Lemonsoft (LEMON) Q4 2025 earnings summary

Executive summary

• Completed technology transformation to Azure by April 2025, followed by organizational restructuring, renewed management team, and a clarified strategy focusing on manufacturing and wholesale segments.

• Reduced headcount by 30 to 193, renewed management team, and acquired a 76% stake in Jakamo Oy to strengthen manufacturing and procurement capabilities.

• Emphasized AI integration in product development and internal processes, aiming for efficiency and enhanced customer value.

• Strategic focus clarified for 2026, emphasizing selected customer segments, technology upgrades, and cost efficiency.

Financial highlights

• Net sales for 2025 reached €29.5 million, up 1.9% year-over-year, driven by 6.8% SaaS income growth.

• Adjusted EBIT margin improved to 23.6% of net sales; profit for the period rose 8.2% to €4.4 million.

• Q4 net sales declined 3.5% year-over-year to €7.4 million; gross margin for 2025 was 82.6%, slightly lower due to platform transition costs.

• Recurring revenue reached a record 85.4% in Q4; SaaS revenue grew 1.9% in Q4.

• Cash flow from operations was €3.1 million in Q4 and €8.5 million for the year, mainly due to working capital optimization.

Outlook and guidance

• 2026 guidance: net sales growth of 5–13% over 2025, with adjusted EBIT targeted at 23–29% of net sales.

• Profitability expected to improve due to cost reductions and declining Azure migration costs.

• Market conditions for manufacturing and wholesale segments expected to gradually improve, though geopolitical uncertainty remains.