Litium (LITI) Q2 2025 earnings summary

Executive summary

• Achieved 11.7% year-over-year growth in Annual Recurring Revenue (ARR), reaching 84.4 MSEK as of June 30, 2025, with strong sales momentum and low churn.

• Net sales increased by 2.6% to 19.0 MSEK in Q2, with 100% of revenue from recurring sources, primarily subscriptions.

• Adjusted ARR definition to a forward-looking model, aligning with SaaS industry standards for better transparency and comparability.

• Strengthened leadership with new CTO and CCO appointments to drive scalable growth.

• Continued investment in product development, security, and go-to-market initiatives to support digital commerce growth.

Financial highlights

• Q2 EBITDA was 3.3 MSEK (down from 4.3 MSEK year-over-year); EBIT was -1.3 MSEK (down from 0.1 MSEK); net result per share was -0.08 SEK (down from 0.01 SEK).

• Gross margin remained strong at 69.0% (68.9% last year).

• Investments increased by 20.3% to 5.9 MSEK; cash at period end was 4.2 MSEK (down from 7.8 MSEK).

• Solid equity ratio at 81.2% (82.3% last year).

• Cash flow for the period was -3.5 MSEK (vs. -2.7 MSEK last year).

Outlook and guidance

• Management expects continued positive ARR and sales growth, supported by investments in technology and market expansion.

• Ongoing platform migration may cause short-term revenue fluctuations, but ARR is seen as the best indicator of future growth.

• Optimism for increased growth and improved EBIT in the remainder of the year.