iZafe Group (IZAFE-B) Q3 2025 earnings summary

Executive summary

• Achieved annual recurring revenue (ARR) target, growing from SEK 1.7 million to SEK 10 million entering 2026, with over 1,000 active units and strong municipal demand.

• Transitioned to a fully recurring revenue model, with Q4 net sales of 2,435 TSEK, all from license revenues, and no hardware sales compared to the prior year.

• Expanded Nordic presence with new distribution agreements in Iceland and Norway, and consolidated Dutch operations.

• Launched new modular external display and remote care system for Dosell after the quarter, enhancing product flexibility.

Financial highlights

• Hardware sales provide revenue but low or negative margins, serving as an enabler for high-margin recurring license income (90-95% margin).

• Q4 net sales: 2,435 TSEK, entirely from recurring license revenues; Q4 EBIT: -5,714 TSEK; Q4 EBITDA: -3,888 TSEK.

• Q4 net result: -4,857 TSEK; EPS: -0.01 SEK; full-year net sales: 5,991 TSEK; full-year net result: -16,839 TSEK.

• Cash and cash equivalents at year-end: 1,673 TSEK.

• Acquisition of distributor at year-end shifts hardware sales internally, increasing recurring license revenue on markets where direct sales occur.

Outlook and guidance

• Entering 2026 with ARR of 10 MSEK and a stable, growing base, with growth expected in both the number of municipalities and units per municipality.

• Forecasts are based on current growth rates, independent of potential Adda contract wins.

• Expansion plans include hiring in the Netherlands and Sweden to support scaling and customer implementation.

• Focus for 2026 on expanding customer base and increasing penetration among existing customers.