DDM (DDM) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong operational performance, with adjusted gross collections up to 12.7 MEUR from 11.4 MEUR year-over-year.

• Profit before tax reached 3.3 MEUR, reversing a loss of 2.1 MEUR in Q1 2024, driven by disciplined portfolio oversight.

• Strategic shift underway to an institutional asset management model, with a rebrand to Achilles Capital AB planned for Q2 2025.

• Liquidity remains solid with 5.3 MEUR in cash and ERC at 309 MEUR at quarter-end.

• Jesper Bernström appointed CFO on March 1, 2025; Matthew Doerner became CEO in April 2025.

Financial highlights

• Adjusted net collections rose to 10 MEUR from 9.5 MEUR year-over-year; adjusted cash EBITDA increased to 5.7 MEUR from 5.3 MEUR.

• Operating expenses stable at 4.8 MEUR, matching Q1 2024.

• Net result for the period was 2.0 MEUR, compared to a loss of 2.5 MEUR in Q1 2024.

• Total assets at 250.6 MEUR, net debt at 167.0 MEUR, and equity ratio at 16.0%.

• Cash flow from operating activities before working capital changes was 2.9 MEUR, down from 4.9 MEUR in Q1 2024.

Outlook and guidance

• Management expects continued opportunities from market dislocation and regulatory-driven asset disposals in Europe.

• Focus remains on selective capital deployment and scaling recurring earnings, with a goal to grow AUM and deliver long-term value.

• Transitioning reporting focus from ERC to AUM to reflect broader managed capital.