XMReality (XMR) Q1 2025 earnings summary

Executive summary

• Achieved positive EBITDA of 465 TSEK for the first time, marking a key milestone in the company's turnaround and profitability plan for spring 2025.

• Service usage surged, with call volumes up 90% year-over-year, and several new customer contracts signed.

• Ongoing restructuring and cost reductions are expected to further support the goal of positive annual cash flow.

Financial highlights

• Net sales for Q1 2025 were 3,976 TSEK, down from 4,710 TSEK in Q1 2024.

• EBITDA improved to 465 TSEK from -2,551 TSEK year-over-year; operating result (EBIT) was -1,101 TSEK.

• Annual recurring revenue (ARR) at quarter-end was 15,251 TSEK, down from 16,426 TSEK sequentially, mainly due to currency effects and customer churn.

• Cash flow for the period was 714 TSEK, compared to -890 TSEK in Q1 2024; cash and equivalents at period-end were 1,251 TSEK.

• Gross margin remained high at 99% for the quarter.

Outlook and guidance

• Financial target to achieve positive cash flow on a rolling 12-month basis during spring 2025 remains unchanged.

• Further cost reductions are planned for Q2 2025 to support profitability.