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I.A.R Systems Group (IAR) investor relations material
I.A.R Systems Group Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Transition to a subscription-based business model led to short-term revenue decline but increased recurring income and customer retention, with 21% of Q2 deals from subscriptions and 80 new customers added, especially in APAC.
Net sales for Q2 2025 were SEK 109.4m, down 11.2% year-over-year (–4.5% in local currency), mainly due to currency headwinds and deferred income from subscriptions.
Adjusted EBITDA margin for H1 2025 was 28.8% (down from 38.0%), impacted by FX effects, higher personnel costs, and the business model shift.
Order book grew 6% year-over-year to SEK 138.7m, with a stable and expanding pipeline driven by subscriptions.
Finnish software company Qt made an acquisition offer of SEK 180 per share in July, affecting EBIT/EBITDA due to related costs.
Financial highlights
Q2 2025 net sales: SEK 109.4m (–11.2% YoY), EBITDA: SEK 17.3m (15.8% margin), adjusted EBITDA: SEK 25.5m (23.3% margin).
H1 2025 net sales: SEK 233.5m (–3.9% YoY), EBITDA: SEK 55.9m (23.9% margin), adjusted EBITDA: SEK 67.2m (28.8% margin).
Q2 operating profit: SEK 4.6m (4.2% margin), adjusted operating profit: SEK 12.7m (11.7% margin).
Earnings per share (basic) Q2: SEK 0.16 (vs. 1.19), H1: SEK 1.65 (vs. 6.34).
Cash flow from operating activities Q2: SEK 41.9m (vs. 35.7m), H1: SEK 65.6m (vs. 68.4m).
Outlook and guidance
Focus for H2 2025 is on accelerating the subscription transition, expanding the customer base, and increasing platform usage.
Positive signals include a growing pipeline, strong customer feedback, and signs of recovery in the US and continued outperformance in China.
Long-term targets: 20% annual sales growth in local currency and operating margin above 20% within 3–5 years.
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