Storytel Group (STORY) Q2 2025 earnings summary

Executive summary

• Achieved robust financial performance in Q2 2025, with strong subscriber growth, EBITDA improvement, and solid cash generation, enabling strategic investments for future growth.

• Average paying subscribers grew over 11% year-over-year to nearly 2.55 million, with churn at an all-time low and high engagement across markets.

• Strategic expansion outside the Nordics and into new customer segments contributed to growth but led to a decrease in ARPU, mainly due to currency effects.

• Integration of Publishing and Streaming units and the acquisition of Bokfabriken supported content success and profitability.

• New Group Executive Management Team and recruitment of Chief People Officer to support 2028 strategy.

Financial highlights

• Group net sales increased 4% year-over-year to 958 MSEK (8% in constant currency); gross profit up 6% to 434 MSEK, margin 45.3%.

• Adjusted EBITDA up 28% to 163 MSEK, margin at 17% (from 13.8% last year); net profit rose to 47 MSEK from 32 MSEK.

• Operating cash flow before working capital changes was 140 MSEK, up from 106 MSEK last year; cash and cash equivalents at period end: 485 MSEK (315 MSEK prior year).

• Equity-to-asset ratio at 46%; net interest-bearing debt reduced to 115 MSEK, NIBD/adjusted EBITDA at 0.17.

• Earnings per share before dilution at 0.55 SEK (up 44%).

Outlook and guidance

• On track to deliver full-year 2025 guidance, with continued investments in content, data, and AI for personalized experiences.

• 2025 guidance: revenue growth of 7–10% (CER), adjusted EBITDA margin of 17.5–19.0%, subscriber base growth of 10%, operational capex below 5% of revenue.

• New financial targets for 2028: revenue CAGR above 10% (CER), EBITDA margin above 20%, net debt/EBITDA below 1.5x.

• Strategic focus on strengthening the Nordics, accelerating growth in non-Nordics, and expanding into adjacent markets.

• Incremental investments planned for expansion into 6–8 new markets, with goals set for 2028.