Paxman (PAX) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 sales of 67.1 MSEK, up 14.5% year-over-year, with 17% growth in the U.S. and strong international expansion.

• Completed merger with Dignitana, significantly increasing U.S. installed base and creating operational synergies.

• EBITDA for the quarter was 10.3 MSEK with a 15% margin, down from 11.7 MSEK in Q1 2024.

• Net loss of -4 MSEK, mainly due to a SEK 11.5 million forex loss from intercompany loans.

• Focused on expanding U.S. reimbursement, commercializing CIPN, and transitioning to a multi-product company.

Financial highlights

• Q1 sales grew 14.5% year-over-year, with recurring income rising 19% to 35.6 MSEK.

• Average Daily Treatment Revenue (ADTR) rose 32% to 51.5 TUSD in Q1 2025.

• Operating profit was 6.2 MSEK, down from 7.4 MSEK in Q1 2024, impacted by higher personnel and service costs.

• Ended the quarter with strong operating cash flow of 6.2 MSEK and cash on hand of 152.7 MSEK.

• Raised SEK 120 million through a directed share issue, strengthening the balance sheet for future investments.

Outlook and guidance

• 2025 focus areas include U.S. reimbursement, international growth, and CIPN commercialization.

• Transitioning U.S. facilities to insurance-based billing ahead of CPT I code implementation in 2026.

• Expects clinical data for CIPN and regulatory updates in Q3/Q4, with milestones in July and November for U.S. insurance coverage.

• Continued investment in R&D and expansion into new markets.

• Relocation to a new state-of-the-art headquarters and manufacturing hub in Huddersfield planned for late 2026/2027.