CDON (CDON) Q1 2025 earnings summary

Executive summary

• Q1 saw a weak start with underperformance in January and February, but operational adjustments led to a strong March recovery, stabilizing performance to prior year levels.

• Strategic review initiated to explore alternatives such as take-private transactions, capital raise, or partial/full sale.

• Focus on operational efficiency, merchant integration, and targeted improvements in top merchants and categories.

Financial highlights

• GMV declined 12% year-over-year to SEK 350.4 million; net sales down 16% to SEK 80.5 million.

• Gross profit after marketing (GPAM) fell 13% to SEK 38.6 million; GPAM margin stable at 11.0%.

• Reported EBITDA was SEK 0.2 million, but adjusted EBITDA (excluding bad debt resolution) was SEK -4.4 million.

• Marketing costs as a percentage of GMV decreased slightly to 6.6% for CDON and 11.2% for Fyndiq.

• Cash and cash equivalents at period end were SEK 77 million, stable year-over-year.

Outlook and guidance

• Operational improvements and new merchant API are expected to accelerate onboarding and provide a solid base for future growth.

• Management remains optimistic about long-term growth, focusing on cost savings and reducing dependency on paid traffic.

• No specific guidance on current trading, but positive momentum noted at the end of March.