Paxman (PAX) Q2 2025 earnings summary

Executive summary

• Achieved 17% year-over-year sales growth, reaching 74.9 MSEK in Q2 2025, with organic growth and Dignitana acquisition contributing.

• Integration of Dignitana is progressing, with restructuring and cost synergies expected by year-end.

• Headcount increased to about 140, reflecting the merger and U.S. expansion.

• The group reported a net loss of -3.3 MSEK, impacted by 4.4 MSEK in merger restructuring costs and a 3.6 MSEK currency loss.

• Cash on hand at period end was over SEK 149 million, bolstered by a share issue earlier in the year.

Financial highlights

• Net sales: 74.9 MSEK in Q2 2025, up 17% year-over-year, with organic growth and Dignitana contributing.

• SEK 4.4 million in restructuring costs, mainly from personnel severance and transaction costs.

• EBITDA for the quarter was 5.0 MSEK, down from 14.8 MSEK in Q2 2024, reflecting higher integration and commercialization costs.

• Recurring revenue reached 40.5 MSEK, up 21% year-over-year, with 6.4 MSEK from Dignitana.

• Operating cash flow remained positive, with cash reserves at quarter-end over SEK 149 million.

Outlook and guidance

• Full integration of Dignitana expected by year-end, with cost savings and improved EBITDA margins anticipated.

• Positive momentum expected from new CPT codes and insurance-based billing, with utilization and revenue growth projected for 2025.

• FDA clearance for the new CIPN device expected early next year, with potential delays into Q2; commercialization targeted for 2026.

• Ongoing efforts to improve US reimbursement rates for scalp cooling, with CPT I codes effective January 2026.