Smartoptics Group (SMOP) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 revenue of $23.2 million, up 37.7% year-over-year, and full-year revenue of $75.3 million, up 35.6%, with strong growth across all product areas, especially Optical Devices.

• Business momentum was driven by large account strategy, AI-related data center interconnect demand, and robust performance in the Americas and Europe, while APAC remained project-dependent.

• EBITDA for Q4 reached $3.6 million (15.3% margin), and full-year EBITDA was $9.7 million (12.9% margin), with adjusted margin of 13.9% excluding uplisting costs.

• Operating cash flow in Q4 was $6.8 million, supported by strong business and inventory reductions.

• Uplisting to Euronext Oslo main board completed; board proposes NOK 0.60 per share dividend, pending AGM approval.

Financial highlights

• Q4 2025 revenue rose 37.7% year-over-year to $23.2 million, with full-year revenue at $75.3 million, up 35.6%.

• Q4 gross margin was 46.1% (down from 49.0% last year) due to inventory-related one-off items; full-year margin stable at 47.8%.

• Q4 EBITDA margin improved to 15.3% (from 14.4%); full-year EBITDA margin at 12.9% (up from 10.1%).

• Q4 net income was $2.8 million, with basic EPS of $0.029; full-year net income was $4.7 million, EPS $0.048.

• Cash and cash equivalents at year-end: $7.3 million; equity ratio at 54%.

Outlook and guidance

• Targets 2–3x market share growth by 2030 and 13–16% EBIT margin, focusing on AI-driven capacity expansion and large account penetration.

• Expects market growth of 5–6% annually through 2030, with updated projections in H1 2026.

• Gross margin expected to remain in the 47–50% range for the foreseeable future.

• Focus remains on core markets and organic growth; M&A activity not prioritized currently.

• Plans to leverage software automation and AI for expansion in large accounts and emerging markets.