Fortnox (FNOX) Q1 2025 earnings summary

Executive summary

• Achieved 25% organic growth and 33% EBIT growth in Q1 2025, with net sales of SEK 563 million and EBIT of SEK 246 million.

• Surpassed the average revenue per customer (ARPC) target, reaching SEK 304, meeting a key five-year financial goal.

• Financial services emerged as the fastest-growing segment, with significant traction in factoring and business card usage.

• Customer base grew to 612,000, up from 556,000 year-over-year, though growth was slightly below the previous year due to prior acquisitions.

• Board recommended acceptance of a public offer from EQT X and First Kraft AB at SEK 89.75 per share.

Financial highlights

• Net sales increased by 21% year-over-year to SEK 563 million; organic net sales up 25%.

• EBIT increased to SEK 246 million from SEK 185 million, with a 44% EBIT margin (up from 40%).

• Profit after tax grew 41% to SEK 210 million; EPS before and after dilution was SEK 0.34.

• Free cash flow, adjusted for lending and acquisition, grew by 57% in Q1 to SEK 171 million.

• Cash and cash equivalents at period end were SEK 896 million, up from SEK 377 million.

Outlook and guidance

• Continued focus on strategic changes aligned with a new long-term direction, emphasizing organic growth and expanding financial services.

• ARPC target of SEK 300 achieved; customer number target expected to fall short, but combined five-year growth strategy targets are expected to be met.