Smartoptics Group (SMOP) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of $23.2 million, up 37.7% year-over-year, and full-year revenue of $75.3 million, up 35.6% year-over-year, with strong growth across all product areas and geographies.

• Business momentum driven by large account strategy and AI-related data center interconnect demand, especially in the U.S. and Europe.

• Disciplined investments ensured OPEX grew slower than revenue, supporting profitable growth.

• Positioned as a leading challenger, outpacing competitors except in hyperscale build-outs.

• Uplisting to Euronext Oslo main board completed, increasing visibility and liquidity.

Financial highlights

• Q4 2025 revenue was $23.2 million, up 37.7% year-over-year, with full-year revenue at $75.3 million, up 35.6%.

• Q4 gross margin was 46.1% (down from 49.0% last year) due to inventory-related one-offs; full-year margin stable at 47.8%.

• Q4 EBITDA was $3.6 million (15.3% margin), up from $2.4 million; full-year EBITDA was $9.7 million (12.9% margin), with adjusted margin of 13.9% excluding uplisting costs.

• Q4 net income was $2.8 million, with basic EPS of $0.029; full-year net income was $4.7 million, with basic EPS of $0.048.

• Cash and cash equivalents at year-end were $7.3 million; operating cash flow for Q4 was $6.8 million, and for the year $8.5 million.

Outlook and guidance

• Targets 2–3x market share growth by 2030 and 13–16% EBIT margin, focusing on AI-driven capacity expansion and large account penetration.

• Expects market growth of 5–6% annually through 2030, with updated projections in H1 2026.

• Gross margin expected to remain in the 47–50% range for the foreseeable future.

• Focus remains on core markets and organic growth; M&A not a current priority.

• Plans to leverage software automation and AI for expansion in large accounts and emerging markets.