Hemnet Group (HEM) Q4 2025 earnings summary

Executive summary

• Net sales grew 9.5% year-over-year to SEK 1,526.8m, despite a 13.3% drop in published listings, driven by strong ARPL growth and value-added services.

• Q4 net sales declined 4.4% to SEK 348.1m, with listing volumes down 26.4% and EBITDA margin at 44.2%.

• EBITDA increased 6.6% to SEK 767.5m for the year, with a full-year EBITDA margin of 50.3%.

• Strategic initiatives such as Sell First, Pay Later and over 60 new agent partnerships were launched to address market changes and drive growth.

• Continued investment in AI and product innovation, including conversational search, personalized starting pages, and a ChatGPT app.

Financial highlights

• Q4 net sales: SEK 348.1m (-4.4% YoY); full-year: SEK 1,526.8m (+9.5% YoY); Q4 EBITDA: SEK 153.7m (-12.8% YoY); full-year EBITDA: SEK 767.5m (+6.6% YoY).

• Q4 ARPL: SEK 10,916 (+29.2% YoY); full-year ARPL: SEK 8,175 (+28.1% YoY).

• Free cash flow: SEK 745.4m (+7.1% YoY); cash conversion above 96%.

• Dividend proposed at SEK 1.90 per share, up 12% from last year.

• Earnings per share (diluted) for the year were SEK 5.48, up 9.6% year-over-year.

Outlook and guidance

• 2026 outlook is positive, with easing credit restrictions, improved macroeconomic conditions, and new product rollouts expected to boost market activity.

• Multiple growth levers identified: further ARPL expansion, dynamic pricing, new payment models, and B2B product enhancements.

• Short-term revenue recognition and cash flow will be impacted by SFPL adoption, with transparency ensured via monthly sales reporting in 2026.

• Long-term financial targets: annual net sales growth of 15-20%, adjusted EBITDA margin >55%, net debt/EBITDA <2.0x.