Clavister (CLAV) Q1 2025 earnings summary

Executive summary

• Order intake surged 190% year-over-year to 110.3 MSEK, mainly due to a major 68 MSEK defense order from BAE Systems and strong civilian firewall business momentum.

• Net sales grew 21% year-over-year to SEK 53.4 million, despite significant negative FX impacts.

• Hardware shipments increased 111% year-over-year, supporting future recurring software license revenues.

• Order book expanded to SEK 356 million from SEK 300 million in the previous quarter.

• Series 9/TO9 warrant exercise achieved a 98.9% exercise rate, raising 63 MSEK and strengthening cash position for debt reduction.

Financial highlights

• Gross margin was 75.2%, below the 80% target due to higher hardware sales but remained resilient.

• Adjusted EBITDA margin was 12.6% (target 20%), impacted by sales mix and increased OpEx for growth investments.

• FX-adjusted net sales growth was 24% year-over-year.

• ARR grew 8% year-over-year to 133.9 MSEK, with a one-off churn effect from legacy contract transitions and a 5.6 MSEK negative impact from end-of-life platforms.

• Operational cash flow improved to 5.0 MSEK, with better working capital management and a cash balance of 63.8 MSEK.

Outlook and guidance

• Targeting at least 20% CAGR revenue growth for 2025–2027.

• 2025 ambition: EBITDA margin ≥20%, positive EBIT, and positive operational cash flow despite increased sales and marketing investments.

• Expectation of higher gross margins in coming quarters as hardware mix normalizes.

• Anticipated ramp-up in defense deliveries in the second half of the year, with additional contracts contributing from late 2025.

• Positive ARR impact from Q1 hardware deliveries expected to materialize mainly in Q2.