Neovici (NEO) Q2 2025 earnings summary

Executive summary

• Signed a five-year automation contract with a leading Swedish industrial group, valued at up to 35 MSEK, marking a major commercial breakthrough and supporting recurring revenue growth.

• Continued international expansion, notably in Southeast Asia, and completed the acquisition and integration of Wraptech, contributing to revenue and ARR growth.

• Faced challenges in financing and ended a partnership with Aida Ek AB, but secured 9.6 MSEK in new funding and is actively seeking additional financing partners.

Financial highlights

• Net sales for Q2 2025 increased by 19.5% year-over-year to 26.4 MSEK; for H1 2025, net sales rose 39.3% to 49.4 MSEK.

• Annual Recurring Revenue (ARR) grew 24.6% year-over-year to 84.5 MSEK.

• Gross profit for Q2 was 16.8 MSEK (margin 63.5%), and for H1 was 29.7 MSEK (margin 60.1%), with margin decline due to Wraptech's lower-margin product mix.

• EBITDA for Q2 was -5.7 MSEK (margin -21.8%), and for H1 was -14.3 MSEK (margin -29.0%).

• Net result after tax for Q2 was -8.7 MSEK; for H1, -21.1 MSEK.

• Cash flow from operations improved to 1.8 MSEK in Q2 (from -9.7 MSEK), and to -1.6 MSEK for H1 (from -20.8 MSEK).

Outlook and guidance

• Focus remains on securing additional financing to support continued expansion and growth.

• Ongoing international expansion, especially in Asia, and a strong sales pipeline are expected to drive future growth.

• Wraptech is expected to be profitable on a full-year basis, supporting the acquisition-driven growth strategy.