Knowit (KNOW) Q3 2025 earnings summary

Executive summary

• Utilization and efficiency gains in Solutions, Experience, and Connectivity drove improved profitability and stronger margins year-over-year.

• AI-driven projects and innovation are expanding opportunities and market reach across all segments.

• The Insight segment continues to face challenges due to market softness, delayed projects, and restructuring.

• Focus remains on operational efficiency, sales, client engagement, and preparing for organic growth.

• Net sales for January–September 2025 decreased by 9.8% year-over-year to SEK 4,306.0 million, with a 7.9% drop in Q3 to SEK 1,221.9 million.

Financial highlights

• Group sales for Q3 were SEK 1,221.9 million, down 7.9% year-over-year; adjusted for acquisitions, divestments, and FX, the decline was 3%.

• Adjusted EBITA/EBITDA for Q3 was SEK 62.5 million, up from SEK 57.9 million last year; margin improved to 5.1% from 4.4%.

• Rolling 12-month adjusted EBITDA reached SEK 328 million, with revenues at SEK 5.9 billion and an EBITDA margin of 5.5%.

• Net debt stood at SEK 608 million, with a leverage ratio of 1.2, well below the target of 2.

• Cash and cash equivalents at period end were SEK 211.5 million.

Outlook and guidance

• Activity levels remain high with several new assignments secured in the quarter.

• Recruitment will intensify once utilization further improves; positive net recruitment expected after utilization targets are met.

• Continued focus on aligning price development with rising salary costs and maintaining cost discipline.

• Cautious optimism for a return to organic growth, especially in public sector and digitalization-driven demand.

• No significant pricing pressure or postponements observed in the public sector post-summer.