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Net Insight Interim / Quarterly Report 2025
3180_10-q_2025-04-29_c9def268-dd43-48f0-93ff-8d6b920af53f.pdf
Interim / Quarterly Report
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Interim report
January – March 2025
January – March 2025
- Net sales decreased by 19.6% to SEK 114.6 (142.5) million. Adjusted for currency effects, the decrease was 18.9%.
- EBITDA amounted to SEK 14.5 (26.4) million, corresponding to an EBITDAmargin of 12.6% (18.6%).
- EBIT amounted to SEK -9.1 (10.6) million, corresponding to an EBIT margin of -8.0% (7.4%). Adjusted for currency effects, EBIT amounted to SEK -14.6 (13.3) million.
- Net profit/loss for the period amounted to SEK -14.0 (14.2) million.
- Earnings per share diluted were SEK -0.04 (0.04).
- Total cash flow excluding stock-related transactions amounted to SEK -66.4 (-6.9) million, largely affected by extended payment terms on a number of orders.
Q1 in brief
- Growth in Americas, but increased geopolitical uncertainty and a hesitant market in EMEA and APAC
- Growing interest in solutions for unmanaged (internet and cloudbased) networks
- Strengthened media product portfolio, with several new feature launches
- Growing awareness of the need for GNSS-independent time synchronization among governments
Financial overview
| Jan-Mar | Apr 2024- | Jan-Dec | ||||
|---|---|---|---|---|---|---|
| SEK millions | 2025 | 2024 | Change | Mar 2025 | 2024 | Change |
| Net sales | 114.6 | 142.5 | -19.6% | 580.1 | 608.0 | -4.6% |
| Growth, FX adjusted | -18.9% | 12.0% | 9.1% | |||
| Gross earnings | 57.3 | 85.5 | -33.0% | 344.6 | 372.8 | -7.6% |
| Gross margin | 50.0% | 60.0% | 59.4% | 61.3% | ||
| EBITDA | 14.5 | 26.4 | -45.3% | 147.8 | 159.8 | -7.5% |
| EBITDA margin | 12.6% | 18.6% | 25.5% | 26.3% | ||
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 | -25.0% | |
| EBIT margin | -8.0% | 7.4% | 10.2% | 13.0% | ||
| Net margin | -12.2% | 9.9% | 7.4% | 11.7% | ||
| Total cash flow | -0.04 | 0.04 | 0.12 | 0.21 | ||
| Cash flow from operating activities | -38.6 | 25.4 | 64.2 | 128.2 | ||
| Cash flow excluding stock related transactions | -66.4 | -6.9 | -45.7 | 13.9 |
For definitions, see pages 16-18.
Net Insight AB (publ) org.nr. 556533–4397
CEO statement
Hesitant market – strong future prospects
At the beginning of the year, we saw growth in our focus region, Americas, while our largest market, EMEA, was subdued. We are accelerating investment in our media solutions for unmanaged networks and are seeing several international initiatives aimed at reducing reliance on GNSS/GPS‑based time synchronization.
Subdued market in EMEA and APAC, growth in the Americas
In line with previous communication, EMEA and APAC EMEA were marked by a cautious stance during the quarter. This resulted in revenue declines of 15 percent and 78 percent, respectively. By contrast, Americas grew by 46 percent year‑on‑year. Taken together, this led to a decline in operating earnings and a negative impact on cash flow. During the quarter, cash flow was also affected by extended payment terms for a number of orders.
During the quarter, we strengthened our media product portfolio with several new feature releases, and in time synchronization we see a growing demand for GNSS‑independent solutions.
Customer acquisitions provide solid growth foundation
The ongoing transition to IP and a growing market for centralized and remote production remain strong drivers of demand for our media products. Having just returned from the NAB Show in the US—one of the most significant events in the media and entertainment industry—we can confirm a high activity level and strong interest in our products, particularly an increasing interest in solutions for unmanaged networks.
However, the timing of individual business deals has become harder to predict. Live media and specifically live sport and pay-TV are resilient to economic cycles, but we are seeing a higher degree of uncertainty as a result of the current geopolitical uncertainty.
We are working systematically to strengthen and deepen relationships with our larger customers, such as Tata Communications, NEP, and Red Bee Media. In parallel, we have added 21major new customers over the past three years—including 11 in 2024—and increased the share of Group revenue generated from these new accounts from 1 percent to almost 15 percent during the same period. Continued success with existing customers, combined with a growing new‑business pipeline, provides a solid foundation for growth.
Growing awareness of GNSS independence among governments
Since the launch of our GNSS-independent time synchronization solution, Zyntai, early last year, we have delivered nearly 1,000 products to around ten customers. Our primary focus remains on 5G operators, but we are also seeing growing interest from other segments with critical network requirements.
At the telecom and technology trade show Mobile World Congress in Barcelona this March, we observed a clear increase in interest in GNSS/GPS-independent synchronization—driven by geopolitical uncertainty and growing awareness of security in 5G networks. GSMA (Global System for Mobile Communications Association) confirmed this need in a press release together with Türk Telekom. We are also seeing several international initiatives aimed at reducing dependence on GNSS/GPS. In the US, the Federal Communications Commission (FCC) has called for alternative solutions for positioning and timing. In India, stricter requirements have been proposed, and countries across Europe and Asia are also placing greater emphasis on this area.
