iZafe Group (IZAFE-B) Q1 2025 earnings summary

Executive summary

• Net revenue for Q1 2025 was 1,318 TSEK, primarily from recurring license revenues, marking a shift from hardware-driven sales in the prior year.

• Operating result (EBIT) improved to -3,519 TSEK from -5,569 TSEK year-over-year, reflecting a more profitable revenue mix and operational efficiency.

• The company is experiencing strong momentum in Sweden, the Netherlands, and Spain, with new municipal and pharmacy partnerships driving growth.

• A directed share issue raised approximately SEK 9.2 million to support working capital and international expansion.

• The recurring revenue model is scaling, with ARR surpassing 3 MSEK at quarter-end.

Financial highlights

• Net revenue: 1,318 TSEK (down from 3,410 TSEK year-over-year).

• EBIT: -3,519 TSEK (improved from -5,569 TSEK year-over-year).

• EBITDA: -2,538 TSEK (improved from -4,588 TSEK year-over-year).

• Net result: -3,779 TSEK (improved from -5,609 TSEK year-over-year).

• Earnings per share: -0.01 SEK (vs. -0.02 SEK year-over-year).

• Cash flow from operating activities: -7,013 TSEK (vs. -4,109 TSEK year-over-year).

• Cash and cash equivalents at period end: 718 TSEK (vs. 2,150 TSEK at Dec 31, 2024).

Outlook and guidance

• ARR at quarter-end exceeded 3 MSEK, supporting the company’s financial targets for 2025.

• The recurring revenue model is expected to drive profitability and cash flow positivity as more Dosell units are activated.

• The company expects continued growth in Sweden, the Netherlands, and Spain, with new partnerships and market entries planned.

• Liquidity for the next 12 months is considered secured, with additional proceeds from the share issue expected in Q2.