Upsales (UPSALE) Q2 2025 earnings summary

Executive summary

• Achieved fifth consecutive quarter of ARR growth, reaching SEK 146.7M, up 6.6% year-over-year, with strong new customer acquisition and reduced churn.

• Transitioned from CRM/marketing platform to AI revenue platform, investing heavily in AI agents and automation for sales, marketing, finance, and service.

• Introduced new all-inclusive pricing model, improving clarity and supporting new sales growth.

• Strategic focus on scaling ARR, cost discipline, and leveraging AI for customer expansion and productivity.

• Identified 842 potential business opportunities (+22%) and estimated upsell potential of 128 customers (+17.9%).

Financial highlights

• Net sales for Q2 were SEK 37.4M, up 5.8% year-over-year, with 95.7% from recurring subscription revenue.

• EBITDA was SEK 8.5M (22.8% margin), up from SEK 6.7M (19% margin) year-over-year.

• Net income was SEK 4.8M, compared to SEK 3.5M in the prior year.

• Operating cash flow for Q2 was SEK 6.6M, up from SEK 4.0M last year; net cash at quarter-end was SEK 24.1M, down from SEK 33.5M.

• Dividend of SEK 1.5 per share paid, totaling SEK 25.3M.

Outlook and guidance

• Management prioritizes returning to rapid ARR growth, targeting previous levels of SEK 8–9M quarterly increases.

• Focus remains on accelerating ARR growth, maintaining cost discipline, and expanding AI-native product offerings.

• Positioned for growth within the existing customer base and broader market, leveraging new AI tools.

• Financially strong, debt-free, and ready to capitalize on AI-driven opportunities despite market uncertainty.

• No material impact from negative market conditions; churn continues to decline.