Enento Group (ENENTO) Q1 2025 earnings summary

Executive summary

• Net sales grew 1.1% year-over-year to EUR 37.7 million, marking the first quarterly growth in over two years, driven by Business Insight growth in Finland, Norway, and Denmark, and strong compliance services.

• Adjusted EBITDA remained stable at EUR 12.4 million, with a margin of 33.0%, supported by sales growth and cost savings.

• Free cash flow improved to EUR 7.0 million, with a cash conversion rate of 67.2%.

• Strategic focus remains on expanding new services, especially in compliance, ESG, and real estate information, while driving efficiency actions in response to lower Swedish consumer credit volumes.

• Regulatory changes in Sweden are impacting the consumer credit market, but no major behavioral shifts observed yet.

Financial highlights

• Net sales: EUR 37.7 million (+1.1% year-over-year); new services contributed 11.0% of sales.

• Adjusted EBITDA: EUR 12.4 million (flat year-over-year); margin: 33.0%.

• Adjusted EPS: EUR 0.24, down 12.1% year-over-year due to increased finance costs from unrealized exchange rate losses.

• Net debt: EUR 141.0 million; net debt to adjusted EBITDA: 2.7x; cash position at quarter-end was EUR 15.2 million.

• Free cash flow: EUR 7.0 million (+1.6% year-over-year); capital expenditure: EUR 2.0 million.

Outlook and guidance

• 2025 net sales expected at EUR 150–156 million; Adjusted EBITDA at EUR 50–55 million, assuming stable exchange rates.

• Focus remains on profitability, free cash flow, and investments in growth and competitiveness.

• Swedish consumer credit market faces structural and regulatory changes expected to impact performance.

• Short-term risks in Swedish premium sales are expected, but mid-to-long-term outlook is positive with more recurring revenue and improved profitability.