Hemnet Group (HEM) Q1 2025 earnings summary

Executive summary

• Net sales grew by 29.6% year-over-year to SEK 329 million, driven by strong property seller segment performance, high ARPL, and demand for value-added services.

• EBITDA increased by 32% to SEK 158 million, with a margin of 47.9%, reflecting strong operational leverage and profitability.

• Hemnet Max, a new premium seller package, launched on April 1 after Q1, marking a strategic milestone and diversifying offerings.

• Swedish property market remained stable with high supply, extended listing times, and nearly three million unique weekly users.

• Continued investments in product development and marketing to solidify market position and support future growth.

Financial highlights

• Net sales reached SEK 329 million, up 29.6% year-over-year, with ARPL rising 36.9% to SEK 6,722.

• EBITDA was SEK 157.5 million, up 31.6%, and free cash flow (LTM) reached SEK 740 million.

• Published listings in Q1 were 41,200, up 0.2% year-over-year.

• Cash conversion remained high at 97.5–98% and leverage improved to 0.5x EBITDA.

• Dividend proposed at SEK 1.70 per share, up 42% from last year.

Outlook and guidance

• Investments in product and marketing to continue, with OpEx growth rate projected to decline in 2025.

• Hemnet Max expected to be a long-term growth driver, supporting future ARPL and revenue growth.

• Market expected to remain cautious amid macroeconomic uncertainty, with high supply and longer time to market.

• Hemnet targets annual net sales growth of 15–20% and a long-term adjusted EBITDA margin above 55%.

• Net debt/EBITDA target remains below 2.0x; current ratio is 0.5x.