Profoto (PRFO) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 declined by 13% to SEK 171 million, with organic growth at -6.7% and a negative currency effect, reflecting ongoing market uncertainty and cautious customer behavior.

• EBIT dropped to SEK 18 million from SEK 36 million, with margin falling to 10.5–11%, mainly due to lower sales, product mix, and increased costs for new product launches.

• Five new products were launched, including B20 and B30 flash products and three LED products, expanding the addressable market.

• Cost reduction initiatives, including a 15% workforce reduction, are underway and expected to show full effect in H2/Q4 2025.

• Profit for the period was SEK 14 million, compared to SEK 28 million in Q2 2024.

Financial highlights

• Net sales for Q2 2025 were SEK 171 million, down 13% year-over-year, with organic growth at -6.7%.

• EBIT for Q2 2025 was SEK 18 million, a 47–50% decrease from Q2 2024, with an EBIT margin of 10.5–11%.

• H1 2025 net sales totaled SEK 335 million, down 8.5% year-over-year; EBIT for H1 was SEK 35 million (down from SEK 70 million).

• Cash flow from operating activities in H1 2025 was SEK 78 million, up from SEK 46 million in H1 2024.

• Return on operating capital (LTM) was 23.8%, down from 34.0% a year earlier.

Outlook and guidance

• Full effect of cost reductions is expected in H2/Q4 2025, with a target to reduce the total cost base by 20% and R&D spend targeted at 10% of sales.

• Market sentiment remains cautious, with no signs of improvement and flat development expected to persist into Q3.

• LED product launches are expected to start deliveries in Q4 2025, with limited financial impact in 2025.

• Seasonal weakness anticipated in Q3 due to vacation periods.

• Long-term, the addressable market is expected to expand significantly with the LED portfolio.