Acast (ACAST) Q1 2025 earnings summary

Executive summary

• Net sales grew 30% year-over-year to SEK 535.4m in Q1 2025, with North America up 65% and Europe up 17%, driven by larger campaigns and strategic execution.

• Gross margin was 37%, slightly down due to lower margins in the US, but gross profit increased 26% year-over-year.

• Adjusted EBITDA margin improved to -1% from -4% a year ago, reflecting ongoing profitability improvements.

• Operating cash flow turned positive at SEK 29m, supported by favorable working capital changes.

• Average revenue per listen rose 31% to SEK 0.48, despite a 1% decline in total listens.

Financial highlights

• Net sales: SEK 535.4m (up 30% year-over-year); organic growth 26% after adjusting for FX and acquisitions.

• Gross margin: 37%, impacted by lower margin in North America due to product mix and sponsorship sales.

• Adjusted EBITDA: SEK -3.3m (margin -1%), improved from SEK -15.1m (-4%) year-over-year, excluding SEK 0.6m in transaction costs and SEK 4.1m in listing preparation costs.

• Operating expenses increased 19% year-over-year, mainly due to investments in high-growth markets.

• Operating cash flow was SEK +29 million in Q1, with a cash position of SEK 652 million at quarter-end.

Outlook and guidance

• Targets 15% organic net sales CAGR for 2025–2028.

• Aims for an adjusted EBITDA margin of 3–5% in 2025 and positive operating cash flow for the year.

• Confident in ability to adapt investment levels to ensure sustained profitable growth amid macro uncertainty.

• Monetization momentum expected to continue, with ARPL up 31% year-over-year.