Carasent (CARA) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw 27% year-over-year revenue growth to SEK 82.2 million, with 16% organic ARR growth and over 90% recurring revenue.

• EBITDA margin improved to 29% (SEK 23.6 million), up from 10% last year, driven by cost control and efficiency gains.

• Net income reached SEK 14.1 million, reversing a prior loss.

• Major development projects, including WebDocX in Germany and new modules in Sweden and Norway, are reaching the market.

• Margin expansion attributed to long-term focus on recurring revenue and efficiency.

Financial highlights

• ARR reached SEK 335 million, up 27% year-over-year, with 16% organic growth.

• Subscription-based revenue grew 33% year-over-year in Q3 2025.

• Gross profit margin stable at 85% for Q3 and YTD.

• EBITDA margin was 29% in Q3, up from an adjusted 19% last year.

• Cash balance at quarter-end was SEK 173 million.

Outlook and guidance

• Q4 performance depends on timely implementation of major projects, including EvolvAt and German security upgrade.

• Financial targets for 2025 reaffirmed: revenue SEK 345–350 million, EBITDA ~SEK 75 million, EBITDAC ~SEK 35 million.

• Continued investment in German market, especially in sales, marketing, and AI solutions.

• Price increases are generally above inflation, with some contract limitations.