Knowit (KNOW) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 were SEK 1,490.5 million, down 11.3% year-over-year, with utilization rates improving but still below target.

• Two strategic acquisitions were completed in fintech (Insicon/Incycle) and defense (Milso), supporting future growth.

• Market conditions remain mixed across the Nordics: Sweden improving, Norway stable, Finland and Denmark facing challenges.

• Utilization trends are positive in Solutions and Experience, but salary increases continue to outpace price hikes.

• Recruitment is focused on growth areas, with cautious hiring and positioning for market recovery.

Financial highlights

• Adjusted EBITDA/EBITA for Q2 was SEK 54 million, with margin at 3.6%, down from 5.6% last year.

• Rolling 12-month adjusted EBITDA was SEK 323 million on revenues of SEK 6.1 billion (margin 5.3%).

• Net debt stands at SEK 647 million, with a leverage ratio of 1.3x, and cash equivalents at SEK 241 million.

• Cash flow from operating activities and results after tax declined year-over-year.

Outlook and guidance

• Utilization rates are expected to improve gradually, with potential for faster recovery if the market strengthens.

• Price pressure is expected to persist through 2025, with possible stabilization or improvement in 2026.

• Recruitment will remain cautious, with readiness to accelerate hiring in growth areas as demand improves.

• Q3 is expected to follow normal seasonality, with EBITDA typically lower than Q2.