter-end was SEK 39 million.

Outlook and guidance

• Continued good development expected in OEM and blood controls sales in the second half, with additional US service revenue in Q3.

• Sales funnel maturing in line with expectations; focus remains on installed base growth to drive future reagent sales.

• No further deterioration in average selling prices for 5-part instruments anticipated; stabilization expected.

• Strategic organic investments and portfolio expansion are expected to accelerate growth.

• Ongoing investments in sales coverage in high-growth regions planned for coming quarters.