The standardization of our time synchronization solution within the UN agency ITU is progressing according to plan and is expected to be completed by the turn of the year 2025/2026. Our assessment is that the dominant business dynamic will be ongoing order confirmations aligned with customers' time synchronization upgrades, and I continue to expect Zyntai to account for a growing share of Group revenue in the second half of the year.
Well positioned in a changing world
With a robust product portfolio and an expanding customer base Net Insight is well positioned to drive profitable growth and deliver on our long-term financial targets.
However, we see a general uncertainty in the market, where the timing of business deals in the short term has become more difficult to assess due to the geopolitical situation. Given this, we have decided to initiate a cost-saving program. In addition, we are
closely monitoring the development of the recently announced U.S. tariffs and are taking countermeasures.
I want to extend my heartfelt thanks to my colleagues for their outstanding ability to navigate an ever-changing world—an essential driver of our continued success.
Crister Fritzson, CEO Solna, Sweden, April 29, 2025
Net Insight in brief
Net Insight is a leading provider of solutions for live media transport and time synchronization in 5G networks and other critical infrastructures
Net Insight combines advanced technology with close customer relationships to deliver solutions that meet the need for reliability and precision in live media transport. The company also offers solutions for GNSS/GPS-independent time synchronization in 5G and other critical networks.
With over 25 years of experience and a proven track record in turning innovation into successful commercialization, Net Insight delivers end-to-end solutions to a global and growing customer base, with a strong focus on long-term relationships with customers and business partners.
The company's live media transport products enable high-quality, efficient, and reliable distribution—primarily of sports content—to large audiences around the world.
The network-based time synchronization solution provides costeffective and secure time synchronization for 5G and other critical networks. The solution has been developed from technology that has been part of the company's media products for over 15 years.
Business model
Net Insight focuses on long-term, sustainable growth by offering high-quality end-to-end solutions to a global and expanding customer base.
The company operates in EMEA, the Americas, and APAC, with sales conducted both directly to end customers and indirectly through business partners.
Revenue is generated through hardware sales, software licensing, as well as subscriptions and support agreements for four main
customer groups within media, as well as companies reliant on time synchronization (see "Customers" below).
Strong partnerships, long-term customer relationships, and research and development are key priorities to ensure market-leading technology solutions with high reliability and quality.
Customers
In the media sector, Net Insight serves service providers, broadcasters, production companies, and rights holders. In time synchronization, the primary customers are telecom operators and service providers of 5G networks and other critical infrastructure networks.
Strategy
Net Insight strives to deliver the highest quality and most reliable technology for live media transmission and GNSS/GPS-independent time synchronization through strong innovation capabilities.
Guided by its core values — innovation, collaboration, and trust the company's vision is to be a highly regarded partner and a global leader by 2028. Through technical expertise and close customer relationships, Net Insight works to strengthen its market position, with a primary focus on the rapidly growing sports segment within media.
Strategic initiatives include growing alongside existing customers, securing new business, increasing the share of cloud-based software revenues, and ensuring efficient scalability of operations.
Net Insight in numbers, rolling 12 months
580
Net sales, SEK million
Gross margin before amortization of capitalized development expenditure
72%
59 EBIT, SEK million
* Total development expenditures
0.12 Earnings per share, SEK (after dilution)
24% Innovation* as a percentage of net sales
156 Net cash, excluding IFRS16, SEK million
Financial information
January-March
Net sales
Net sales in the first quarter of 2025 amounted to SEK 114.6 (142.5) million, a decrease of 19.6% compared to the same quarter last year. Adjusted for currency effects, revenue decreased by 18.9%. The lower revenue is related to hesitant markets in EMEA and APAC, while Americas showed growth.
Revenue from time synchronization for 5G and other critical networks in the quarter amounted to SEK 10.7 (10.2) million, corresponding to a growth of 4.9%. Deliveries related to the agreement with Türk Telekom accounts for the majority of the revenue. The orderbook for the time synchronization offer extends several years into the future and at the end of the quarter amounted to approximately SEK 145 million. The reduction compared to the end of 2024 is mainly related to deliveries and negative exchange rate effects.
Gross profit
Gross profit for the first quarter amounted to SEK 57.3 (85.5) million, a decrease of 33.0%. The gross profit included amortization of capitalized development expenditure of SEK -18.6 (-11.7) million. Gross margin excluding and including amortization of capitalized development expenditure was 66.2% (68.3%) and 50.0% (60.0%) respectively. The lower gross profit and the lower gross margin were primarily attributable to the lower turnover.
Operating expenses
Sales and marketing expenses amounted to SEK -42.7 (-41.3) million. Administration expenses were SEK -17.8 (-17.4) million. Development expenses were SEK -11.5 (-13.5) million and development expenditures before capitalization amounted to SEK -36.1 (-42.2) million. The decrease in total development expenses is attributable to lower expenses after development in Camarillo, California, was moved to Stockholm during the first quarter of 2024.
