Storytel Group (STORY) Q4 2025 earnings summary

Executive summary

• Achieved record profitability and strong cash flow in 2025, driven by robust performances in both Streaming and Publishing, and entering 2026 with strong momentum.

• Streaming subscribers grew 9% year-over-year to 2.67 million, with significant gains in both Nordic and non-Nordic markets and churn rates at all-time lows.

• Launched innovative features, including AI-powered personalization, synced listening, StoryArt, and a pay-per-book model with over 35,000 English titles.

• Publishing segment delivered 18% external revenue growth in constant currency and expanding profitability, supported by successful new releases and the Bokfabriken acquisition.

• Initiated process to transfer listing to Nasdaq Stockholm Main Market, expected to complete in 2026.

Financial highlights

• Q4 sales grew 12% in constant currencies; full year group revenue reached SEK 4,023M, up 9% CER.

• Adjusted EBITDA margin improved to 18.8% for the year and reached 20% in Q4; EBITDA up 26% to SEK 757M.

• Net profit for 2025 was SEK 504M, including a SEK 195M deferred tax asset recognition; Q4 net profit was SEK 300M.

• Cash flow from operations before working capital changes was SEK 217M in Q4 and SEK 647M for the year, both up double digits year-over-year.

• Gross margin reached a record 47.0% in Q4; operating margin at 10.5%.

Outlook and guidance

• On track to meet midterm 2028 targets, including revenue CAGR >10% CER, EBITDA margin >20%, and net debt/EBITDA <1.5x.

• 2026 EBITDA target set at a minimum of SEK 870M.

• Dividend proposed at SEK 1.50 per share for 2025, with plans for steady increases.

• Guidance for 2026 is based on organic growth, with flexibility to prioritize top-line growth or margin protection.

• Expect continued growth in digital formats and subscriber base, aiming for over 3 million subscribers by 2027.