Crunchfish (CFISH) Q1 2025 earnings summary

Executive summary

• Net sales for the quarter were SEK 285,000, a significant drop year-over-year, mainly due to the absence of last year's one-off sale and current revenue from a hackathon award and contract revenue recognition on the Gesture side.

• Q1 2025 marked a strategic turnaround, focusing on scalable offline payment solutions, especially in India, with a new Offline Terminal Infrastructure (OTI) approach targeting integration with NPCI and global payment ecosystems.

• The OTI strategy is inspired by card payment infrastructure, aiming for interoperability, flexibility, and scalability, and is positioned for both national and global adoption, including CBDC projects like the Digital Euro.

• Significant cost reductions were achieved by discontinuing the gesture interaction business, focusing resources on digital payment solutions.

• Cash holdings at quarter-end were SEK 14,082 thousand, with additional funds expected from warrant exercises, providing a financial runway through the end of the year under a worst-case scenario.

Financial highlights

• Net sales for Q1 2025 were SEK 285,000, down from SEK 1,665,000 in Q1 2024, with revenue sources including a hackathon award and contract revenue from Gesture.

• EBITDA for Q1 2025 was SEK -4,552,000, compared to SEK -3,920,000 in Q1 2024.

• Loss before tax for Q1 2025 was SEK 5,109,000, an improvement from SEK 6,255,000 in Q1 2024.

• Cash and cash equivalents at quarter-end were SEK 14,082,000, down from SEK 21,985,000 a year earlier.

• Operating expenses decreased to SEK 7,976,000 from SEK 12,812,000 year-over-year.

Outlook and guidance

• Financial runway is projected to last through the end of the year, assuming minimal revenue.

• OTI sales efforts are focused on payment rail operators, central banks, and institutional stakeholders, with India’s NPCI as the primary target.

• The global offline payments market is expected to grow rapidly, driven by emerging economies and CBDC initiatives.

• Management aims to avoid a new financing round by increasing revenue and securing deals with network providers.

• Crunchfish anticipates revenue from both infrastructure sales to payment networks and downstream wallet solutions to banks and TPAPs.