Realfiction (REALFI) Q2 2025 earnings summary

Executive summary

• Revenue declined 55% year-over-year in Q2-2025 to TSEK 1,132, reflecting a strategic shift toward DPT commercialization.

• Gross profit margin improved to 65.4% in Q2-2025 from 60.2% in Q2-2024 due to a different sales mix and lower sales prices.

• Operating loss narrowed to TSEK -6,589 in Q2-2025 from TSEK -7,436 in Q2-2024, driven by reduced external and personnel costs.

• Positive cash flow contribution continued from legacy mixed reality displays, despite expected revenue decline.

• Major milestone achieved with the unveiling of the world's first MicroLED-based 3D display powered by DPT.

Financial highlights

• Q2-2025 revenue: TSEK 1,132 (Q2-2024: TSEK 2,508); H1-2025 revenue: TSEK 2,006 (H1-2024: TSEK 4,211).

• Q2-2025 gross profit: TSEK 740 (Q2-2024: TSEK 1,511); gross margin: 65.4% (Q2-2024: 60.2%).

• Q2-2025 result after financial items: TSEK -7,662 (Q2-2024: TSEK -8,508); EPS: SEK -0.38 (Q2-2024: -0.43).

• Cash flow from operating activities improved to TSEK -4,208 in Q2-2025 from TSEK -6,122 in Q2-2024.

• Equity at 30 June 2025: TSEK 33,822 (Q2-2024: TSEK 52,309).

Outlook and guidance

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

• Rights issue and loan refinancing expected to provide funding needed to commercialize DPT and reach operational cash-flow positivity.

• Ongoing commercial discussions in automotive displays, LED walls, and with major display industry players.