Frontwalker (FRWA) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was SEK 10.2 million, down 44% year-over-year, mainly due to the sale of Tavana IT; adjusted for this, the decline was about 20% in line with the market.

• EBITA improved to SEK -3.6 million from SEK -13.6 million year-over-year, reflecting lower losses despite a challenging market.

• Net result was SEK -3.6 million, or SEK -0.03 per share, compared to SEK -13.6 million and SEK -0.11 per share in Q1 2024.

• Two new subsidiaries, Frontwalker AIDA (AI solutions) and Frontwalker DRIVE (management consulting), were established to drive growth.

• The company continues to focus on long-term value creation, direct customer relationships, and a ventures-driven growth strategy.

Financial highlights

• Net sales: SEK 10.2 million (Q1 2024: SEK 18.3 million); EBITDA: SEK -3.4 million (Q1 2024: SEK -13.3 million).

• EBITA: SEK -3.6 million (Q1 2024: SEK -13.6 million); Net result: SEK -3.6 million (Q1 2024: SEK -13.6 million).

• Cash flow from operations: SEK -3.7 million (Q1 2024: SEK -4.5 million); available liquidity at period end: SEK 3.4 million.

• Equity at period end: SEK 10.3 million (Q1 2024: SEK 23.8 million); equity per share: SEK 0.08.

• No outstanding option programs; total shares: 124,863,081.

Outlook and guidance

• Gradual market stabilization and increased demand for IT development and expertise are expected.

• The company aims for organic growth, complemented by small acquisitions, targeting SEK 200 million in net sales and at least 8% EBITA margin by end of 2027.

• Ventures model to drive focused, rapid growth with several new subsidiaries planned annually.

• Well positioned for increased demand in digital accessibility due to upcoming regulations for private sector in June 2025.