Overall, operating expenses for the first quarter amounted to SEK -72.0 (-72.2) million, a decrease of 0.3% year-on-year. Other operating income and expenses were SEK 5.5 (-2.7) million, of which currency exchange rate differences account for SEK 5.5 (-2.7) million.
Earnings
EBIT amounted to SEK -9.1 (10.6) million, corresponding to an EBIT margin of -8.0% (7.4%). Excluding items affecting comparability of SEK 0.0 (-2.5) million and exchange rate differences of SEK 5.5 (-2.7) million, operating earnings amounted to SEK -14.6 (15.8) million, corresponding to an operating margin of -12.8% (11.1%). The lower profit is due to the lower revenue. For more information, see the table "Material profit and loss items" on page 15.
EBITDA and EBITDAC (EBITDA including reversal of capitalization of development expenditures) amounted to SEK 14.5 (26.4) million and SEK -10.2 (-2.2) million respectively, corresponding to an EBITDA margin of 12.6% (18.6%) and an EBITDAC margin of -8.9% (-1.6%). The lower EBITDA and EBITDAC margin in the quarter is mainly related to the lower revenue.
Net sales per quarter & product goup, SEKm
As a result of the increased geopolitical uncertainty, the company has decided to initiate a cost savings program. The company continuously monitor the prevailing demand situation to be able to adjust our actions if needed.
In the first quarter, net financial items amounted to SEK -5.1 (7.4) million, of which SEK -6.7 (4.6) million is related to exchange rate differences, SEK 0.2 (0.8) million is relating to the value of endowment insurance and SEK 1.4 (2.0) million to net interest income. Profit before tax amounted to SEK -14.2 (18.0) million and net income SEK -14.0 (14.2) million, corresponding to a net margin of -12.2% (9.9%).
120
Financial information
Financial position and cash flow
Cash flow
Cash flow from operating activities in the first quarter amounted to SEK -38.6 (25.4) million. The decreased cash flow from operating activities is due to the lower profit and an increase in capital tied up in working capital. The increase in capital tied up is primarily attributable to longer payment terms on a number of orders.
Cash flow from investment activities in the first quarter amounted to SEK -24.8 (-29.6) million and is primarily attributable to capitalized development expenditures.
Cash flow from financing activities in the first quarter amounted to SEK -13.3 (-11.0) million and is primarily attributable to repurchase of own shares by SEK -10.2 (-8.2) million.
The total cash flow for the first quarter amounted to SEK -76.6 (-15.1) million. Excluding the cash impact from share-related transactions (repurchase of own shares) the cash flow for the first quarter was SEK -66.4 (-6.9) million. For additional information, see pages 10 and 12.
To ensure component availability for several years to come of programmable circuits (FPGAs) whose product life cycles have been shortened, inventory levels for these circuits will temporarily increase. The purchase cost is estimated at USD 7-9 million. The purchases are financed with own cash and are expected to begin during the second quarter of 2025, with estimated final delivery at the end of 2025.
Investments
The investments in the first quarter were SEK 24.8 (29.6), of which SEK 24.7 (28.7) million were related to capitalization of expenditure for development.
Depreciation and amortization in the first quarter amounted to SEK -23.6 (-15.8) million, of which SEK -18.6 (-11.7) million related to amortization of capitalized expenditure for development.
Changes in capitalized development costs and depreciation are driven by the completion status of development projects combined with the timing of launches of fully developed products.
At the end of the quarter, net value of capitalized expenditure for development was SEK 276.8 million, compared to SEK 270.7 million per March 31, 2024.
Net cash
Cash and cash equivalents at the end of the quarter amounted to SEK 156.3 million, compared to SEK 251.7 million per March 31, 2024.
Net cash, excluding effects of IFRS16 amounted to SEK 156.3 million, compared to SEK 251.7 million per March 31, 2024.
Equity
Equity at the end of the quarter amounted to SEK 620.7 million, compared to SEK 328.8 million per March 31, 2024. The decrease in equity is primarily driven by the buyback of own shares.
Financial targets 2023-2027:
- Average annual organic Net sales growth exceeding 15 percent
- Operating margin (EBIT margin) to reach 20 percent in the same period
Equity/asset ratio
Equity/asset ratio was 78.7% compared to 73.7% per March 31, 2024.
Employees
The average number of employees and consultants in the first quarter was 209 (196), of which 177 (163) in the Parent Company Net Insight AB (publ.). The increase is primarily attributable to the investment in time synchronization.
Parent company in summary
Net sales for the parent company in the first quarter amounted to SEK 114.6 (142.5) million and net loss to SEK -14.7 (13.2) million. During the first quarter the intra-group sales were SEK 0.0 (0.0) million while intra-group purchases were SEK -19.7 (-26.8) million.
Development of the Parent Company for the year and its financial position essentially followed that of the Group as presented above (excluding intra-group transactions).
