InCoax Networks (INCOAX) Q4 2025 earnings summary

Executive summary

• 2025 concluded with results below expectations and continued negative cash flow as the company transitioned from a development phase to commercial execution, finalizing integration with Nokia's Gigabit Connect platform.

• A new management structure and cost reductions were implemented, with a focus on sales and cash flow to achieve positive cash flow within the next year.

• The first product integrated with Nokia will launch in Q1 2026, providing access to Nokia's global operator market.

Financial highlights

• Net sales for Q4 2025 were 9,027 KSEK, up 22% year-over-year; full-year net sales were 48,055 KSEK, down from 74,498 KSEK.

• Gross margin for Q4 was 50% (down from 70%); full-year gross margin was 62% (down from 57%).

• Operating profit (EBITA) for Q4 was -10,512 KSEK; full-year EBITA was -32,009 KSEK.

• Profit after tax for Q4 was -10,882 KSEK; full-year profit after tax was -32,560 KSEK.

• Cash flow for Q4 was -5,764 KSEK; full-year cash flow including financing was 6,516 KSEK.

Outlook and guidance

• The company aims to reach positive cash flow within the next year through strict capital discipline, cost reductions, and increased sales.

• Ongoing cost reductions are expected to lower ongoing costs by 40% and save close to SEK 25 million in 2026.

• New product launches and expanded commercial partnerships, especially with Nokia, are expected to drive growth.