Acast (ACAST) Q2 2025 earnings summary

Executive summary

• Net sales grew 27% year-over-year and organic growth reached 32% in Q2 2025, with North America, especially the U.S., becoming the largest revenue market for the first time.

• Adjusted EBITDA margin reached 3% in Q2, despite SEK 59 million in one-off costs related to CEO transition and re-listing preparations.

• Launched Acast Creative Studios, integrating Wonder Media Network, enabling larger branded content deals and debuting original productions.

• Rolled out Smart Recommendations, an AI-driven media planner, improving campaign planning efficiency and monetization for niche content.

• Leadership changes included the appointment of a new CEO and board director, with further management transitions ongoing.

Financial highlights

• Q2 2025 net sales: SEK 607m (up from SEK 478m in Q2 2024); organic net sales growth 32%.

• Gross margin improved to 40%, supported by favorable product mix and yield management.

• Adjusted EBITDA was SEK 16m (3% margin), a 5 percentage point improvement year-over-year; reported EBITDA was -SEK 43m due to one-off costs.

• Operating cash flow was -SEK 53m, impacted by -SEK 85m in working capital changes, mainly higher receivables; cash position at quarter-end was SEK 572m.

• Average revenue per listen (ARPL) rose 27% year-over-year to SEK 0.55, nearly doubling in two years.

Outlook and guidance

• Targeting positive operating cash flow for full year 2025, expecting working capital impact to unwind in H2.

• Updated financial targets: organic net sales CAGR of 15% from 2025–2028, adjusted EBITDA margin of 3–5% for full-year 2025.

• Management remains confident in continued margin expansion and profitability improvements beyond 2025, leveraging technology and creator network.

• No material shifts in advertiser buying behavior despite macro uncertainty; growth momentum expected to continue, with record bookings in two of the top three markets.