InCoax Networks (INCOAX) Q4 2024 earnings summary

Executive summary

• Net sales increased by 25% year-over-year to 74,498 KSEK, driven by strong demand for cost-effective broadband solutions and strategic partnerships, notably with Nokia and Google Fiber.

• Operating loss widened to -19,378 KSEK from -16,730 KSEK, mainly due to deferred orders and increased development costs linked to the Nokia collaboration.

• High gross margin of 57% for 2024, attributed to a greater share of service and support in the product mix.

• Cash flow for the year was -12,758 KSEK, impacted by delayed deliveries and growth investments.

• Strategic expansion into the APAC market and new partnerships in the US and Finland position InCoax for future growth.

Financial highlights

• Net sales: 74,498 KSEK (up from 59,619 KSEK year-over-year).

• Operating loss (EBIT): -19,378 KSEK (vs. -16,730 KSEK year-over-year).

• Gross margin: 57% (up from 52% year-over-year).

• Result after tax: -19,150 KSEK (vs. -16,909 KSEK year-over-year).

• Cash and cash equivalents at year-end: 2,232 KSEK (vs. 14,990 KSEK prior year).

Outlook and guidance

• At least 50% annual organic revenue growth targeted over the next 3–5 years.

• Positive operating cash flow and EBIT margin of at least 10% expected from 2025.

• Anticipates continued sales fluctuations in the near term, but expects long-term growth as operator investments recover.

• Nokia partnership expected to drive significant sales from H2 2025.