Knowit (KNOW) Q1 2025 earnings summary

Executive summary

• Net sales declined 9.8% year-over-year to SEK 1,593.6 million, with a reduction of 337 employees and gradual improvement in utilization, especially in Solutions.

• EBITA was SEK 104.5 million, margin 6.6%, down from 7.7% last year, with cost control and efficiency remaining key priorities.

• Several significant new deals were signed, supporting confidence in continued recovery.

• Utilization rates improved across the quarter, especially in Solutions, while Experience stabilized at low levels.

• Cost optimization and client-centric strategies are ongoing to address weak demand in some segments.

Financial highlights

• Net sales for Q1 2025 were SEK 1,593.6 million, a decrease of 9.8% compared to SEK 1,766.3 million in Q1 2024.

• EBITA: SEK 104.5 million (down from SEK 136.3 million); EBITA margin: 6.6% (down from 7.7%).

• Rolling 12-month adjusted EBITDA was SEK 363 million on revenues of SEK 6.2 billion, margin 5.8%.

• Net debt stood at SEK 625 million, leverage ratio 1.2x, well within the target of not exceeding 2x.

• Cash and cash equivalents: SEK 363 million at quarter end.

Outlook and guidance

• Order book has grown from Q4, with many deals signed or about to be signed, though not yet visible in financials.

• Utilization is expected to continue improving, with recruitment focused on growth areas such as defense and cybersecurity.

• Market recovery remains slow and uncertain, especially in Sweden, Denmark, and Finland.

• Continued focus on cost savings, sales efforts, and offer development until significant market change occurs.

• Management sees positive demand signals in defense and e-commerce.