Precise Biometrics (PREC) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were SEK 20.0 million, down 7.7% year-over-year, impacted by currency effects and a renegotiated customer agreement, but with stable demand and positive commercial progress, especially in national ID programs.

• EBITDA was SEK -1.7 million, but adjusted for currency and agreement effects, EBITDA was SEK 0.9 million, reflecting cost increases for sales expansion and customer caution due to global uncertainty.

• Cash flow from operating activities improved to SEK 2.1 million from SEK -2.8 million in Q1 2024, and the company remains optimistic about growth for the full year 2025.

• Significant events included approval of BioLive for India's Aadhaar program, entry into Norway's visitor management market, and a rebranding initiative post-quarter.

Financial highlights

• Net sales: SEK 20.0 million (Q1 2024: SEK 21.7 million); net sales growth: -7.7%.

• EBITDA: SEK -1.7 million (Q1 2024: SEK 3.1 million); adjusted EBITDA: SEK 0.9 million.

• Operating profit (EBIT): SEK -7.1 million (Q1 2024: SEK -2.8 million).

• Earnings per share: SEK -0.09 (Q1 2024: SEK -0.04).

• Gross margin: 71.9% (Q1 2024: 72.2%).

• Cash and cash equivalents: SEK 36.0 million (Q1 2024: SEK 41.1 million).

• Annual Recurring Revenue (ARR): SEK 18.4 million (Q1 2024: SEK 18.3 million).

Outlook and guidance

• Management expects healthy growth for 2025, citing strong macro drivers, new opportunities in national ID programs, and a robust product portfolio.

• Cautious customer behavior and prolonged business cycles are expected to persist due to global economic and geopolitical uncertainty, but new customer projects and investments in sales are anticipated to yield results.