Lime Technologies (LIME) Q1 2025 earnings summary

Executive summary

• Achieved 11% year-over-year revenue growth in Q1 2025, with ARR up 14% and adjusted EBITA/EBITDA margin at 25%, despite macroeconomic headwinds and a cyberattack on Sportadmin.

• Growth was primarily driven by strong new subscription sales, with recurring revenue now at 66% of total revenue.

• Order intake from new sales exceeded recent quarters, while sales to existing customers, especially in Expert Services, remained subdued due to longer decision cycles.

• Continued investment in recruitment and employee development, hiring around 40 new staff and maintaining a strong talent pipeline.

Financial highlights

• Net sales for Q1 2025 were SEK 188.3 million, up 11% year-over-year; recurring revenue grew 16% to SEK 122.4 million.

• Adjusted EBITA for Q1 2025 was SEK 47.2 million (margin 25%), up 14% year-over-year.

• LTM net sales reached SEK 704.8 million, a 17% increase from the previous period.

• Service agreement revenue decreased by 31% as customers transition to subscriptions.

• Cash flow from operating activities was SEK 53.2 million, down from SEK 62.7 million year-over-year.

Outlook and guidance

• Management targets annual net sales growth above 18% and EBITA/EBITDA margin above 25%.

• No specific guidance on when revenue growth will return to 18–20%, with focus on organic growth and selective acquisitions.

• Order intake exceeded recent quarters, supporting a positive outlook for the remainder of 2025.

• No material impact from the Sportadmin cyberattack is expected in Q2 2025.

• Dividend policy targets at least 50% of annual net income, with a recent payout of SEK 4.00 per share.