Boule Diagnostics (BOUL) Q4 2025 earnings summary

Executive summary

• Q4 sales declined 16% year-over-year, mainly due to currency headwinds and the transition to licensed manufacturing in India, while OEM sales remained stable and operational improvements led to better profitability and cash flow.

• Gross margin improved to 48.1% from 44.6% year-over-year, driven by a favorable product mix and higher reagent sales.

• Adjusted EBIT for Q4 was SEK 12.9 million, with a positive operating cash flow of SEK 5.5 million, marking the third consecutive quarter of positive cash flow.

• New headquarters in Sweden were inaugurated, consolidating two sites to improve efficiency and strengthen the operational platform for future growth.

• Full-year sales were SEK 489.7 million, down organically by 7.2% year-over-year, with significant profitability improvement compared to the prior year.

Financial highlights

• Q4 sales were SEK 120.2 million, down 16% year-over-year, with an 11.7% organic decline and a 4.3% negative currency impact.

• Q4 gross profit was SEK 57.8 million, down from SEK 63.8 million; gross margin improved to 48.1% from 44.6% year-over-year.

• Adjusted EBIT for Q4 was SEK 12.9 million; full-year adjusted EBIT was SEK 46.2 million.

• Q4 operating cash flow was SEK 5.5 million, up from SEK -7.9 million last year; available liquidity at year-end was SEK 35 million (SEK 20 million cash, SEK 15 million unused credit facility).

• Full-year profit was SEK -3.8 million, a substantial improvement from SEK -296.6 million in 2024.

Outlook and guidance

• Structural margin improvements are expected to be repeatable due to manufacturing initiatives and cost control, with continued focus on expanding operating margins through cost reductions and efficiency improvements.

• New OEM projects and a veterinary hematology instrument are planned for launch in 2026, with new blood control products launching in 2027.

• Renewed and expanded supply agreements are expected to increase annual sales by SEK 5 million from 2027.

• Continued headwinds from a strong SEK against the USD are anticipated to impact gross margin in coming quarters.

• Investments in digital marketing, lead generation, and portfolio development will continue.