Irisity (IRIS) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong sales growth in Sweden, but international AI project sales were delayed due to global economic uncertainty and a weaker US Dollar.

• Net sales for Q1 2025 were MSEK 18.1, down from MSEK 27.6 in Q1 2024, with EBITDA at MSEK -18.8 and result after tax at MSEK -49.5.

• Collections increased 39.4% year-over-year, while invoicing was up 1.4%.

• Cost-saving measures led to a 16% reduction in personnel costs year-over-year.

• Successful launch of a new smart city AI use case in South America, expanding beyond security applications.

Financial highlights

• Net sales: MSEK 18.1 (Q1 2025) vs. MSEK 27.6 (Q1 2024), a decrease of 34%.

• Gross margin: 66.8% (Q1 2025) vs. 82.7% (Q1 2024).

• EBITDA: MSEK -18.8 (Q1 2025) vs. MSEK -3.3 (Q1 2024).

• Result after tax: MSEK -49.5 (Q1 2025) vs. MSEK -31.0 (Q1 2024).

• Cash and available credit lines: MSEK 14.1 (Q1 2025) vs. MSEK 15.2 (Q1 2024).

Outlook and guidance

• Net sales are expected to remain lower year-over-year for the next two quarters due to revised revenue recognition timing, with stronger performance anticipated in Q4.

• Sales growth is expected from the new IRIS+ Professional software and Security-as-a-Service in Sweden.

• Large delayed projects and collections are expected to be completed in Q2 2025.