Neovici (NEO) Q3 2025 earnings summary

Executive summary

• Revenue for January–September 2025 increased by 44.9% year-over-year to 74.6 MSEK, driven by the acquisition and consolidation of Wraptech Svenska AB.

• Annual Recurring Revenue (ARR) rose 23.6% to 84.8 MSEK, reflecting growth with existing customers, new contracts, and Wraptech integration.

• The company is transitioning to scalable, standardized processes and focusing on autonomous, real-time operational and financial flows.

• Wraptech contributed significantly to revenue growth and improved profitability, though with a lower margin profile than the flagship Cosmoz platform.

• Strategic milestones include the implementation of Cosmoz at a leading Swedish industrial group and ongoing efforts to secure new financing.

Financial highlights

• Q3 2025 revenue was 25.3 MSEK, up 58.0% from Q3 2024.

• Q3 gross profit was 15.7 MSEK (62.0% margin), down from 69.1% margin in Q3 2024 due to Wraptech's lower-margin product mix.

• Q3 EBITDA was -6.0 MSEK (-23.9% margin); adjusted EBITDA (excluding 5.0 MSEK in one-time costs) was -1.0 MSEK.

• Net loss after tax for Q3 was -9.0 MSEK; for the nine months, -30.1 MSEK.

• Cash flow from operations for the nine months was -3.3 MSEK, a significant improvement from -22.8 MSEK in the prior year.

Outlook and guidance

• Focus remains on securing additional financing to support expansion and on further commercializing Cosmoz and Wraptech.

• The next phase targets scalable expansion, deeper automation, and increased operational leverage.

• Management expects Wraptech to be profitable for the full year.