Hemnet Group (HEM) Q3 2025 earnings summary

Executive summary

• Net sales in Q3 2025 declined 1.5% year-over-year to SEK 366.7 million, mainly due to a 19.2% drop in published listings amid a challenging property market.

• ARPU/ARPL grew 21%/20.9% year-over-year, driven by strong demand for value-added services and higher-tier packages.

• EBITDA fell 5.9% to SEK 195.4 million, with an EBITDA margin of 53.3%, 2.5 percentage points lower than Q3 2024.

• Strategic initiatives included a pilot for a pay-on-sale commercial model and new partnerships with franchisors, brand owners, agents, and developers.

• Product innovation accelerated, including the launch of Hemnet Insights (AI-powered analytics), enhanced CRM functionality, and new data tools.

Financial highlights

• Free cash flow (LTM) reached SEK 808 million, up 36% year-over-year; free cash flow conversion was 87%.

• Net debt leverage improved to 0.5x from 0.6x a year ago; net debt at SEK 392–426.9 million.

• Share buybacks totaled SEK 149 million in Q3 and SEK 408.8 million in 2025, as part of a SEK 600 million mandate.

• Operating profit in Q3 was SEK 171.3 million (down 7.8%); profit after tax SEK 132.4 million (down 6.4%).

• Cash flow from operating activities in Q3 was SEK 173.8 million, up 31.8% year-over-year.

Outlook and guidance

• Continued investment in marketing, talent, and product development is planned, with operational leverage targeted for 2026 and beyond.

• Growth ambition of 15%-20% remains, with future growth expected from value-based pricing and higher VAS penetration.

• The new pay-on-sale model and strategic partnerships are expected to roll out more broadly in 2026 to drive volume and market efficiency.

• Market remains challenging with high supply, long listing durations, and hesitant consumer sentiment.

• Lower interest rates, stabilizing inflation, and easing mortgage regulations are expected to support future activity.