Xplora Technologies (XPLRA) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked the first consolidated reporting under IFRS, including Doro AB, with significant one-off acquisition expenses and a transformational expansion into the senior market.

• Group revenue surged 188% year-over-year to NOK 339 million, driven by the Doro acquisition and recurring service revenue, with subscriptions up 41% to 358,000.

• Gross profit rose to NOK 191 million (+182% y/y), reported EBITDA was NOK 18 million, and adjusted EBITDA (excluding one-offs) was just under NOK 30 million.

• Cash and cash equivalents increased to NOK 545 million, up 358% year-over-year, supported by a new EUR 82 million long-term loan facility.

• The company targets 1 million subscriptions within four to five years, expanding from kids into youth and senior segments.

Financial highlights

• Group revenue: NOK 339 million (+188% y/y); gross profit: NOK 191 million (+182% y/y); EBITDA: NOK 18 million (adjusted: NOK 29 million).

• Annual recurring revenue (ARR) from services: NOK 318 million, with service gross margin steady at 80-84%.

• Cash position increased to NOK 545 million from NOK 235 million at year-end.

• Inventory reduced to NOK 77 million, reflecting improved working capital management.

• One-off costs related to the Doro acquisition totaled about NOK 50 million, impacting OpEx and financial expenses.

Outlook and guidance

• Strategic focus on growing recurring service revenue and expanding into youth and senior segments, with the first youth product and Doro SIM cards launching by end of Q2.

• Annual growth from the kids category expected to continue, with a clear path to 1 million subscriptions.

• Q2 expected to recoup Q1 sell-in volume, with growth in new markets such as Spain and Canada.