Proact IT Group (PACT) Q3 2025 earnings summary

Executive summary

• Q3 revenue declined 4.3% year-over-year to SEK 1,083.5 million, mainly due to weaker system sales and challenging conditions in West and Central, partially offset by strong growth in the UK and Nordic & Baltics.

• Adjusted EBITA/EBITDA was SEK 76.2 million with a 7% margin, stable year-over-year despite lower revenues.

• Recurring revenue and annualized recurring revenue increased, with annualized recurring revenue at SEK 1,722.5 million, driven by support services.

• Major cost efficiency initiatives were executed, with further measures planned to ensure a sustainable cost structure.

• Strategic acquisitions of Consular in Denmark and BlakYaks in the UK, along with the NetApp Global Partner Innovation Award, highlight ongoing business development.

Financial highlights

• System sales declined 9.8% to SEK 555 million, with lower volumes across all regions.

• Service revenue rose to SEK 528.4 million, supported by consulting and cloud services in Nordic & Baltics and UK.

• Cloud services revenue decreased by 1% to SEK 269 million, mainly due to higher customer turnover in West and Central.

• Earnings per share decreased to SEK 1.39 from SEK 1.92 year-over-year.

• Cash flow for Q3 was -SEK 122 million, with -SEK 28 million from operating activities, impacted by working capital movements and tougher payment terms.

Outlook and guidance

• Strong cloud contract order intake of SEK 248.4 million, among the highest in company history, with onboarding expected to drive future recurring revenue.

• Management expects cloud revenue growth to turn positive as new contracts are onboarded, but onboarding may take several months.

• Continued focus on cost efficiency and performance improvement, especially in West and Central.

• Market remains competitive and uncertain, with demand for secure, local, and compliant IT solutions rising.