Lime Technologies (LIME) Q3 2025 earnings summary

Executive summary

• Achieved 11% year-over-year revenue and sales growth in Q3 2025, with 13% ARR growth and a 25% adjusted EBITA/EBITDA margin, driven by strong new sales, key deals in Germany, and AI integration.

• Over 1 million users, 7,500+ customers, presence in seven countries, and 500+ employees.

• Focused on long-term profitable growth, increasing recurring revenue, and verticalization in key sectors such as utilities, real estate, wholesale, and membership organizations.

• Notable wins in utilities, especially a record deal in Germany, and ongoing success in vertical-specific AI solutions.

Financial highlights

• Q3 2025 net sales: SEK 175.1M (up 11% year-over-year); recurring revenue: SEK 126.5M (up 13%).

• Adjusted EBITA/EBITDA margin reached 25% in Q3, with adjusted EBITA of SEK 43.7M; LTM adjusted EBITDA was SEK 183.5M.

• Recurring revenue now represents 67–76% of total revenue; subscription revenue grew 16–20% year-over-year.

• Service agreement revenue declined 39% as planned, reflecting transition to subscriptions.

• Net income for Q3: SEK 25.4M; basic EPS: SEK 1.91 (up from 1.61).

Outlook and guidance

• Management targets annual net sales growth above 18% and EBITA margin above 25% in the medium term.

• Aims to strengthen growth, increase recurring revenues, and deliver mission-critical value across Europe, with focus on ARR and international expansion.

• Expects higher growth in Europe outside Sweden, leveraging momentum in Germany, Norway, and Finland.

• Ongoing investments in sales and expert services, especially in Germany, to capitalize on larger deal sizes and market potential.