Paxman (PAX) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales reached 64.8 MSEK, a 6% increase year-over-year, marking the highest sales to date, with strong growth in the US and recurring income streams.

• Net profit for the quarter was 5.0 MSEK, down from 7.4 MSEK in Q3 2023, impacted by lower margin VA sales and increased personnel costs.

• Recurring income rose to 41.4 MSEK, up 29% from Q3 2023, and Average Daily Treatment Revenue (ADTR) increased 26.2% to 54.5 TUSD.

• 484 scalp cooling systems installed globally in the first nine months, with an order book of 121 systems.

• Major regulatory and reimbursement milestones achieved in the US, including new CPT® Category I codes and improved CMS payment rates.

Financial highlights

• EBITDA for Q3 2024 was 11.8 MSEK (18.1% margin), down from 13.0 MSEK (21.2%) in Q3 2023.

• Operating profit was 8.5 MSEK, up from 8.1 MSEK in Q3 2023.

• Net cash flow positive at 2.9 MSEK, with cash on hand rising to 36.3 MSEK from 24.3 MSEK a year earlier.

• Equity/assets ratio improved to 72.5% from 68.4% in Q3 2023.

• Earnings per share for the quarter were 0.26 SEK, compared to 0.39 SEK in Q3 2023.

Outlook and guidance

• Focus remains on expanding recurring revenue, insurance-based billing in the US, and global market penetration.

• New CPT® Category I codes effective January 2026 expected to drive further US adoption and reimbursement.

• Continued investment in R&D, especially for CIPN prevention and new product development.

• Anticipated strengthening of direct and distributor market order book in coming quarters.