Net Insight (NETI) Q2 2025 earnings summary

Executive summary

• Q2 revenue rebounded to SEK 143 million, up 24% from Q1, driven by a major media order and improved performance across all regions, especially the Americas.

• Media revenues improved in Q2 2025 despite market uncertainty and risk of delayed orders; strong demand persists for products and services.

• Secured one of the largest media deals in company history, including a major USD 6 million order in the US, and the first time synchronization deal in the media market.

• Cost-saving program initiated, targeting SEK 30 million in annual savings, with full effect expected by Q1 2026.

• EBITDA margin dropped to 9.7% from 33.4% year-over-year, impacted by restructuring costs and currency effects.

Financial highlights

• Q2 revenue: SEK 143 million, up 24% sequentially; adjusted year-over-year growth of 4% excluding a SEK 30 million one-off software deal and FX effects.

• Gross margin for Q2 was 68.8%, slightly below the three-year average, impacted by FX headwinds and lower margin on the large media deal.

• Adjusted EBITDA for Q2 was SEK 23.9 million (16.7% margin); last 12 months EBITDA SEK 112.9 million (20.6% margin).

• Operating margin for Q2 was 0.2% (SEK 0.3 million); last 12 months operating margin 3.9%.

• Net cash at quarter end: SEK 98 million; available liquidity including credit facility: SEK 148 million.

Outlook and guidance

• Expectation of increased operating earnings and EBITDA in the second half of the year.

• Healthy market activity and strong customer engagement expected in the second half of the year.

• Time synchronization segment expected to ramp up with new customer deployments starting late 2024 into 2025.

• Cost savings from restructuring to be fully realized by Q1 2026.

• Financial targets: average annual organic net sales growth >15% and EBIT margin of 20% by 2027.