iZafe Group (IZAFE-B) Q3 2025 earnings summary

Executive summary

• Achieved a fully recurring revenue model, with all Q3 net sales from license revenues and no hardware sales, marking a shift from last year’s hardware-driven revenue.

• Annual Recurring Revenue (ARR) reached 7 MSEK at the start of Q4, a fourfold increase since the beginning of the year, with a target of 10 MSEK ARR in Q4.

• Completed the acquisition of the exclusive Dutch distributor, now Dosell B.V., strengthening growth, margins, and cash flow.

• Signed a distribution agreement for Dosell in Finland and launched a shareholder loyalty program.

• Board members acquired 156,000 Class B shares post-quarter, signaling confidence in the company’s strategy.

Financial highlights

• Q3 net revenue: 1,102 TSEK (down from 2,031 TSEK YoY), entirely from recurring license revenues.

• EBIT for Q3: -3,273 TSEK (improved from -4,148 TSEK YoY).

• EBITDA for Q3: -2,297 TSEK (improved from -3,166 TSEK YoY).

• Result after financial items: -3,537 TSEK (improved from -4,955 TSEK YoY).

• Cash flow from operating activities: -2,890 TSEK (vs. -2,913 TSEK YoY).

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

• Equity per share: 0.05 SEK (vs. 0.06 SEK YoY).

• Equity ratio: 41.0% (vs. 58.0% YoY).

• Cash and cash equivalents at period end: 4,848 TSEK (up from 2,150 TSEK at 2024 year-end).

Outlook and guidance

• ARR expected to increase by at least 1 MSEK per month for the rest of the year, with a Q4 target of 10 MSEK.

• Focus remains on rapid, profitable growth, building cash flow, and expanding leadership in European digital medication management.

• Liquidity is secured for the next 12 months based on current reserves, cost savings, and future contracts.