Smartcraft (SMCRT) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 ARR of NOK 505 million, up 9% year-over-year, with organic ARR growth at 7% and strong profitability.

• Launched new products (SmartCraft Spark and BIM features) with strong early adoption and positive feedback.

• Added approximately 400 new customers in H1 2025, with an 8% year-over-year increase in new contracts and a 22% rise in sales leads.

• Interim CEO Hanna Konyi appointed July 1, 2025, focusing on product investment, unified platform, and disciplined M&A.

• Focused on accelerating product development and sales to capture market opportunities, especially in the U.K.

Financial highlights

• Q2 2025 revenue: NOK 141 million, up 5.7% year-over-year; recurring revenue: NOK 134.2 million, up 12.6% year-over-year.

• Adjusted EBITDA margin: 38.2%; adjusted EBITDA-CAPEX margin: 29.4%, highest since Q1 2024.

• Operating cash flow: NOK 29.7 million, up 20% year-over-year; cash and equivalents: NOK 148.2 million at Q2 2025 end.

• Over 95% of revenue is recurring; recurring revenue share reached 95.5% in Q2 2025.

• Churn rate increased to 10%, mainly due to sector bankruptcies and market conditions.

Outlook and guidance

• Medium-term targets: 15-20% organic growth and continued adjusted EBITDA margin expansion.

• Expecting reduced churn and gradual improvements in growth and margins as the construction market recovers.

• Continued investment in innovation and product development to drive future ARR growth.

• Board evaluating potential relisting to Nasdaq Stockholm; international CEO search underway.

• Churn expected to normalize to 5-7% as market improves.