Arco Vara (ARC1T) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw a stable but subdued real estate market, with buyers remaining cautious and sales volumes below expectations.

• The company focused on launching and advancing several development projects, including Luther Quarter, Soodi 6, Spordi, and Arcojärve.

• Sales targets for Q4 were not met, resulting in quarterly results below both forecasts and the prior year.

• The company remains committed to developing high-quality, sustainable living environments and enhancing the home-buying experience.

Financial highlights

• Revenue for 2025 was €7.7 million, up €0.2 million year-over-year; Q4 revenue was €2.1 million, down from €3.4 million in Q4 2024.

• Operating profit for 2025 was €195 thousand (2024: €69 thousand); net loss was €479 thousand, improved from a €624 thousand loss in 2024.

• 48 apartments sold in 2025 (28 preliminary, 20 real right contracts), compared to 30 apartments and 3 commercial units in 2024.

• Cash and cash equivalents at year-end were €2.8 million (2024: €1.7 million).

• Total assets more than doubled to €87.9 million, mainly due to new project acquisitions.

Outlook and guidance

• Revenue forecast for 2026 is €31.0 million, with a projected net loss of €1.3 million.

• Several major projects, including Luther Quarter and Arcojärve, are expected to drive future growth.

• Public sales for Luther Quarter to begin in spring 2026, with construction starting in summer 2026.