Net Insight (NETI) Q4 2025 earnings summary

Executive summary

• Q4 and full year 2025 were challenging, with revenue and profitability below expectations due to FX headwinds, macro uncertainty, weak demand, and longer sales cycles.

• Cost reduction and control measures were implemented, resulting in SEK 30 million in annual run rate savings and improved cost discipline.

• First commercial order for the 400G media platform was secured in Q4, marking a key milestone.

• Strategic focus areas include portfolio enhancement (cloud, unmanaged, new compression tech), sales efficiency, and accelerating time synchronization conversions.

• New sales organization and leadership, including a new CEO and CCO, were established in early 2026.

Financial highlights

• Q4 revenue: SEK 117 million (down 12% YoY); full year revenue: SEK 521 million (down 14%).

• Gross margin: 68.5% in Q4, 67.4% for the year; EBITDA (excl. one-offs): SEK 17.9 million (Q4), SEK 102.2 million (full year).

• Operating expenses declined 13% YoY in Q4, reflecting cost reduction program.

• Q4 operating earnings: SEK -4.4 million (margin -4%); full year: SEK 8.8 million (margin 2%).

• Year-end net cash: SEK 83 million; available liquidity: SEK 168 million.

Outlook and guidance

• Short-term revenue expected to be volatile due to timing of orders, especially in time synchronization.

• Long-term financial targets remain unchanged, but achieving them by 2027 is now more challenging.

• Growth in time synchronization and upselling to existing media customers are key to meeting long-term targets.