Precise Biometrics (PREC) Q2 2025 earnings summary

Executive summary

• Strong demand and stable performance continued despite geopolitical shifts and a weaker USD, with commercial progress in national ID programs and new customer projects in India expected to drive growth in 2025.

• Expansion in visitor management systems and a rebranding initiative were key developments during the quarter.

• The company remains cost-conscious, achieving efficiency improvements and strengthening sales capabilities with minimal cost increases.

Financial highlights

• Q2 net sales were SEK 20.8 million, up 1.0% year-over-year; interim period net sales were SEK 40.8 million, down 3.5% year-over-year.

• Q2 EBITDA was SEK -0.5 million; adjusted for currency and revenue allocation effects, EBITDA was SEK 1.4 million.

• Q2 operating loss (EBIT) was SEK -5.7 million; interim EBIT was SEK -12.8 million.

• Q2 earnings per share were SEK -0.07; interim period EPS was SEK -0.17.

• Cash flow from operating activities was SEK 1.3 million in Q2 and SEK 3.4 million for the interim period.

• Annual Recurring Revenue (ARR) at period end was SEK 18.2 million, impacted by a SEK 0.8 million loss due to a customer bankruptcy.

Outlook and guidance

• Positive outlook for full year 2025, with strong indications for solid growth driven by new offerings in national ID, palm recognition, and on-premise access systems.

• Market demand for biometric and cybersecurity solutions is increasing, though business discussions are taking longer due to the market environment.