Other information
Events during the quarter
- Globecast has expanded its use of Net Insight's Nimbra technology by implementing Nimbra Edge, significantly streamlining their media transport operations while ensuring the highest quality and security.
- Facility Connect has been launched as a powerful new solution designed to connect different broadcast facilities with each other. It provides a robust, scalable and efficient way to connect different broadcast facilities.
- Net Insight has announced that NETINT Technologies video processor chip ASIC Smart VPU™ will be integrated into the next version of Nimbra Edge. This integration marks a strategic expansion of Net Insight's capabilities as it goes beyond transport to also include advanced video processing and transcoding capabilities directly within the platform.
- Riksteatern has procured Net Insight's media solution. The collaboration opens new business opportunities beyond traditional markets such as the sports industry and demonstrates the potential for revenue streams from new sectors.
- In line with Net Insight's strategic initiative to increase the share of sales of products and services for unmanaged networks, the company's products Nimbra 400 and Nimbra Edge were used at a major winter sports event in Asia in February. Nimbra Edge is designed to handle live broadcast of premium sports and enabled flexibility in creating, networking and monitoring media streams, providing a dynamic and scalable solution for this prestigious sporting event.
Events after the reporting period
No significant events occurred after the reporting period.
Risk and sensitivity analysis
Net Insight's operations and results of operations are affected by a number of external and internal factors. There is a continuous process to identify risks, and to assess how each such risk should be mitigated.
The main risks the company is primarily exposed to include marketrelated risks (including, but not limited to, competition, technological progress, and political risks), operational risks (including product liability, intellectual property, disputes, customer dependence and contract risks), as well as financial and sustainability-related risks.
International exposure
The current geopolitical uncertainty causes hesitation in the market, and timing of business deals is harder to predict. In addition to the increased geopolitical uncertainty, the announcement of increased US tariffs brings further concerns. At the time of publication of the report, Net Insight's products are exempt from the tariffs introduced in April, but this may change and affect the company's profitability through the risk of price pressure on the company's hardware sales in US (accounted to 12 percent of the Group's total Net sales in 2024). The impact of a potentially lifted exemption cannot be quantified at this time. Net Insight is taking countermeasures to mitigate the risk of increased tariffs, including a review of the value chain, and has a long-term expectation of a gradual reduction in exposure to this risk through an increased share of software sales.
In recent years, currency fluctuations have been high. The company is exposed to changes primarily in USD and EUR, where a strengthened Swedish krona negatively impacts reported revenue, partly offset by hedging.
Inventory obsolescence
The product life cycle of programmable circuits (FPGA) has been shortened, which has led to an increased need to secure supply of components. As a result, a decision was made in 2024 to temporarily increase inventory levels of these FPGAs, with purchases commencing in the second half of 2025. The consequence is an increased risk of inventory obsolescence due to incorrectly estimated future sales. The company is actively working to monitor inventory levels and sell any surplus on the spot market.
Except for this, no significant risks and uncertainties have changed compared to those described in the 2024 annual report.
The risks and uncertainties are essentially the same for the parent company and the Group as a whole.
For a comprehensive review of the company's risk and sensitivity analysis, and its risk management process, see pages 55–57, 58–59 and 73–74 of the 2024 Annual Report.
Transactions with related parties
In 2025, the parent company hired a member of the management team's related party company for consulting services. Charged fees during the year amounted to SEK 0.1 (0.0) million.
Dividend
The Board of Directors proposes that no dividend be paid for the financial year 2024.
Annual General Meeting
The Annual General Meeting will be held on May 14, at 10.00 o'clock in the office of Net Insight at Smidesvägen 7, Solna, Sweden.
This report has not been reviewed by the company's auditors.
Solna, Sweden, April 29, 2025
Crister Fritzson CEO
This information is information that Net Insight AB is obliged to make public pursuant to the EU Market Abuse Regulation. The report has been prepared in a Swedish and an English version. In case of discrepancies between the two, the Swedish version shall prevail. The information was submitted for publication, through the agency of the contact persons set out above, at 7:30 CEST on April 29, 2025.
