Qlosr Group (QLOSR) Q2 2024 earnings summary

Executive summary

• Qlosr Group reported a 20.6% decrease in Q2 revenues to 131.6 MSEK, mainly due to a shift from direct to recurring revenues and delayed volume business orders to Q3.

• Subscription revenues grew 9.0% year-over-year to 72.0 MSEK, with 100% organic growth.

• The company signed a letter of intent to divest several subsidiaries, aiming to reduce debt and focus on the hardware segment.

• If the divestment is completed, annual revenues for the remaining business are expected to be around 300 MSEK.

Financial highlights

• Q2 adjusted EBITDA was 5.7 MSEK (4.3% margin), down from 7.8 MSEK (4.7%) last year.

• Q2 adjusted net result (excl. goodwill amortization and one-offs) was -4.0 MSEK, compared to 1.2 MSEK last year.

• Cash flow from operations after working capital in Q2 was -28.5 MSEK, impacted by seasonality.

• Cash and bank balances decreased by 37.2 MSEK during Q2, ending at 23.8 MSEK.

• For H1 2024, revenues were 311.1 MSEK (+0.3%), adjusted EBITDA 8.2 MSEK (2.6% margin), and adjusted net result -11.0 MSEK.

Outlook and guidance

• The planned divestment is expected to significantly reduce leverage and enable a strategic focus on the hardware business, which grew 25% last year.

• New financial targets and guidance will be communicated after the transaction is finalized.