Mips (MIPS) Q3 2025 earnings summary

Executive summary

• Achieved 19% organic growth in Q3 2025, with all categories delivering growth despite challenging market conditions and US tariff uncertainties.

• Europe delivered 73% growth, marking the fourth consecutive quarter above 50% growth, while the US market saw modest growth amid headwinds.

• Year-to-date organic growth reached 22%.

• Underlying profitability improved, but EBIT declined by 7% to SEK 44m due to SEK 13m in legal costs and Forex headwinds.

• Long-term outlook and financial targets remain unchanged.

Financial highlights

• Q3 net sales increased 10% to SEK 135m, with organic growth of 19%.

• Gross profit rose 11% to SEK 100m, with gross margin at 74.2% (up 0.8pp year-over-year), driven by sales mix.

• EBIT down 7% to SEK 44m, with EBIT margin at 32.6% (down 6pp); excluding legal costs, EBIT margin was 42.1%.

• Operating cash flow was SEK 41m in Q3; SEK 96m for the first nine months.

• Equity ratio at 86%; cash and equivalents of SEK 280m; no loans.

Outlook and guidance

• Expect continued positive progress, especially from Europe, with less impact from tariffs.

• Safety category sales expected to resume doubling every 6–12 months within 1–2 quarters.

• Q4 anticipated to show further progress over Q3, driven by strong European performance.

• U.S. market growth expected to remain modest, with gains mainly from market share.

• Legal costs expected to remain similar in Q4, then decrease in 2026.