Freja eID Group (FREJA) Q2 2025 earnings summary

Executive summary

• Net sales increased by 21% year-over-year to 12.1 MSEK for Q2 and 24.7 MSEK for H1, driven by strong growth in the Freja eID segment, while Fulfilment declined.

• Annual Recurring Revenue (ARR) for Freja eID rose 55% year-over-year to 37.4 MSEK, with user numbers up 28% to 1,418,000.

• Adjusted EBITDA improved significantly to 1.8 MSEK in Q2 and 4.2 MSEK in H1, with adjusted EBIT losses narrowing.

• A major contract expansion with the Swedish Migration Agency boosted ARR by 5.2 MSEK.

• A directed share issue raised 32 MSEK before costs, strengthening the financial position.

Financial highlights

• Q2 net sales: 12.1 (10.0) MSEK, up 21% year-over-year; H1 net sales: 24.7 (20.3) MSEK, up 21%.

• Adjusted EBITDA: 1.8 (0.1) MSEK in Q2; 4.2 (0.4) MSEK in H1. Adjusted EBIT: -2.0 (-3.7) MSEK in Q2; -3.4 (-7.2) MSEK in H1.

• Net result: -4.8 (-7.4) MSEK in Q2; -7.2 (-15.7) MSEK in H1. EPS: -0.19 (-0.32) SEK in Q2; -0.30 (-0.69) SEK in H1.

• Operating cash flow: 1.1 (0.3) MSEK in Q2; 7.8 (0.7) MSEK in H1.

• Liquidity at period end: 23.7 (4.3) MSEK.

Outlook and guidance

• Continued focus on scaling Freja eID in Sweden and internationally, with Sweden as the main growth engine.

• Increased demand from public sector, finance, and universities in neighboring countries; intensified international expansion planned.

• Fulfilment segment footprint to be halved in 2026 to reflect lower demand.