Irisity (IRIS) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw high commercial activity, but net sales declined due to delays in international AI projects and currency headwinds, with expectations for stronger Q4 performance.

• New customer wins included a significant government project in Mexico and a new OEM partnership in Saudi Arabia, expected to drive future growth.

• Strategic cost reviews and personnel adjustments were initiated to achieve cash flow positive results in upcoming quarters.

Financial highlights

• Net sales for Q2 2025 were MSEK 17.9, down from MSEK 25.8 in Q2 2024; H1 2025 net sales were MSEK 36.0, down from MSEK 53.4 year-over-year.

• Gross margin improved to 78.8% in Q2 2025 from 75.2% in Q2 2024, but H1 2025 gross margin fell to 72.8% from 79.0% year-over-year.

• EBITDA for Q2 2025 was MSEK -12.0, nearly flat YoY; H1 2025 EBITDA was MSEK -30.8, down from MSEK -14.7 year-over-year.

• Result after tax for Q2 2025 was MSEK -37.9, an improvement from MSEK -40.7 in Q2 2024; H1 2025 result after tax was MSEK -87.4, compared to MSEK -71.7 year-over-year.

• Cash and available credit lines at quarter-end were MSEK 8.8, down from MSEK 26.5 a year earlier.

Outlook and guidance

• Q3 2025 net sales are expected to remain lower YoY due to timing of revenue recognition, but a much stronger Q4 is anticipated.

• Commercial activity and pipeline remain robust, with increased leads and project quotes for H2 2025.

• Focus remains on MRR growth and cost reductions to achieve cash flow positive results.