ZetaDisplay (ZETA) Q1 2025 earnings summary

Executive summary

• Adjusted net sales rose 26.8% year-over-year to SEK 159.6 million, driven by strategic acquisitions and 7% organic growth, especially from global accounts.

• Adjusted recurring revenue increased 9.9% to SEK 65.4 million, now 41% of net sales, with a focus on expanding this share for long-term growth.

• Adjusted EBITDA doubled to SEK 22.0 million, reflecting operational efficiency and cost control.

• Awarded "Outstanding Company of the Year" at the 2025 Digital Signage Awards, highlighting innovation and industry impact.

• Signed a five-year exclusive framework agreement with Ruter, Oslo’s public transport authority, for a major digital signage upgrade.

Financial highlights

• Net sales grew 25.5% year-over-year to SEK 159.6 million; recurring revenue up 7.4% to SEK 65.4 million.

• Adjusted gross margin declined to 56.4% from 59.5%, mainly due to product mix and lower-margin acquisitions.

• Operating loss after restructuring costs was SEK -4.9 million, improved from SEK -12.3 million a year ago.

• Net loss for the quarter was SEK -15.8 million, compared to SEK -24.5 million last year.

• Cash flow from operating activities improved to SEK 12.2 million from SEK 3.0 million; total cash flow was SEK -13.2 million.

Outlook and guidance

• Positive market trends in hardware, analytics, AI, retail media, and security support growth ambitions.

• Integration of Beyond Digital Solutions in the UK and transformation in Germany expected to enhance international service delivery.

• Focus remains on innovation, operational excellence, and cost discipline to drive long-term profitable growth.