Upsales (UPSALE) Q4 2025 earnings summary

Executive summary

• Achieved the largest quarterly ARR increase in three years, driven by strong demand for AI-related services and a strategic pivot to an AI revenue platform.

• Profitability remained high with zero debt, supported by investments in senior expertise and AI-driven services.

• European market sentiment is shifting away from U.S. software providers, creating new opportunities.

• Churn rates declined, supporting stable recurring revenue and higher retention.

• Strategic reorganization of the product team, phasing out 14 positions to align with AI-driven development.

Financial highlights

• ARR reached MSEK 153.0 at year-end, up MSEK 11.1 year-on-year and MSEK 5.3 in Q4.

• Q4 net sales were MSEK 40.4, up 10.8% year-on-year, with annual net sales at MSEK 152.0.

• EBITDA for Q4 was MSEK 10.4 (25.7% margin); full-year EBITDA was MSEK 38.6 (25.4% margin).

• Net income for Q4 was MSEK 5.8; full-year net income was MSEK 22.5.

• Net cash at year-end was MSEK 37.0, with a proposed dividend of SEK 0.75 per share.

Outlook and guidance

• Continued investment in product development and AI capabilities, with a focus on hiring broad-skilled talent.

• Revenue growth is expected to accelerate in 2026, supported by low churn and strong commercial activity.

• Largest growth opportunities are within the existing customer base, driven by demand for AI agents.

• Ongoing innovation projects, such as the Aira mobile app, are in early stages and not yet generating revenue.

• Well-positioned to capitalize on AI opportunities and European market shifts.