Consolidated income statement, in summary
ta
| Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|
| SEK thousands | 2025 | 2024 | Mar 2025 | 2024 |
| Net sales | 114,573 | 142,456 | 580,128 | 608,011 |
| Cost of sales | -57,251 | -56,926 | -235,551 | -235,226 |
| Gross earnings | 57,322 | 85,530 | 344,577 | 372,785 |
| Sales and marketing expenses | -42,747 | -41,344 | -173,397 | -171,994 |
| Administration expenses | -17,751 | -17,375 | -71,916 | -71,540 |
| Development expenses | -11,455 | -13,479 | -47,542 | -49,566 |
| Other operating income and expenses | 5,485 | -2,728 | 7,389 | -824 |
| EBIT | -9,146 | 10,604 | 59,111 | 78,861 |
| Net financial items | -5,087 | 7,380 | -1,831 | 10,636 |
| Profit/loss before tax | -14,233 | 17,984 | 57,280 | 89,497 |
| Tax | 221 | -3,820 | -14,410 | -18,451 |
| Net profit/loss | -14,012 | 14,164 | 42,870 | 71,046 |
| Net profit/loss for the period attributable to the shareholders of the parent company | -14,012 | 14,164 | 42,870 | 71,046 |
| Earnings per share, based on net income attributable to the parent company's | Jan-Mar | Apr 2024- | Jan-Dec | |
|---|---|---|---|---|
| shareholders during the period | 2025 | 2024 | Mar 2025 | 2024 |
| Earnings per share | ||||
| -Basic, SEK | -0.04 | 0.04 | 0.12 | 0.21 |
| -Diluted, SEK | -0.04 | 0.04 | 0.12 | 0.20 |
| Average number of outstanding shares in thousands | ||||
| -Basic | 341,449 | 348,772 | 348,414 | 346,480 |
| -Diluted | 342,351 | 350,527 | 350,007 | 348,255 |
Consolidated statement of comprehensive income
| Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|
| SEK thousands | 2025 | 2024 | Mar 2025 | 2024 |
| Net profit/loss | -14,012 | 14,164 | 42,870 | 71,046 |
| Other comprehensive income | ||||
| Translation differences | -1,474 | 754 | -972 | 1,256 |
| Total other comprehensive income, after tax | -1,474 | 754 | -972 | 1,256 |
| Total other comprehensive income for the period | -15,486 | 14,918 | 41,898 | 72,302 |
| Total comprehensive income for the period attributable to the shareholders of the parent | ||||
| company | -15,486 | 14,918 | 41,898 | 72,302 |
Consolidated balance sheet, in summary
| SEK thousands | 31 Mar 2025 | 31 Mar 2024 | 31 Dec 2024 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Capitalized expenditure for development | 276,808 | 253,391 | 270,700 |
| Goodwill | 38,751 | 38,751 | 38,751 |
| Other intangible assets | 326 | 911 | 473 |
| Right-of-use assets | 10,903 | 22,309 | 14,466 |
| Equipment | 10,491 | 12,348 | 11,922 |
| Deferred tax asset | 3,685 | 2,897 | 3,653 |
| Deposits | 5,121 | 5,134 | 5,142 |
| Total non-current assets | 346,085 | 335,741 | 345,107 |
| Current assets | |||
| Inventories | 86,808 | 80,772 | 87,986 |
| Accounts receivable | 153,111 | 147,941 | 137,520 |
| Other receivables | 46,754 | 37,621 | 31,225 |
| Cash and cash equivalents | 156,329 | 251,651 | 232,941 |
| Total current assets | 443,002 | 517,985 | 489,672 |
| TOTAL ASSETS | 789,087 | 853,726 | 834,779 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to parent company's shareholders | |||
| Share capital | 13,930 | 14,362 | 13,930 |
| Other paid-in capital | 1,200,443 | 1,200,443 | 1,200,443 |
| Translation reserve | 792 | 1,764 | 2,266 |
| Accumulated deficit | -594,492 | -587,725 | -570,274 |
| Total shareholders' equity | 620,673 | 628,844 | 646,365 |
| Non-current liabilities | |||
| Lease liabilities | 337 | 9,557 | 1,555 |
| Other liabilities | 14,696 | 52,889 | 16,146 |
| Total non-current liabilities | 15,033 | 62,446 | 17,701 |
| Current liabilities | |||
| Lease liabilities | 9,921 | 12,077 | 11,738 |
| Accounts payable | 20,324 | 35,905 | 35,496 |
| Other liabilities | 123,136 | 114,454 | 123,479 |
| Total current liabilities | 153,381 | 162,436 | 170,713 |
| TOTAL EQUITY AND LIABILITIES | 789,087 | 853,726 | 834,779 |
Changes in consolidated equity, in summary
| SEK thousands | Attributable to parent company's shareholders | ||||||
|---|---|---|---|---|---|---|---|
| Share capital |
Other paid-in capital |
Translation reserve |
Accumulated deficit |
Total shareholders' equity |
|||
| January 1, 2024 | 14,362 | 1,200,443 | 1,010 | -593,656 | 622,159 | ||
| Repurchase of own shares | - | - | - | -8,232 | -8,232 | ||
