Paxman (PAX) Q4 2025 earnings summary

Executive summary

• Q4 net sales reached SEK 84.4 million, up from SEK 66 million year-over-year, mainly due to the Dignitana acquisition, with organic growth at 5% and 18.6 MSEK from Dignitana.

• Full-year sales were SEK 330 million versus SEK 253 million last year, with about 10% overall growth and Dignitana contributing 46.6 MSEK since June 1, 2025.

• Integration of Dignitana, the largest competitor, completed, expanding the US installed base by 38%.

• U.S. insurance-based billing sales were strong, reaching $3.95 million in Q4, up from $3.2 million sequentially.

• Significant investments in R&D and commercialisation of a new device for chemotherapy-induced peripheral neuropathy (CIPN).

Financial highlights

• Gross margins remained strong despite increased operating costs from merger and restructuring.

• Q4 EBITDA was 5.8 MSEK (down from 11.5 MSEK in Q4 2024), impacted by acquisition and CIPN commercialisation costs.

• Full-year EBITDA totaled 28.5 MSEK (49.7 MSEK in 2024), reflecting one-time acquisition and integration costs.

• Adjusted for CIPN and restructuring costs (SEK 9.2 million), EBITDA margin was about 13%, down from historical 20%.

• Cash on hand at year-end was 120.8 MSEK, boosted by a 123.5 MSEK share issue.

Outlook and guidance

• 2026 expected to be pivotal, focusing on insurance-based billing model expansion, CIPN device commercialisation, and further revenue growth in global markets.

• Positive sentiment for 2026, with expectations of increased U.S. utilization and insurance coverage due to CPT I codes and legislative momentum.

• Regulatory clearance for the CIPN device anticipated in April 2026, with US and UK launches planned.

• Modest revenues from the new neuropathy (CIPN) product expected in Q3/Q4 2026, with main launch in 2027.

• Continued investment in CIPN development will pressure margins until commercialization.