InCoax Networks (INCOAX) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were SEK 25.6 million, down 17% year-over-year, with a gross margin of 64% (up from 57%).

• Operating profit (EBITA) was SEK -2.5 million, compared to SEK 4.6 million in Q1 2024, mainly due to lower sales and higher costs tied to the Nokia partnership.

• Major commercial milestones included a global launch with Nokia, continued strong orders from Google Fiber, and a new order from a US Tier-1 operator.

• A directed share issue raised SEK 33.5 million, strengthening liquidity and supporting growth initiatives.

Financial highlights

• Net sales: SEK 25,625 thousand (Q1 2024: SEK 30,793 thousand).

• Gross margin: 64% (Q1 2024: 57%), driven by product mix and higher service/maintenance sales.

• EBITA: SEK -2,459 thousand (Q1 2024: SEK 4,580 thousand).

• Net income after tax: SEK -2,503 thousand (Q1 2024: SEK 4,327 thousand).

• Cash flow from operating activities: SEK 5,125 thousand (Q1 2024: SEK -953 thousand).

Outlook and guidance

• Targeting at least 50% annual organic revenue growth, positive operating cash flow, and EBIT margin of at least 10% from 2025.

• Sales expected to fluctuate between quarters due to market uncertainty and operator investment timing.

• Well-positioned to scale deliveries as operator interest grows, with flexibility to shift production outside China if needed.