Karnov Group (KAR) Q4 2025 earnings summary

Executive summary

• Achieved 4% organic growth in Q4, driven by AI adoption and online sales, with Region North leading at 10% organic online sales growth and strong customer renewals.

• Adjusted EBITDA/EBITA margin improved to 26% in Q4, up over 2 percentage points year-over-year, with leverage reduced to 1.3x, reflecting improved profitability and operational efficiency.

• AI user base increased fivefold in 2025, with major adoption among legal professionals; AI-powered workflow tools to launch in 2026.

• Divestment of EHS completed, generating SEK 1.1 billion in proceeds, strengthening the balance sheet and enabling a SEK 500 million share buyback program.

• Board proposes no dividend for 2026, focusing on buybacks and organic AI investments.

Financial highlights

• Q4 net sales were SEK 665 million, with organic growth of 3.8% and online sales up 5% in local currency; currency effects and divestments impacted total growth.

• Adjusted EBITDA/EBITA for Q4: SEK 172 million (26% margin); full-year adjusted EBITA up 14.9% to SEK 667 million, margin 25.3%.

• Adjusted free cash flow in Q4: SEK 239 million; full year SEK 445 million.

• Earnings per share (diluted): Q4 SEK 7.79; full year SEK 8.98.

Outlook and guidance

• Common AI platform to be rolled out across all geographies by end of Q1 2026, with workflow tools launching in late June 2026.

• Monetization of workflow tools likely to be seat-based, with pricing and packaging under review.

• Financial targets: 4-6% organic annual growth (medium term), adjusted EBITA margin above 25%, leverage ratio ≤3.0.