Envar Holding (ENVAR) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 reached SEK 22,677 thousand, up 104.94% year-over-year, driven by increased outsourcing in the gaming market and strong order inflow from major clients.

• Operating profit (EBIT) improved to SEK 4,883 thousand from a loss of SEK -3,629 thousand in Q1 2024, reflecting a significant turnaround in profitability.

• The company executed a major contract extension valued at SEK 9.1 million and continued to invest in recruitment and brand-building activities.

Financial highlights

• EBITDA for Q1 2025 was SEK 5,061 thousand, with an EBITDA margin of 22.32%, compared to SEK -3,425 thousand and -30.95% margin in Q1 2024.

• Earnings per share (basic) were SEK 0.25, up from SEK -7,167.05, reflecting a share split and improved profitability.

• Cash and cash equivalents totaled SEK 53,285 thousand, with no interest-bearing liabilities.

• Cash flow from operating activities was SEK -4,553 thousand, impacted by working capital changes and ongoing investments.

Outlook and guidance

• The company anticipates continued strong demand for outsourced game development, supported by recent large orders and ongoing recruitment.

• Envar Games is on track for an early access release of its in-house developed game in Q2 2026.