Tempest Security (TSEC) Q2 2025 earnings summary

Executive summary

• Revenue grew by 7.8% to 145.0 MSEK in Q2 2025 and by 10.3% to 276.6 MSEK for H1 2025, driven by new contracts and strong core business performance.

• Adjusted EBITDA for Q2 was 4.0 MSEK (2.8% margin), up from 3.8 MSEK last year, despite significant restructuring costs.

• Strategic cost-saving measures and organizational streamlining are underway, with annual overhead reductions of 10 MSEK expected.

• Leadership transition: Helena Skarle stepped down as CEO after the period, with Andrew Spry resuming the role.

Financial highlights

• Q2 2025 EBITDA was -5.5 MSEK, impacted by -9.5 MSEK in non-recurring restructuring costs; adjusted EBITDA was 4.0 MSEK.

• Q2 operating result was -8.3 MSEK; adjusted operating result was 1.2 MSEK.

• Net result for Q2 was -9.0 MSEK; for H1, -11.7 MSEK.

• Cash flow from operations before working capital changes was -6.9 MSEK in Q2 and -5.4 MSEK for H1.

• Average number of employees increased to 617 in Q2 2025.

Outlook and guidance

• Strategic review of Risk Solutions Sweden ongoing, with completion targeted for end of 2025.

• Management expects continued growth, improved margins, and further efficiency gains in H2 2025.

• Full impact of cost savings to be realized after December 2025.