Safeture (SFTR) Q2 2025 earnings summary

Executive summary

• Q2 2025 was challenging with 1% revenue growth year-over-year, pressured by FX headwinds, missed profitability targets, but increased partner activity and a growing sales pipeline were noted.

• The company reorganized its sales and client development teams, expanded its partner network, and launched new product initiatives to drive growth and reduce churn.

• Product innovation continued with new features and AI-powered offerings to support upsell and retention.

Financial highlights

• Operating revenue for Q2 2025 was 13,975 KSEK, up 1% year-over-year; at constant FX, growth was 3.5%.

• EBIT for Q2 was -376 KSEK, down from -152 KSEK in Q2 2024; operating margin declined to -3% from -1%.

• Cash flow for Q2 was -2,823 KSEK, impacted by timing of a major customer invoice; cash at period end was 25,775 KSEK.

• Annual Recurring Revenue (ARR) at quarter end was 55,754 KSEK, a 2% decline year-over-year, mainly due to FX headwinds.

• Earnings per share before and after dilution were -0.01 SEK for Q2 2025.

Outlook and guidance

• Management expects continued fluctuations around the profit line until sustainable profitability is reached at an ARR of 65 MSEK.

• The company remains focused on sustainable profitability, with a mid-term target of 15% annual revenue growth and gross margins above 80%.

• Growing sales pipeline and increased average order value signal potential for improved performance in coming quarters.

• Current cash level deemed sufficient to reach sustainable profitability.