Yubico (YUBICO) Q1 2025 earnings summary

Executive summary

• Net sales grew 24.9% year-over-year to SEK 623.1 million, with strong subscription and ARR growth despite macroeconomic headwinds and extended customer decision cycles.

• EBIT reached SEK 92.6 million, with a margin of 14.9% (adjusted margin 19%), impacted by one-off costs and increased personnel/event expenses.

• Bookings declined 9.5% year-over-year, reflecting delayed large deals and customer caution.

• Underlying demand for phishing-resistant authentication remains robust, especially in telecom, finance, government, and public sector.

• Operational agility and local manufacturing support resilience amid global trade, tariffs, and economic challenges.

Financial highlights

• Subscription sales rose 40.7% to SEK 79.6 million, now 12.8% of net sales.

• ARR increased 24.7% to SEK 345.7 million, with SEK 21.6 million added in Q1.

• Gross margin at 78.4%, down from 80.7% last year, mainly due to FX effects.

• Operating cash flow was SEK 44.1 million, with cash and cash equivalents at SEK 852.1 million at period end.

• Earnings per share after dilution fell to SEK 0.58 from SEK 0.84 year-over-year.

Outlook and guidance

• Market uncertainty and cautious customer behavior expected to persist at least through Q2.

• Financial targets: 25% average annual net sales growth and 20% EBIT margin over the next five years.

• No dividend planned in the medium term; focus remains on reinvestment and growth.

• No specific full-year guidance provided; too early to predict if growth will meet targets.

• Long-term growth drivers remain intact, with robust interest from critical infrastructure sectors.