Smartcraft (SMCRT) Q4 2025 earnings summary

Executive summary

• Achieved 8.4% year-over-year ARR growth in Q4 2025, reaching NOK 522.3 million, with 6.5% organic growth, and served 14,100 customers and 189,000+ users across Norway, Sweden, Finland, and the UK.

• Recurring revenue share reached 95.9% in Q4, reflecting a continued shift from non-recurring to recurring revenue streams.

• Launched and expanded AI-driven products, notably SmartCraft Spark and Flow, enhancing quoting efficiency and workflow optimization.

• Initiated international expansion, with Locka securing its first UK customer and further growth in Finland and outside Scandinavia.

• Announced relisting from Oslo to Nasdaq Stockholm in Q1 2026 to improve share liquidity and align with revenue concentration in Sweden.

Financial highlights

• Q4 2025 revenue was NOK 144 million, up 5.4% year-over-year, with ARR at NOK 522.3 million.

• Adjusted EBITDA for Q4 was NOK 48.7 million, margin 33.9%, and adjusted EBITDA minus CapEx margin increased by 2.5 percentage points YoY to 26.7%.

• R&D CapEx was 7.2% of revenue in Q4 and 8% for the full year, consistent with prior guidance.

• Operational cash flow declined year-over-year, mainly due to extraordinary tax prepayments and higher accounts payable, totaling NOK 16 million in impact.

• Solid equity position at 74%, net cash positive, and cash and cash equivalents at year-end were NOK 144.7 million.

Outlook and guidance

• Maintains a midterm organic growth target of 15–20%, with margin expansion expected due to business scalability.

• Plans to drive growth through cross-selling, new product features, and selective M&A, while keeping margins around 30%.

• Price increases implemented for key products, with ongoing evaluation of value-based pricing strategies.

• Short-term impact anticipated from recently acquired companies.

• Market recovery is expected to be gradual, with renovation and service activity stable and new-build markets showing signs of bottoming out.