Thinc (THINC) Q1 2025 earnings summary

Executive summary

• Revenue increased by 5% year-over-year to 79,976 tkr in Q1 2025, with EBITDA up 15% to 2,381 tkr and margin rising to 3.0% from 2.7% last year.

• Strong recovery in several subsidiaries, notably BANG Agency, KKM, Tundran, and Safir, following targeted improvement measures.

• New public sector contracts won, including Södertörns Högskola (5 mkr), Arbetsförmedlingen (4.4 mkr), and post-period Valmyndigheten (22 mkr).

• Q1 performance was in line with expectations, with the company navigating a challenging macro environment and maintaining profitability.

Financial highlights

• Gross profit (byråintäkt) rose 3% to 19,741 tkr, but gross margin declined to 24.7% from 25.1% due to price pressure in Creative and Event segments.

• Net income after tax was 607 tkr (542 tkr last year); EPS after tax was 0.04 kr (0.03 kr).

• Cash flow from operations improved to 738 tkr from -4,680 tkr year-over-year; period cash flow was 175 tkr.

• Equity at period end was 49,180 tkr (54,451 tkr), with liquidity at 10,344 tkr (11,147 tkr).

• Investments totaled 495 tkr, mainly for new Stockholm office space.

Outlook and guidance

• The company expects Q2 to be stronger than Q1, with Q3 seasonally weak and Q4 strong, following industry patterns.

• Ongoing margin improvement actions are expected to continue yielding results, with a focus on profitability over high growth.

• Strategic focus on public procurement and digital/AI-based solutions to drive future growth.