Karnov Group (KAR) Q2 2025 earnings summary

Executive summary

• Net sales reached SEK 649 million in Q2 2025, up 4% year-over-year, driven by strong online and AI-related sales, especially in Region North.

• Adjusted EBITA/EBITDA margin improved to 23% in Q2, reflecting operational leverage and cost synergies.

• Region North delivered robust organic growth and margin improvement, while Region South underperformed due to weak offline and training sales, leading to a divestment of the Spanish training business.

• AI-powered workflow tools are set to launch in autumn, expanding the product offering and customer value.

• Portfolio optimization and cost-efficiency initiatives are ongoing, with significant synergies already realized.

Financial highlights

• Q2 net sales: SEK 649 million (up 4.2% year-over-year); organic growth 4.6%, acquired growth 3.6%, FX impact -4.0%.

• Adjusted EBITA/EBITDA: SEK 148 million (up 12–12.5%), margin 22.8–23% (up from 21.1%).

• Adjusted free cash flow was negative SEK 3 million in Q2, reflecting seasonal patterns and working capital changes.

• Leverage at 2.5x EBITDA, below the financial target, with net debt at SEK 2,041 million.

• For H1 2025: net sales SEK 1,322 million (up 5.3%), adjusted EBITA SEK 323 million (up 17.4%), profit SEK 85 million.

Outlook and guidance

• AI adoption and new workflow solutions are expected to drive further growth and recurring revenue.

• Cost-synergy initiatives target EUR 20 million in savings by end of 2026; EUR 18–18.1 million already achieved.

• Divestment of the Spanish training business is expected to improve Group margins.

• No formal financial forecasts provided; management reiterates focus on cost synergies and AI-driven growth.