EmbeddedArt Group (EMART) Q1 2025 earnings summary

Executive summary

• Revenue increased by 35.5% to 14,142 KSEK compared to the same quarter last year, following the reverse acquisition of EmbeddedArt AB and its subsidiary.

• EBITDA decreased to 307 KSEK from 676 KSEK year-over-year, with operating income at 88 KSEK versus 664 KSEK.

• Net profit for the period was 32 KSEK, down from 730 KSEK in Q1 2024.

• Cash flow for the period was -4,256 KSEK, compared to -997 KSEK last year.

• The quarter included one-time costs related to the reverse acquisition, positioning the group for future growth, especially in the defense sector.

Financial highlights

• Net sales reached 14,144 KSEK, up 35% year-over-year.

• Gross margin and detailed cost breakdowns show increased personnel and external costs, reflecting expansion.

• Earnings per share were 0.033 SEK, compared to -0.001 SEK (pre-reverse split) in Q1 2024.

• Cash and cash equivalents at period end were 2,501 KSEK.

• Total assets stood at 21,267 KSEK as of March 31, 2025.

Outlook and guidance

• Management expects continued growth opportunities, particularly in defense, and is actively seeking acquisition targets to boost revenue and profit.

• Ongoing product development and positive feedback from defense clients support a favorable outlook.