Knowit (KNOW) Q4 2025 earnings summary

Executive summary

• Margin and utilization improvements were achieved across all four business areas for the first time since Q1 2022, driven by efficiency gains and proactive sales efforts.

• Net sales for 2025 decreased by 9.6% year-over-year to SEK 5,798.0 million, with a 9.1% drop in Q4 to SEK 1,492.0 million.

• A SEK 399 million non-cash goodwill impairment related to the 2021 Cybercom acquisition was recognized in Q4, resulting in a net loss for the year.

• The Board proposed a 9% higher dividend of SEK 2.50 per share, reflecting confidence in long-term prospects.

• A new business area, Products, will be established in 2026 to accelerate growth in IP- and platform-based solutions.

Financial highlights

• Q4 2025 net sales were SEK 1,492.0 million, down 9.1% year-over-year; full-year net sales were SEK 5,798.0 million, down 9.6%.

• Adjusted EBITA for Q4 increased to SEK 116.0 million (from SEK 106.6 million), margin improved to 7.8% from 6.5% year-over-year.

• Full-year adjusted EBITA was SEK 337.1 million (down from SEK 395.0 million), margin 5.8% (down from 6.2%).

• Earnings per share were SEK -10.43 for the year, negative due to the impairment.

• Cash flow from operating activities was SEK 321.5 million for the year, down from SEK 626.2 million in 2024.

Outlook and guidance

• Management sees improved utilization, efficiency, and profitability, with all business areas showing positive margin development.

• The new Products business area is expected to drive further innovation and recurring revenue streams, with more details in Q1 2026.

• Entering 2026 with a strengthened position in data and AI, supporting clients' digital transitions.

• The market remains cautious, but gradual improvement in demand and a stronger foundation for future growth are noted.

• Strong pipeline and broadened client base expected to support future growth.