Nepa (NEPA) Q3 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of bookings growth, with total bookings up 10.1% year-over-year and ARR bookings increasing by more than 200%.

• Underlying ARR grew by nearly 4% (SEK 4.7 million), excluding phased-out contracts and extraordinary churn.

• Business transformation and cost-saving measures initiated in late 2024 have driven improved predictability, resilience, and a return to profitability in Q3 2025.

• New brand tracking platform development and rollout of automated brand tracking architecture are underway, with full rollout planned for early 2026.

• Temporary service disruption in Q3 led to extraordinary costs of 1.7 MSEK, but client impact was limited.

Financial highlights

• Q3 2025 net sales declined 19.1% year-over-year to 48.9 MSEK, mainly due to phased-out contracts and extraordinary churn.

• Subscription revenue showed underlying growth of +4%, but headline subscription revenue was down 23.4%.

• Adjusted EBITDA less CAPEX reached SEK 0.4 million (0.8% margin), a significant improvement from negative H1 results.

• Personnel costs reduced by 19% year-over-year; other external costs down 4% (excluding comparability items).

• SEK 22 million in annual cost savings fully realized in Q3 through restructuring and operational streamlining.

Outlook and guidance

• Strong bookings and underlying subscription revenue growth expected to continue into Q4 and 2026.

• Fiscal year 2025 result expected to remain negative due to H1 losses, but business is positioned for sustainable profitable growth as transformation initiatives take effect.

• No specific forward-looking ARR growth guidance provided, but focus remains on ARR and streamlined contract portfolio.