BTS Group (BTS) Q2 2025 earnings summary

Executive summary

• Q2 2025 EBITDA fell 23% and EBITA dropped 23% to MSEK 84, mainly due to BTS North America's underperformance, one-time costs from the Sounding Board acquisition, and unfavorable USD exchange rates.

• Net sales for Q2 2025 were MSEK 721, down slightly from MSEK 730 in Q2 2024, with 7% currency-adjusted growth and 2% organic growth.

• BTS Europe and BTS Other Markets returned to double-digit growth, with Europe up 31% and Other Markets up 19% year-over-year.

• AI offerings are now included in 100% of proposals, driving productivity and new business.

• Profit after tax dropped 35% to MSEK 39, and EPS decreased 35% to SEK 2.03.

Financial highlights

• BTS North America posted a SEK 36.3 million loss in Q2, with half from one-time severance and legal fees.

• Adjusted EBITDA for H1 2025 was SEK 158 million, slightly below SEK 169 million in H1 2024, after adjusting for SEK 14 million in one-off costs.

• AI adoption services revenue grew 425% year-over-year, with $8 million in bookings and $3 million in AI platform subscription bookings.

• Executive coaching business profit grew 34% in Q2, with record renewal rates.

• Cash flow from operating activities for H1 2025 was MSEK -97, compared to MSEK 17 in H1 2024.

Outlook and guidance

• Full-year outlook has been lowered; EBITA for 2025 is expected to be worse than 2024.

• North America is expected to return to growth in H1 2026, with Q3 and Q4 2025 showing gradual improvement as new leadership and strategy take effect.

• Most cost savings from the $5 million program will be realized in Q3 and Q4, with further improvements in revenue per consultant expected.

• Europe is expected to maintain double-digit growth for the year, though at a slower pace in H2.