Realfiction (REALFI) Q1 2025 earnings summary

Executive summary

• Achieved three major milestones in Q1 2025, including a license agreement with Goworld, launch of a key DPT component, and unveiling the first MicroLED-based 3D display with PlayNitride.

• Focused on commercializing Directional Pixel Technology (DPT) for automotive, LED wall, and MicroLED display segments.

• Announced a SEK 50 million rights issue and SEK 15 million loan refinancing to fund DPT commercialization and reach operational cash-flow positivity.

Financial highlights

• Q1 2025 revenue: TSEK 874, down from TSEK 1,703 in Q1 2024 and TSEK 2,949 in Q4 2023.

• Gross profit: TSEK 491 (Q1 2024: TSEK 1,072); gross margin: 56.2% (Q1 2024: 62.9%).

• Result after financial items: TSEK -8,409 (Q1 2024: TSEK -8,123); EPS: SEK -0.42 (Q1 2024: -0.41).

• Cash flow from operating activities: TSEK -6,893 (Q1 2024: TSEK -5,381); liquidity at period end: TSEK 11,947.

• Equity: TSEK 39,953 (Q1 2024: TSEK 61,548); solvency ratio: 53.2% (Q1 2024: 59.9%).

Outlook and guidance

• Rights issue and loan refinancing expected to provide funding for DPT commercialization and operational cash-flow positivity.

• Anticipates NRE and up-front payments from customer projects in 2025–2026, with per-unit license fees from late 2026 or early 2027.

• Expects continued decline in legacy mixed reality display revenue as focus shifts to DPT.