| Total comprehensive income | - | - | 754 | 14,164 | 14,918 | ||
| March 31, 2024 | 14,362 | 1,200,443 | 1,764 | -587,725 | 628,844 | ||
| January 1, 2025 | 13,930 | 1,200,443 | 2,266 | -570,273 | 646,365 | ||
| Repurchase of own shares | - | - | - | -10,207 | -10,207 | ||
| Total comprehensive income | - | - | -1,474 | -14,012 | -15,485 | ||
| March 31, 2025 | 13,930 | 1,200,443 | 792 | -594,492 | 620,673 |
Consolidated statement of cash flows
| Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|
| SEK thousands | 2025 | 2024 | Mar 2025 | 2024 |
| Operating activities | ||||
| EBIT | -9,146 | 10,604 | 59,111 | 78,861 |
| Depreciation, amortization & impairment | 23,612 | 15,823 | 88,705 | 80,916 |
| Other items not affecting liquidity | -909 | -266 | 45 | 688 |
| Sub-total | 13,557 | 26,161 | 147,861 | 160,465 |
| Interest received | 1,625 | 2,259 | 7,609 | 8,243 |
| Interest paid | -206 | -223 | -746 | -763 |
| Other financial income and expenses | -6,506 | 5,344 | -8,695 | 3,155 |
| Income tax paid | -5,554 | -9,884 | -18,879 | -23,209 |
| Cash flow from operating activities before changes in working capital |
2,916 | 23,657 | 127,150 | 147,891 |
| Changes in working capital | ||||
| Increase-/decrease+ in inventories | 715 | 7,350 | -8,294 | -1,659 |
| Increase-/decrease+ in receivables | -31,035 | -21,242 | -16,086 | -6,293 |
| Increase+/decrease- in liabilities | -11,149 | 15,680 | -38,529 | -11,700 |
| Total changes in working capital | -41,469 | 1,788 | -62,909 | -19,652 |
| Cash flow from operating activities | -38,553 | 25,445 | 64,241 | 128,239 |
| Investment activities | ||||
| Capitalized expenditure | -24,683 | -28,672 | -94,436 | -98,425 |
| Investment in intangible assets | - | - | -3 | -3 |
| Investment in tangible assets | -129 | -907 | -4,103 | -4,881 |
| Cash flow from investment activities | -24,812 | -29,579 | -98,542 | -103,309 |
| Financing activities | ||||
| Amortization leasing | -3,067 | -2,739 | -11,358 | -11,030 |
| Repurchase of own shares | -10,207 | -8,232 | -50,071 | -48,096 |
| Cash flow from financing activities | -13,274 | -10,971 | -61,429 | -59,126 |
| Net change in cash and cash equivalents | -76,639 | -15,105 | -95,730 | -34,196 |
| Exchange differences in cash and cash equivalents | 27 | 352 | 408 | 733 |
| Cash and cash equivalents at the beginning of the period | 232,941 | 266,404 | 251,651 | 266,404 |
| Cash and cash equivalents at the end of the period | 156,329 | 251,651 | 156,329 | 232,941 |
Disaggregation of revenue
ta
| Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|
| SEK thousands | 2025 | 2024 | Mar 2025 | 2024 |
| Net sales by product group | ||||
| Hardware | 47,036 | 59,199 | 212,414 | 224,577 |
| Software | 31,213 | 48,434 | 210,172 | 227,393 |
| Support & Services | 36,324 | 34,823 | 157,542 | 156,041 |
| Total | 114,573 | 142,456 | 580,128 | 608,011 |
| Net sales by region | ||||
| EMEA | 57,898 | 67,862 | 291,924 | 301,888 |
| AM | 47,326 | 32,381 | 242,903 | 227,958 |
| APAC | 9,349 | 42,213 | 45,301 | 78,165 |
| Total | 114,573 | 142,456 | 580,128 | 608,011 |
| Timing of revenue recognition | ||||
| Products and services transferred at a point in time | 76,209 | 103,205 | 414,199 | 441,195 |
| Products and services transferred over time | 38,364 | 39,251 | 165,929 | 166,816 |
| Total | 114,573 | 142,456 | 580,128 | 608,011 |
Parent company income statement, in summary
| Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|
| SEK thousands | 2025 | 2024 | Mar 2025 | 2024 |
| Net sales | 114,573 | 142,456 | 580,128 | 608,011 |
| Cost of sales | -57,426 | -57,055 | -233,435 | -233,064 |
| Gross earnings | 57,147 | 85,401 | 346,693 | 374,947 |
| Sales and marketing expenses | -43,712 | -42,466 | -176,114 | -174,868 |
| Administration expenses | -17,734 | -17,184 | -74,161 | -73,611 |
| Development expenses | -11,683 | -14,002 | -48,013 | -50,332 |
| Other income expenses | 5,485 | -2,728 | 5,838 | -2,375 |
| EBIT | -10,497 | 9,021 | 54,243 | 73,761 |
| Net financial items | -4,890 | 7,587 | -1,159 | 11,318 |
| Profit before tax | -15,387 | 16,608 | 53,084 | 85,079 |
| Tax | 699 | -3,449 | -13,313 | -17,461 |
| Net profit/loss | -14,688 | 13,159 | 39,771 | 67,618 |
