Observit (OBSE) Q1 2025 earnings summary

Executive summary

• Achieved a strong start to 2025 with new platform launch, expanding addressable market by enabling integration of existing vehicle cameras; secured deals for 3,000 new cameras and increased recurring software revenue by 32% year-over-year.

• Focused on expanding reseller partnerships and investing in AI-driven product development, including upcoming automated damage detection and support for body-worn cameras.

• Signed a major contract with a leading Nordic transport operator, started operation of 3,000 security cameras and 1,200 passenger counting cameras, and received a SEK 2 million order for digitalizing older transit cameras.

Financial highlights

• Net sales for Q1 2025 reached SEK 17.3 million, up from SEK 13.6 million in Q1 2024; recurring software revenue (ARR) at quarter-end was SEK 21.4 million, up 32% year-over-year.

• Gross profit was SEK 9.1 million with a gross margin of 52.3%, up from 43.4% last year, driven by higher recurring software revenue.

• EBITDA was SEK 2.4 million (Q1 2024: SEK 1.9 million); EBIT was SEK 0.8 million (Q1 2024: SEK 0.6 million); EBT was SEK 0.6 million (Q1 2024: SEK 0.5 million).

• Earnings per share remained at SEK 0.001.

Outlook and guidance

• Anticipates continued strong demand and growth in recurring software revenue throughout 2025, supported by new platform capabilities and international pilot projects likely to convert to orders.

• Plans to increase resources for partner network expansion and to launch the first AI service for automatic damage detection later in the year.