Checkin.com (CHECK) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 was SEK 18.8 million (KSEK 18,826), up 10% sequentially from Q4 2024 but down 12% year-over-year; adjusted for the ended RingCentral partnership, revenue grew 4% year-over-year.

• The company reversed the downward trend from 2024, returning to quarter-over-quarter growth.

• FaceCheckin, a new biometric login product, launched in January and contributed 9% of Q1 revenue.

• Strategic focus remains on organic growth, cost control, and expanding through partnerships in key verticals.

Financial highlights

• Gross margin was 70% in Q1 2025, down from 77% in Q1 2024, mainly due to increased server capacity costs and lower margins in South American iGaming.

• EBITDA was SEK 2.3 million (KSEK 2,316), margin 12%, down from last year due to lower revenue and gross margin, partially offset by reduced operational costs.

• Cash flow from operating activities was just over SEK 4 million (KSEK 4,145), stable year-over-year.

• Cash position at quarter-end was SEK 24.5 million (KSEK 24,461); net cash (after loans) was just over SEK 17 million (KSEK 17,301).

• Equity ratio stood at 88% at the end of the quarter.

Outlook and guidance

• Long-term ambition is to achieve the Rule of 40 (revenue growth plus EBITDA margin over 80%), but this is challenging for 2025 without accelerated growth; LTM ending March 2025 was -11%.

• No major revenue impact from the WestJet partnership is expected in the coming quarters, but significant long-term potential is anticipated.

• The company is well positioned to benefit from regulatory changes in telecom, iGaming, and the shift to biometrics in travel.