Parent company balance sheet, in summary
| SEK thousands | 31 Mar 2025 | 31 Mar 2024 | 31 Dec 2024 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Capitalized expenditure for development | 276,808 | 253,391 | 270,700 |
| Other intangible assets | 326 | 911 | 473 |
| Equipment | 10,062 | 11,233 | 11,397 |
| Participations in group companies | 3,198 | 3,173 | 3,198 |
| Deferred tax asset | 1,832 | 1,309 | 1,705 |
| Deposits | 4,855 | 4,855 | 4,855 |
| Total non-current assets | 297,081 | 274,872 | 292,328 |
| Current assets | |||
| Inventories | 86,808 | 80,772 | 87,986 |
| Accounts receivable | 153,995 | 148,745 | 138,318 |
| Receivables from group companies | 346 | 346 | 346 |
| Other receivables | 48,454 | 40,123 | 33,767 |
| Cash and cash equivalents | 147,785 | 246,042 | 221,894 |
| Total current assets | 437,388 | 516,028 | 482,311 |
| TOTAL ASSETS | 734,469 | 790,900 | 774,639 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Restricted equity | 367,415 | 344,592 | 361,282 |
| Non-restricted equity | 204,184 | 237,307 | 235,213 |
| Total equity | 571,599 | 581,899 | 596,495 |
| Non-current liabilities | |||
| Other liabilities | 12,680 | 51,436 | 14,271 |
| Total non-current liabilities | 12,680 | 51,436 | 14,271 |
| Current liabilities | |||
| Accounts payable | 20,203 | 35,798 | 35,372 |
| Liabilities to group companies | 13,244 | 14,619 | 13,279 |
| Other liabilities | 116,743 | 107,148 | 115,222 |
| Total current liabilities | 150,190 | 157,565 | 163,873 |
| TOTAL EQUITY AND LIABILITIES | 734,469 | 790,900 | 774,639 |
| 31 Mar, 2025 | 31 Dec, 2024 | |||||
|---|---|---|---|---|---|---|
| The division of shares | A-shares | B-shares | Total | A-shares | B-shares | Total |
| Outstanding shares | 1,000,000 | 339,376,009 | 340,376,009 | 1,000,000 | 341,233,009 | 342,233,009 |
| Repurchased own shares | - | 7,867,000 | 7,867,000 | - | 6,010,000 | 6,010,000 |
| Issued shares | 1,000,000 | 347,243,009 | 348,243,009 | 1,000,000 | 347,243,009 | 348,243,009 |
Financial information
| Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|
| SEK millions (if not defined differently) | 2025 | 2024 | Mar 2025 | 2024 |
| Earnings | ||||
| Net sales | 114.6 | 142.5 | 580.1 | 608.0 |
| Gross earnings | 57.3 | 85.5 | 344.6 | 372.8 |
| Operating expenses | 72.0 | 72.2 | 292.9 | 293.1 |
| Total development expenditure | 36.1 | 42.2 | 142.0 | 148.0 |
| EBITDA | 14.5 | 26.4 | 147.8 | 159.8 |
| EBITDAC | -10.2 | -2.2 | 53.4 | 61.4 |
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 |
| Profit/loss before tax | -14.2 | 18.0 | 57.3 | 89.5 |
| Net profit/loss | -14.0 | 14.2 | 42.9 | 71.0 |
| Balance sheet and cash flow | ||||
| Cash and cash equivalents | 156.3 | 251.7 | 156.3 | 232.9 |
| Working capital | 120.5 | 113.1 | 124.7 | 118.1 |
| Total cash flow | -76.6 | -15.1 | -95.7 | -34.2 |
| The share | ||||
| Dividend per share, SEK | - | - | - | - |
| Earnings per share, diluted, SEK | -0.04 | 0.04 | 0.12 | 0.20 |
| Cash flow per share, diluted, SEK | -0.22 | -0.04 | -0.27 | -0.10 |
| Average number of outstanding shares diluted, thousands | 342,351 | 350,527 | 350,007 | 348,255 |
| Number of outstanding shares at the end of the period, diluted, thousands | 340,376 | 349,998 | 340,376 | 344,038 |
| Share price at end of period, SEK | 4.63 | 5.92 | 4.63 | 7.53 |
| Employees and consultants | ||||
| Average number of employees and consultants | 209 | 196 | 202 | 200 |
| KPI | ||||
| Net sales YoY, change in % | -19.6% | 12.5% | 0.9% | 8.7% |
| Gross margin | 50.0% | 60.0% | 59.4% | 61.3% |
| Total development expenditure/Net sales | 31.5% | 29.6% | 24.5% | 24.3% |
| EBIT margin | -8.0% | 7.4% | 10.2% | 13.0% |
| EBITDA margin | 12.6% | 18.6% | 25.5% | 26.3% |
| EBITDAC margin | -8.9% | -1.6% | 9.2% | 10.1% |
| Net margin | -12.2% | 9.9% | 7.4% | 11.7% |
| Return on capital employed | 10.3% | 12.1% | 10.2% | 13.2% |
| Equity/asset ratio | 78.7% | 73.7% | 78.7% | 77.4% |
| Return on equity | 6.7% | 10.3% | 6.7% | 11.1% |
| KPI Income Statement | Jan-Mar | Apr 2024- | Jan-Dec | |
|---|---|---|---|---|
| SEK millions (if not defined differently) | 2025 | 2024 | Mar 2025 | 2024 |
| Net sales | 114.6 | 142.5 | 580.1 | 608.0 |
