Smart Eye (SEYE) Q1 2025 earnings summary

Executive summary

• Achieved 7% organic growth in Q1 2025, with net sales of 90.1 MSEK, up 5% year-over-year, driven by 27% growth in Automotive Solutions.

• EBITDA improved by 5 MSEK (+22%) to -17.9 MSEK from -23.0 MSEK, with adjusted EBITDA in line with last year after excluding one-time items.

• Automotive segment drove growth, with 85 car models in production and license revenue more than doubling year-over-year.

• Savings program completed in Q2, expected to yield yearly savings of 40 MSEK and a 9% reduction in FTEs.

• Major new design wins in Q1 and post-period, including contracts with Japanese, Korean, and European OEMs.

Financial highlights

• Net sales reached 90.1 MSEK, up from 86.1 MSEK in Q1 2024; rolling 12-month net sales grew 11% year-over-year.

• Gross profit increased to 79.9 MSEK, with a gross margin of 88.8% (down from 89.8%).

• EBITDA was -17.9 MSEK; adjusted EBITDA (excluding one-offs) was -14.4 MSEK.

• Operating loss at -61.4 MSEK; earnings before tax at -65.3 MSEK; net loss after tax at -55.1 MSEK.

• Cash flow for Q1 was -13 MSEK, with total available cash at 130.9 MSEK after financing activities.

Outlook and guidance

• Q2 EBITDA expected to be near or above break-even; Q3 and Q4 projected to have solid positive margins due to increased license revenue and reduced OPEX.

• Full effect of cost savings program to be realized from Q2 2025, with further OPEX reductions in Q3 due to seasonal effects.

• No further cost-saving programs anticipated; sufficient liquidity for planned operations.

• Strong positive cash flow anticipated in 2026.