Nepa (NEPA) Q3 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of bookings growth, with sales bookings up 10.1% year-over-year and ARR bookings surging 245.7%.

• Returned to profitability in Q3 2025, with Adjusted EBITDA - Capex at 0.4 MSEK (0.8% margin), driven by cost reductions and operational streamlining.

• Business transformation focused on recurring products, phasing out low-margin contracts, and optimizing the cost base, improving predictability and resilience.

• New brand tracking platform development and rollout planned for early 2026 to enhance scalability and product innovation.

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

Financial highlights

• 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% year-over-year, despite headline decline.

• Adjusted EBITDA - Capex improved to 0.4 MSEK (0.8% margin), up from negative results in H1.

• Personnel costs reduced by 19% year-over-year, reflecting realized cost-saving initiatives.

• Gross margin improved slightly to 74.2% (Q3 2024: 73.7%).

Outlook and guidance

• Full-year 2025 Adjusted EBITDA - Capex expected to remain negative due to H1 losses, but business is positioned for sustainable, profitable growth as transformation initiatives take effect.

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

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