Safeture (SFTR) Q1 2025 earnings summary

Executive summary

• Operating revenue grew 7% year-over-year to 14,565 KSEK in Q1 2025, with recurring revenue representing 99% of the total.

• EBIT turned positive at 131 KSEK, up from -419 KSEK in Q1 2024, and net result after financial items was 261 KSEK.

• Cash flow was strong at +4,812 KSEK, with cash holdings of 28,598 KSEK, supporting a path to sustainable profitability.

• Annual Recurring Revenue (ARR) increased 5% year-over-year to 57,011 KSEK, despite currency headwinds.

• Quarterly churn remained low at 2.3%, and Net Revenue Retention (NRR) was 100%.

Financial highlights

• Operating revenue: 14,565 KSEK (+7% YoY); recurring revenue: 14,423 KSEK (+14% YoY).

• EBIT: 131 KSEK (+550 KSEK YoY); operating margin improved from -3% to +1%.

• Cash flow from operations: +7,381 KSEK; total cash at period end: 28,598 KSEK.

• Gross margin stable at 79%.

• Earnings per share: 0.01 SEK (before and after dilution), up from -0.01 SEK.

Outlook and guidance

• Management expects sustainable profitability once ARR reaches 65 MSEK.

• Current cash position is deemed sufficient to reach profitability.

• Growth in Q1 was tempered by macroeconomic turbulence, longer sales cycles, and smaller deal sizes.

• Strategic investments in marketing and product development are ongoing to support future growth.