Profoto (PRFO) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales fell 19% year-over-year to SEK 163m, with a 9% negative currency effect and weak demand, especially in the Americas.

• EBIT for Q4 was SEK 16m (margin 10%), down from 26% the previous year, impacted by SEK 7m in legal costs.

• Full-year 2025 net sales declined 16% to SEK 617m, with adjusted EBIT margin at 6.6%.

• Cost-saving measures reduced the cost base by up to 29%, improving cash flow and EBIT.

• Strategic focus shifted to LED products, with launches and pre-sales targeting cinema and creator markets.

Financial highlights

• Q4 net sales: SEK 163m (down 19% year-over-year); full-year: SEK 617m (down 16%).

• Q4 EBIT margin: 10%; full-year adjusted EBIT margin: 6.6%.

• Legal costs of SEK 7m in Q4 impacted EBIT; cost base reduced by close to 30%.

• Net debt reduced by SEK 54m to SEK 181m due to strong cash flow and working capital management.

• Operating cash flow in Q4 was SEK 37m–38m; cash conversion rate reached 238%.

Outlook and guidance

• Updated long-term targets: organic growth above 5% per year and 20% EBIT margin.

• No dividend proposed for 2025; focus remains on net debt reduction and financial flexibility.

• Management expects progress toward new targets in 2026, driven by new LED launches and increased activities.