Otovo (OTOVO) Q2 2025 earnings summary

Executive summary

• Achieved 15% year-over-year and 22% sequential growth in order intake, with a 9% increase in customer numbers, reflecting strong sales momentum and improved sales execution.

• Revenue rose 22% year-over-year to NOK 152m in Q2 2025, with installations up 29% and backlog up 13% sequentially.

• Implemented a new sales strategy focused on solar panels, batteries, and a service product, gaining market share in a challenging European market.

• Significant cost reductions, including a 39% year-over-year drop in personnel expenses, improved scalability and operational leverage.

• Strategic restructuring, including divestment of the subscription portfolio, reduced non-current assets and liabilities and improved profitability metrics.

Financial highlights

• Revenue for Q2 2025 was NOK 152m, up 22% year-over-year and 21% sequentially.

• Gross profit reached NOK 36m, with a gross margin of 23.9%, up 5.1 points year-over-year.

• EBITDA loss narrowed to NOK -58m from NOK -65m in Q1 2025; operating loss narrowed to NOK 65.9m, a 30% improvement year-over-year.

• Payroll costs reduced by 39% year-over-year to NOK 43.9m due to headcount reduction.

• Cash at quarter-end: NOK 131m, up from NOK 75m in Q1 2025.

Outlook and guidance

• Medium-term outlook is positive, driven by battery demand and market stabilization in residential Europe.

• Management expects continued growth in order intake and revenues in H2 2025, supported by operational streamlining.

• Focus remains on cost discipline, cash preservation, and leveraging structural improvements for margin-accretive growth.

• Short-term demand triggers include heatwaves and blackouts, supporting continued growth.

• Focus on growing order intake, expanding ticket sizes, and maintaining operational leverage to close the gap to profitability.