CodeMill (CDMIL) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were 19,072 KSEK, a decrease of 16% year-over-year, mainly due to the loss of a major consulting contract; excluding this, sales grew 4%.

• Recurring revenue annual run-rate increased 14% year-over-year to 43,522 KSEK.

• EBIT for the quarter was 1,412 KSEK, down from 3,754 KSEK in Q1 2024; adjusted EBIT excluding transaction costs was 2,700 KSEK.

• EBITDA was 5,139 KSEK with a margin of 27%, compared to 7,514 KSEK and 33% margin last year.

• The period was marked by a failed takeover bid from Ateliere Creative Technologies, which caused operational and financial turbulence.

Financial highlights

• Net income for Q1 2025 was 1,457 KSEK, down from 3,632 KSEK year-over-year.

• EPS was 0.11 SEK (0.27 SEK in Q1 2024).

• Cash flow from operations was 4,630 KSEK, compared to 14,547 KSEK last year.

• Cash and cash equivalents at quarter-end were 34,109 KSEK, up from 27,494 KSEK year-over-year.

• Solid equity ratio at 68% (56% last year).

Outlook and guidance

• The company does not expect to fully reach the previously communicated 2025 financial targets due to the failed sale and negative currency effects.

• Focus is now on organic growth, product development, and customer engagement, especially in the US market.