Crayon Group (CRAYN) Q1 2025 earnings summary

Executive summary

• Gross profit grew 5% year-over-year to NOK 1,546m, driven by strong international performance, while the Nordics underperformed.

• Adjusted EBITDA margin declined to 12.1% due to ongoing investments and higher payroll, with net income rising to NOK 43m, up NOK 33m year-over-year.

• Net working capital improved to -NOK 1,486m, a NOK 401m improvement year-over-year, marking six consecutive quarters of progress.

• SoftwareOne achieved over 90% shareholder acceptance for acquisition, with closing expected in Q2 2025 and integration planning underway.

• Significant headcount increase and integration preparations are supporting future growth and expanded capabilities.

Financial highlights

• Gross sales reached NOK 17.4bn, up 25% year-over-year; gross profit was NOK 1,546m (+5% YoY); revenue increased 7% to NOK 1,741m.

• Adjusted EBITDA was NOK 186m (margin 12.1%), down from NOK 203m (13.8%) in Q1 2024.

• Net profit was NOK 43m, with EPS improving to NOK 0.54 from NOK 0.14.

• Operating cash flow for Q1 was NOK 87m; liquidity reserves at NOK 3,348m; leverage ratio at 0.4x.

• Factoring reduced to NOK 122m from NOK 247m year-over-year.

Outlook and guidance

• Full-year 2025 guidance: gross profit growth of 15%-20%, adjusted EBITDA margin of 19%-22%, and net working capital as a share of gross profit at 15%.

• Medium-term goal is a gradual increase in EBITDA margin to 25%.

• Management expects improved Nordic performance in H2 due to leadership changes and better sales execution.

• Continued momentum expected from CSP and services growth, with high activity and new contract wins supporting future growth.

• SoftwareOne acquisition expected to close in Q2 2025, with compulsory acquisition of remaining shares planned.