Oneflow (ONEF) Q1 2025 earnings summary

Executive summary

• ARR grew 23% year-over-year to SEK 165 million at Q1 end, with 4,300 paying customers, up 17% year-over-year, and ACV at SEK 38,000.

• Net sales reached SEK 39 million, a 27% increase compared to Q1 last year, with 40% of sales outside Sweden and customers in 40 countries.

• Focus has shifted from maximizing growth to achieving profitability in the short term, with a long-term goal to return to 30%+ ARR growth.

• EBIT loss narrowed to SEK -19.4 million, with EBIT margin improving to -49% from -70% year-over-year.

• Net income improved to SEK -19.2 million from -21.3 million in the same quarter last year.

Financial highlights

• Net new ARR for the quarter was SEK 5.6 million, impacted by a SEK 3.4 million currency headwind; excluding FX, net new ARR would have been SEK 9 million.

• Gross margin remained strong at 92%, supporting scalability; recurring revenues accounted for 98% of net sales.

• EBITDA was SEK -8.6 million, margin -22%, both improved year-over-year.

• ARR per full-time employee rose 28% to SEK 905,000.

• Cash flow from operations improved to SEK -4.1 million; cash and equivalents at SEK 84.3 million.

Outlook and guidance

• Short-term ARR growth above 30% is not expected due to the focus on profitability and current market conditions.

• Long-term target remains ARR growth above 30% and profitability with current funds.

• Management expects continued EBIT improvement throughout 2025.

• No specific timeline disclosed for reaching profitability or cash flow neutrality.

• No dividends planned; cash flows to be reinvested in growth initiatives.