Boule Diagnostics (BOUL) Q3 2025 earnings summary

Executive summary

• Returned to organic growth of 1.7% in Q3, despite a 2.4% decline in reported net sales due to a 4.1% negative currency impact and ongoing market challenges.

• Instrument sales grew 16–16.4% year-over-year, with strong demand for 5-part instruments and resumed government tenders.

• Positive operating cash flow achieved for the second consecutive quarter, supported by a 30% reduction in operating expenses year-over-year.

• Signed a technology partner supply agreement for a new veterinary instrument launching in 2026, supporting future growth.

• Business now reported in two segments: Diagnostics and OEM, to enhance transparency and strategic focus.

Financial highlights

• Q3 sales were SEK 127.2 million, down 2.4% year-over-year, but organic growth was positive at 1.7%.

• Gross profit was SEK 52.4 million, with gross margin at 41.2% (down from 46.8% year-over-year, but up 2.4 points from Q2).

• Adjusted EBIT reached SEK 12 million; adjusted operating margin was 9.4% (down from 11.8% year-over-year).

• Operating cash flow improved to SEK 1 million from -11.6 million last year; available liquidity at quarter-end was SEK 37 million.

• Operating expenses reduced by 30% year-over-year, reflecting restructuring and cost control.

Outlook and guidance

• Expectation of sales stabilization as distributor inventories deplete and selective price increases to offset currency headwinds.

• Positive outlook for the year, with continued focus on margin expansion, operational efficiency, and organic growth.

• Ambition to maintain positive operating cash flow into 2025.

• New product launches planned for 2026 and 2027, including generic blood control products.

• One-off effects from delayed customer payments expected to decrease in coming quarters.