Readly International (READ) Q1 2025 earnings summary

Executive summary

• Revenue grew 5.0% year-over-year to SEK 182.6 million, with adjusted growth of 15.8% excluding FX and divestments.

• Adjusted EBITDA margin improved to 11.7% from 5.1% year-over-year, with six consecutive quarters of positive adjusted operating results.

• Free cash flow increased to SEK 12.9 million from SEK 7.1 million year-over-year.

Financial highlights

• Gross profit rose 8.4% to SEK 73.8 million, gross margin up to 40.4% from 39.1% year-over-year.

• Adjusted EBITA margin increased to 8.1%, and operating margin improved to 7.3% from -0.2% year-over-year.

• Earnings per share were SEK 0.2, up from SEK 0.1 year-over-year.

• Cash and cash equivalents at period end were SEK 114.6 million, up from SEK 103.4 million year-over-year.

Segment performance

• Full-paying subscribers (FPS) decreased 7.0% year-over-year to 426,525; adjusted for divestments, FPS declined 1.3%.

• ARPU increased to SEK 145 from SEK 137 year-over-year.