Medhelp Care (MEDHLP) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased by 4.8% year-over-year to 22,206 TSEK, driven by new customer additions and a scalable business model.

• EBITDA rose to 4,823 TSEK (21.7% margin), up from 1,990 TSEK (9.4% margin) in Q1 2024, reflecting improved profitability.

• Net income reached 1,737 TSEK, reversing a loss of -315 TSEK in the prior year period.

• Contracted Annual Recurring Revenue (CARR) grew 2.9% year-over-year to 87,208 TSEK.

• Major operational milestones included onboarding a leading telecom client and successful migration of healthcare advisory services to Kry.

Financial highlights

• Gross profit increased to 21,005 TSEK (86.7% margin) from 19,532 TSEK (84.3%) year-over-year.

• Operating income improved to 2,408 TSEK from -575 TSEK in Q1 2024.

• Cash flow from operations was 4,414 TSEK, up from 761 TSEK in Q1 2024.

• Total cash flow for the quarter was 704 TSEK, compared to -2,504 TSEK last year.

• Balance sheet total at quarter-end was 60,703 TSEK, slightly down from 61,748 TSEK a year earlier.

Outlook and guidance

• Management expects growth to gradually improve over the coming year, supported by a scalable cost structure and new customer wins.

• Bruttomarginal is expected to stabilize around 85% following the transition to Kry as healthcare advisory provider.

• Some market uncertainty remains due to macroeconomic conditions, but long-term profitable growth is anticipated.