Yubico (YUBICO) Q1 2025 earnings summary

Executive summary

• Net sales grew 24.9% year-over-year to SEK 623.1 million, with subscription net sales up 40.7% and ARR up 24.7%.

• Gross margin declined to 78.4% from 80.7% due to currency headwinds, notably a weaker U.S. dollar.

• EBIT margin was 14.9% (adjusted 19%), with EBIT at SEK 92.6 million, impacted by one-off costs and higher personnel expenses.

• Bookings decreased by 9.5% year-over-year to SEK 523.8 million, reflecting extended customer decision cycles and macroeconomic uncertainty.

• Strong demand persists in telecom, finance, and public sectors, but sales cycles for major deployments are longer.

Financial highlights

• Subscription net sales increased from SEK 56 million to SEK 79.6 million, up 40.7% and now 12.8% of net sales.

• Gross profit rose to SEK 488.7 million, with a gross margin of 78.4% (down from 80.7%).

• EBIT reached SEK 92.6 million, with a margin of 14.9% (adjusted 19%).

• 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, with delayed purchasing decisions.

• Long-term targets remain: 25% average annual net sales growth and 20% EBIT margin.

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