Carasent (CARA) Q2 2025 earnings summary

Executive summary

• Revised financial targets and guidance were issued due to performance lagging behind plan, driven by restructuring, project delays, and increased investment in AI solutions, with 30 users live and a significant contract win with Medtanken in Västra Götaland.

• AI-driven ambient listening functionality launched in three products, receiving positive early feedback.

• Share buyback program up to SEK 150 million initiated due to strong cash position and focused acquisition strategy.

• Net sales grew 26% year-over-year in Q2 2025 to SEK 82.9 million, with organic growth at 13%.

• Net income remained negative at SEK -5.5 million for Q2 2025.

Financial highlights

• ARR reached SEK 317 million, up 27% year-over-year, including signed but not yet implemented contracts; organic ARR growth was 17%.

• Organic recurring revenue grew 13% in Q2 2025, with net retention at 109%.

• Quarterly revenue reached SEK 82.9 million, up from SEK 65.9 million in Q2 2024.

• EBITDA margin at 15%, with EBITDA minus CapEx at 3%; both improved from last year but below targets.

• Gross profit margin stable at 85%.

Outlook and guidance

• 2025 revenue target revised to SEK 345-350 million (previously SEK 350 million); EBITDA target now SEK 75 million (previously SEK 82-88 million).

• Medium-term targets set for 15% average annual growth and 35% EBITDA margin by 2028, with CapEx mid to high single digits as a percentage of revenue.

• Management expects a strong H2, but acknowledges risks and the need for flawless execution, especially in large projects like Volvat.