Smart Eye (SEYE) Q2 2025 earnings summary

Executive summary

• Net sales reached 92.1 MSEK in Q2 2025, up 2.8% year-over-year, with organic growth of 12%.

• EBITDA turned positive at 1.0 MSEK, a significant improvement from -23.2 MSEK last year, driven by cost savings and strong license revenue growth.

• OPEX reduced by 21% following a completed savings program, lowering costs by 22 MSEK.

• Automotive segment drove growth with license revenue more than doubling, while Behavioral Research saw a decline but outperformed industry peers.

• Cash and available credit at quarter-end totaled 93.8 MSEK, supporting ongoing operations.

Financial highlights

• Gross profit increased to 82.8 MSEK from 81.0 MSEK year-over-year; gross margin remained high at 90%.

• Rolling 12-month net sales rose 5% to 361.5 MSEK.

• Free cash flow impacted by net investments of -31.9 MSEK and net operating cash flow of -5.7 MSEK.

• Operating loss for Q2 was -40.6 MSEK; earnings per share after tax was -1.00 SEK.

• Equity ratio at 77.75% as of June 30, 2025.

Outlook and guidance

• 70-80 automotive design wins expected to reach production in 2025.

• Market share in DMS expected to reach at least 40% by 2027, with EU regulatory changes driving 100% DMS take rate.

• Expectation of continued strong quarters ahead, driven by ramp-up in license volumes and no further cost-saving measures planned.

• Q3 anticipated to be even stronger due to ongoing acceleration in license revenues and low operational expenses.