TH1NG (TH1NG) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked by ongoing restructuring, expected to complete by mid-2025, with focus shifting to core IoT solutions.

• Revenue declined sharply due to divestment of broadband business and reduced sales force.

• Strategic review of IoT platforms initiated, including potential divestment of IoT Open.

• Financial position remains strained; bridge loans secured to address short-term liquidity.

Financial highlights

• Net revenue for Q1 2025 was SEK 2.0m, down from SEK 7.0m year-over-year.

• Gross margin fell to 35.5% from 52.5% year-over-year.

• EBIT for Q1 2025 was SEK -6.7m, compared to SEK -5.1m in Q1 2024.

• Net loss for Q1 2025 was SEK -7.4m, versus SEK -5.3m in Q1 2024.

• Total cash flow for the period was SEK -0.8m, compared to SEK 0.5m in Q1 2024.

Outlook and guidance

• Restructuring to be completed by mid-2025, resulting in a streamlined IoT-focused business.

• Sales expected to improve in H2 2025 following recruitment of new sales leadership.

• Ongoing efforts to secure both short- and long-term financing.