Frontwalker (FRWA) Q2 2025 earnings summary

Executive summary

• Revenue declined 30% in Q2 2025 to SEK 9.0m and 39% for H1 to SEK 19.1m year-over-year, reflecting a challenging market but with signs of stabilization and increased customer inquiries.

• EBITA for Q2 was SEK -6.1m (vs. -2.4m), and H1 EBITA improved to SEK -9.7m (vs. -16.0m), with net loss after tax at SEK -6.3m for Q2 and SEK -10.0m for H1.

• Strategic focus on growth through entrepreneur-driven Ventures, with two new subsidiaries (AIDA and DRIVE) launched in H1.

• Strengthened capital base via a directed share issue of SEK 18.6m and new leadership hires to support growth and innovation.

Financial highlights

• Q2 net sales: SEK 9.0m (Q2 2024: SEK 13.0m); H1 net sales: SEK 19.1m (H1 2024: SEK 31.2m).

• Q2 EBITA: SEK -6.1m (Q2 2024: SEK -2.4m); H1 EBITA: SEK -9.7m (H1 2024: SEK -16.0m).

• Q2 net result after tax: SEK -6.3m (Q2 2024: SEK -2.3m); H1 net result: SEK -10.0m (H1 2024: SEK -15.9m).

• Cash flow from operations in H1: SEK -6.5m; available liquidity at period end: SEK 5.9m.

• Equity at period end: SEK 4.0m (H1 2024: SEK 21.5m); no outstanding options programs.

Outlook and guidance

• Positioned for a strategic turnaround with focus on profitable growth and a plan to expand consultant base by at least 35% in H2 2025.

• Targets by end of 2027: net sales of SEK 200m and EBITA margin of at least 8%.

• Anticipates gradual market recovery and increased demand for IT development and digitalization services.