SmartCraft (SMCRT) Q3 2025 earnings summary

Executive summary

• Annual recurring revenue (ARR) reached NOK 505 million, up 6.4% year-over-year, with recurring revenue at 97% of total and churn declining to 9.6%.

• Adjusted EBITDA minus CapEx margin increased to 28.2%, up 2.9 percentage points year-over-year, with robust operating cash flow of NOK 36 million.

• Transitioned to a business area-driven structure to enhance focus, scalability, and international growth.

• Launched SmartCraft Flow for HVAC/plumbing and SmartCraft Spark for electricians, with strong early adoption.

• Maintained a strong financial position with net cash, negative net working capital, and continued investment in innovation.

Financial highlights

• ARR grew 6.4% year-over-year to NOK 505 million, with recurring revenue share at 97% and 6.9% organic growth.

• Adjusted EBITDA minus CapEx margin rose to 28.2%, up 2.9 percentage points year-over-year.

• Operating cash flow increased to NOK 36 million, up 4.8% year-over-year.

• Churn rate improved to 9.6%, down 0.4 percentage points quarter-over-quarter.

• Recurring revenue grew 7.6% year-over-year to NOK 133.5 million.

Outlook and guidance

• Medium-term targets remain at 15–20% organic revenue growth and margin expansion, with margin expected to increase as scale improves.

• Gradual market improvement expected in Sweden, UK, and Finland; Norway remains cautious but may benefit from interest rate cuts.

• Continued investment in innovation, sales, and targeted M&A to capitalize on market recovery.