Stillfront Group (SF) Q4 2025 earnings summary

Executive summary

• Achieved margin expansion with adjusted EBITA/EBITDAC margin rising to 27% from 25% year-over-year, despite a 9.4% organic revenue decline in Q4 2025.

• Strategic focus on cost savings, disciplined user acquisition, and DTC channel rollout drove profitability.

• Significant non-cash goodwill and intangible asset impairment of just under SEK 2.3 billion, mainly in Europe and North America.

• Divested non-core narrative portfolio in Europe and restructured segment reporting to focus on key franchises.

• Free cash flow for Q4 was SEK 290 million, supporting debt repayment and share buybacks.

Financial highlights

• Q4 net revenue was SEK 1,356 million, down 9.4% organically year-over-year.

• Adjusted EBITA/EBITDAC for the quarter was SEK 368 million, with a margin of 27%.

• Gross margin improved to 83%, up three percentage points year-over-year, driven by higher DTC share.

• Free cash flow for Q4 was SEK 290 million; LTM free cash flow reached SEK 922 million.

• User acquisition spend decreased to SEK 356 million (26% of revenue), down from SEK 504 million (30%) last year.

Outlook and guidance

• Aiming to return to organic growth over time through incremental business improvements and disciplined investments.

• 2026 expected to be an investment year, with disciplined UA deployment to support growth in key franchises.

• EBITDA margin may fluctuate quarter to quarter, but focus remains on long-term profitability.

• Healthy cash flows expected to be maintained, with no debt maturities in 2026.

• No dividend proposed for 2025.