Braincool (BRAIN) Q4 2024 earnings summary

Executive summary

• Achieved all-time high net sales in 2024, up 72% year-over-year to SEK 40.0 million, driven by BrainCool™ System sales and consumables.

• Cost reduction initiatives led to improved gross margin (23.5% in Q4) and lower overhead, with a 35% decrease in Q4 overhead costs year-over-year.

• Cash flow from operations improved sequentially, with negative cash flow reduced from SEK 25 million in Q2 to SEK 9 million in Q4.

• Clinical studies (COTTIS 2, PRINCESS 2) expanded, with accelerated patient enrollment and new country participation.

• Market approval for BrainCool™ System obtained in Malaysia, expanding presence in Asia.

Financial highlights

• Q4 net sales: SEK 12.0 million (+26% year-over-year); full year net sales: SEK 40.0 million (+72%).

• Q4 gross profit: SEK 4.1 million; full year gross profit: SEK 15.2 million.

• Q4 EBITDA: SEK -8.1 million; full year EBITDA: SEK -39.4 million.

• Q4 EBIT: SEK -9.1 million; full year EBIT: SEK -42.2 million.

• Cash at year-end: SEK 31.4 million; equity: SEK 145.9 million.

Outlook and guidance

• Expect continued revenue growth and improved operating results in 2025, with further gross margin improvement as automation and inventory reduction take effect.

• Overhead costs to decrease further as US operations are closed in H1 2025.

• Targeting gross margin of ~50% by 2026.

• Orders for 36 BrainCool™ Systems already received for Q1 2025.