Lime Technologies (LIME) Q2 2025 earnings summary

Executive summary

• Achieved 5% year-over-year sales growth and 13% ARR growth in Q2 2025, with a 25% adjusted EBITA margin and strong profitability despite a challenging macroeconomic climate.

• Recurring revenue now represents 67% of total revenue, surpassing SEK 500 million in ARR, reflecting a strategic shift toward subscription-based models and vertical focus.

• Expanded presence to seven markets, with breakthrough deals in Germany and the acquisition of PlanPlan supporting international growth.

• Over 1,000,000 users and 7,500 customers across 12 offices in 7 countries, with a sticky customer base.

• Sport Admin fully recovered from the January cyberattack and is exploring further acquisitions.

Financial highlights

• Q2 2025 net sales reached SEK 183.0 million (up 5% year-over-year); ARR grew 13% to surpass SEK 500 million.

• Q2 adjusted EBITA was SEK 45.0 million (25% margin); LTM net sales increased to SEK 713.3 million, up 13% from the prior period.

• Q2 2025 recurring revenue was SEK 124.2 million (up 12%); software revenues accounted for 68% of Q2 net sales.

• Personnel expenses rose 7% in Q2, mainly due to increased headcount and acquisitions; other operating expenses decreased 2%.

• Net income in Q2 2025 was SEK 26.1 million; cash flow from operating activities in Q2 was SEK 49.1 million.

Outlook and guidance

• Management expects improved growth in the second half, driven by a strong pipeline in CRM and increased sales activities in LimeGo and Connect.

• Medium-term objective is annual net sales growth above 18% and EBITA margin above 25%.

• Internationalisation and selective acquisitions remain key strategic priorities, with an active acquisition pipeline but no imminent deals.

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

• Cautious optimism for upselling and expert services as market conditions normalize, with ongoing investments in sales capacity.