Observit (OBSE) Q3 2025 earnings summary

Executive summary

• Achieved strong growth in recurring software revenues, up 24.5% year-over-year for Q3 2025, with improved profitability despite increased investments in development and office relocation.

• International expansion continued, including delivery of 2,000 cameras to Denmark and a paneuropean partnership with Ruf Group for over 700 cameras in the Netherlands.

• A directed share issue of 26.3 MSEK to Eiffel Investment Group was completed after the quarter, supporting accelerated development and expansion.

Financial highlights

• Net sales for Q3 2025 reached 16.3 MSEK, up from 15.0 MSEK in Q3 2024; gross profit was 8.1 MSEK with a gross margin of 50.0% (44.4%).

• EBIT for Q3 2025 was 1.5 MSEK (1.1 MSEK last year), with an EBIT margin of 8.9% (7.6%).

• EBITDA for Q3 2025 was 3.1 MSEK (2.5 MSEK last year).

• Result before tax (EBT) for Q3 2025 was 1.3 MSEK (1.0 MSEK last year); EPS was 0.0024 SEK (0.002 SEK last year).

• For the first nine months, net sales were 48.3 MSEK, up 22.1% year-over-year.

Outlook and guidance

• Q4 is expected to show continued strong growth in recurring software revenues, with lower hardware sales as more deliveries shift to partners.

• The underlying market trend remains strong, validating the focus on software and international expansion for medium- and long-term growth.