Smartoptics Group (SMOP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached USD 14.4 million, up 13.5% year-over-year, marking a record Q1 despite tariff-related headwinds in Optical Devices.

• Strong growth in Americas (+21%) and APAC (+74%), with EMEA down 3%, driven by Solutions, Software & Services, and new product launches.

• Solutions grew 26%, Software & Services 18%, while Devices declined 10% due to tariffs.

• Gross margin declined slightly to 47.3% from 48.6% YoY, while EBITDA margin remained stable at 8.4%.

• Net profit for Q1 2025 was USD 0.1 million, down from USD 1.1 million in Q1 2024, mainly due to negative net financial items.

Financial highlights

• Revenue: USD 14.4 million (+13.5% YoY); Americas +21.3%, APAC +74.3%, EMEA -3.3%.

• Gross profit: USD 6.8 million (Q1 2024: USD 6.1 million); gross margin 47.3% (Q1 2024: 48.6%).

• EBITDA: USD 1.2 million (Q1 2024: USD 1.1 million); EBITDA margin 8.4%.

• Operating profit (EBIT): USD 0.6 million (Q1 2024: USD 0.5 million); operating margin 4.1%.

• Cash and cash equivalents stood at USD 9.9 million at quarter-end.

Outlook and guidance

• Long-term ambition to reach USD 100 million in revenue by 2025/26 is reiterated, with gross margin target ~45% and EBITDA margin 17-20%.

• Strategy review underway, focusing on AI, network automation, and expanding device strategy.

• Board proposes a dividend of NOK 0.60 per share, pending AGM approval.

• OpEx growth is being managed cautiously pending further clarity on tariffs and market conditions.