Image Systems (IS) Q2 2025 earnings summary

Executive summary

• Net sales increased in Q2 to MSEK 49.5 from MSEK 44.3 year-over-year, despite challenging market conditions and longer sales cycles due to cautious investment climate.

• Operating profit declined, mainly due to Motion Analysis's transition to a subscription-based model and a hardware-heavy product mix in RemaSawco.

• Order intake dropped to MSEK 26.8 from MSEK 37.3 year-over-year, but order backlog remained stable at MSEK 84.6.

• Strategic focus remains on expanding market presence, product development, and direct sales channels in key markets.

Financial highlights

• Q2 EBITDA was MSEK 2.7, down from MSEK 4.1 year-over-year; EBITDA margin fell to 5.2% from 8.5%.

• Gross margin decreased to 63% from 67% in Q2 2024.

• Earnings per share for Q2 was SEK -0.04, compared to SEK 0.00 last year.

• Cash flow from operating activities in Q2 was MSEK -9.6, down from MSEK 12.9 year-over-year.

• Solidity at quarter-end was 57%, compared to 59% a year earlier.

Outlook and guidance

• The transition to a subscription-based model in Motion Analysis is expected to stabilize revenues and improve margins over time, though it temporarily impacts earnings.

• RemaSawco is intensifying its focus on service offerings and short-cycle projects to support near-term sales.

• Long-term EBITDA margin target remains at 15%, requiring further net sales growth.