Safello Group (SFL) Q1 2025 earnings summary

Executive summary

• Net turnover rose 1% year-over-year to SEK 194.1 million, but gross profit fell 37% to SEK 8.8 million due to weak crypto markets and lower bitcoin prices.

• EBITDA dropped to SEK -3.7 million from SEK 4.7 million, reflecting higher costs for regulatory compliance and product development, including SEK 0.6 million in non-recurring consultancy fees.

• Net loss for the quarter was SEK -5.4 million, compared to a profit of SEK 4.7 million in Q1 2024; EPS was SEK -0.27 (SEK 0.23 last year).

• Active customers declined 16% year-over-year to 23,663, and orders fell 9% to 47,601, but average order values increased for both buys (+8%) and sells (+9%).

• Strategic initiatives included launching a real-time order book, expanding into ETPs with DDA, and integrating Talos for improved order execution.

Financial highlights

• Gross margin decreased to 4.5% from 7.3% year-over-year; adjusted gross profit excluding inventory changes was SEK 10.0 million (SEK 11.9 million last year).

• Operating expenses rose to SEK 12.5 million (SEK 9.4 million), driven by regulatory and development investments.

• Cash and cash equivalents at quarter-end were SEK 22.9 million, down from SEK 24.9 million at year-end 2024.

• Book value of long-term crypto assets was SEK 6.2 million, with a market value of SEK 10.5 million, reflecting an unrealized gain of SEK 4.3 million.

• Cash flow from operations was SEK -1.0 million, with total cash flow for the quarter at SEK -2.0 million.

Outlook and guidance

• Measures to reduce earnings volatility from inventory changes are expected to have a partial effect in Q2.

• The first Safello-branded ETP is expected to launch in Q2, with further expansion into decentralized AI products planned.

• Application for MiCA authorization submitted; regulatory compliance seen as a key to future growth and trust.