Modelon (MODEL) Q4 2025 earnings summary

Executive summary

• Net revenue for Q4 2025 was MSEK 16.3, down 29% year-over-year, mainly due to adverse currency effects, reduced US customer activity, and fewer software deals in North America.

• Annual recurring revenue (ARR) in Q4 2025 was MSEK 50.8, a 7% decrease year-over-year, reflecting lower activity at key US accounts.

• Adjusted EBIT improved to MSEK -5.2 in Q4 2025 from MSEK -11.6 in Q4 2024, driven by cost reductions and efficiency programs.

• Net profit for Q4 2025 was MSEK -5.0, compared to MSEK -14.1 in Q4 2024.

• No dividend is proposed for the 2025 financial year.

Financial highlights

• Full-year 2025 net revenue was MSEK 71.5, down 14% from 2024; software revenues were MSEK 55.8, down 4%.

• Service revenues for the year fell 38% to MSEK 15.7.

• Adjusted EBIT for 2025 was MSEK -27.0, an improvement from MSEK -49.4 in 2024.

• Cash balance at year-end was MSEK 42.1, down 33% from the previous year.

• Cash flow from operations for Q4 2025 was MSEK -9.0, an improvement from MSEK -11.4 in Q4 2024.

Outlook and guidance

• Management expects more stable business conditions in 2026 and targets ARR growth of 20%, positive cash flow, and a long-term EBIT margin above 20%.

• Sales organization restructuring and a new Customer Success team are expected to drive revenue growth.