Karnov Group (KAR) Q4 2025 earnings summary

Executive summary

• Achieved 4% organic growth in Q4 2025, driven by AI adoption and online sales, with Region North leading at 10% organic online sales growth.

• Adjusted EBITDA/EBITA margin improved to 26% in Q4, up over 2 percentage points year-over-year, with leverage reduced to 1.3x, reflecting improved profitability and operational efficiency.

• AI user base grew fivefold in 2025, with strong customer adoption and successful renewal season in Region North.

• Completed divestment of EHS, generating SEK 1.1 billion in proceeds, and initiated a SEK 500 million share buyback program.

• Strategic focus on AI-powered workflow tools and integration of proprietary content, with a Common AI Platform launching across all geographies in Q1 2026.

Financial highlights

• Q4 net sales reached SEK 665 million; organic growth 3.8%, with online sales up 5% in local currencies, offset by currency effects and divestments.

• Adjusted EBITDA/EBITA for Q4 was SEK 172 million (26% margin); full-year Adjusted EBITDA/EBITA increased to SEK 667 million, margin 25.3%.

• Adjusted free cash flow in Q4 was SEK 239 million; full year SEK 445 million.

• Earnings per share (diluted): Q4 SEK 7.79; full year SEK 8.98.

Outlook and guidance

• Confident in medium-term financial targets for Region South and group: 4-6% organic annual growth, adjusted EBITA margin >25%, leverage ≤3.0.

• Common AI Platform to be operational across all geographies by end of Q1 2026, enabling scalable launches of workflow tools.

• Workflow tools launch planned for late June 2026, with monetization likely seat-based and pricing under expert review.

• No dividend proposed for 2026; focus on organic AI investments and share buybacks.