| Net sales YoY, change in % | -19.6% | 12.5% | 0.9% | 8.7% |
| Cost of sales ex. amortization of capitalized development | -38.7 | -45.2 | -164.5 | -171.0 |
| Gross earnings ex. amortization of capitalized development | 75.9 | 97.3 | 415.6 | 437.0 |
| Gross margin ex. amortization of capitalized development | 66.2% | 68.3% | 71.6% | 71.9% |
| Cost of sales amortization of capitalized development | -18.6 | -11.7 | -71.0 | -64.2 |
| Gross earnings | 57.3 | 85.5 | 344.6 | 372.8 |
| Gross margin | 50.0% | 60.0% | 59.4% | 61.3% |
| Sales and marketing expenses | -42.7 | -41.3 | -173.4 | -172.0 |
| Administration expenses | -17.8 | -17.4 | -71.9 | -71.5 |
| Development expenses | -11.5 | -13.5 | -47.5 | -49.6 |
| Operating expenses | -72.0 | -72.2 | -292.9 | -293.1 |
| Operating expenses/net sales | 62.8% | 50.7% | -50.5% | 48.2% |
| Other operating income and expenses | 5.5 | -2.7 | 7.4 | -0.8 |
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 |
| EBIT margin | -8.0% | 7.4% | 10.2% | 13.0% |
| Net financial items | -5.1 | 7.4 | -1.8 | 10.6 |
| Profit/loss before tax | -14.2 | 18.0 | 57.3 | 89.5 |
| Tax | 0.2 | -3.8 | -14.4 | -18.5 |
| Net profit/loss | -14.0 | 14.2 | 42.9 | 71.0 |
| Net margin | -12.2% | 9.9% | 7.4% | 11.7% |
| EBITDA margin | Jan-Mar | Apr 2024- | Jan-Dec | |
|---|---|---|---|---|
| SEK millions (if not defined differently) | 2025 | 2024 | Mar 2025 | 2024 |
| Net sales | 114.6 | 142.5 | 580.1 | 608.0 |
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 |
| Amortization of capitalized development expenditure | 18.6 | 11.7 | 71.0 | 64.2 |
| Other depreciation & amortization | 5.0 | 4.1 | 17.7 | 16.7 |
| EBITDA | 14.5 | 26.4 | 147.8 | 159.8 |
| EBITDA margin | 12.6% | 18.6% | 25.5% | 26.3% |
| Capitalization of development expenditure | -24.7 | -28.7 | -94.4 | -98.4 |
| EBITDAC | -10.2 | -2.2 | 53.4 | 61.4 |
| EBITDAC margin | -8.9% | -1.6% | 9.2% | 10.1% |
| Change in net sales in comparable currencies | Jan-Mar | Jan-Dec | |
|---|---|---|---|
| SEK millions (if not defined differently) | 2025 | 2024 | 2024 |
| Net sales | 114.6 | 142.5 | 608.0 |
| Net sales in comparable currencies | 115.6 | 141.9 | 610.1 |
| Change in net sales in comparable currencies | -18.9% | 12.0% | 9.1% |
| Development expenditure | Jan-Mar | Apr 2024- | Jan-Dec | |
|---|---|---|---|---|
| SEK millions (if not defined differently) | 2025 | 2024 | Mar 2025 | 2024 |
| Development expenses | 11.5 | 13.5 | 47.5 | 49.6 |
| Capitalization of development expenditure | 24.7 | 28.7 | 94.4 | 98.4 |
| Total development expenditure | 36.1 | 42.2 | 142.0 | 148.0 |
| Capitalization rate | 68.3% | 68.0% | 66.5% | 66.5% |
| Net Sales | 114.6 | 142.5 | 580.1 | 608.0 |
| Total development expenditure/net sales | 31.5% | 29.6% | 24.5% | 24.3% |
Material profit and loss items
ta
The Group has identified a number of items which are material due to the significance of their nature and/or amount. These are listed separately here to provide a better understanding of the financial performance of the Group:
| Material profit and loss items | Jan-Mar | Apr 2024- | Jan-Dec | ||
|---|---|---|---|---|---|
| SEK millions | Note | 2025 | 2024 | Mar 2025 | 2024 |
| Exchange rate differences | |||||
| Part of Other operating income & expenses | 5.5 | -2.7 | 7.4 | -0.8 | |
| Part of Net Financial Items | -6.7 | 4.6 | -9.5 | 1.8 | |
| Total Exchange rate differences | -1.2 | 1.9 | -2.2 | 0.9 | |
| Items affecting comparability | |||||
| Restructuring | (a) | - | -2.5 | - | -2.5 |
| Total | - | -2.5 | - | -2.5 | |
| EBIT excluding items affecting comparability | |||||
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 | |
| Items affecting comparability, as per above | - | 2.5 | - | 2.5 | |
| Total | -9.1 | 13.1 | 59.1 | 81.3 | |
| EBIT excluding exchange rate differences | |||||
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 | |
| Exchange rate differences, as per above | -5.5 | 2.7 | -7.4 | 0.8 | |
| Total | -14.6 | 13.3 | 51.7 | 79.7 | |
| EBIT excluding exchange rate differences & items affecting comparability | |||||
| EBIT | -9.1 | 10.6 | 59.1 | 78.9 | |
| Exchange rate differences, as per above | -5.5 | 2.7 | -7.4 | 0.8 | |
| Items affecting comparability, as per above | - | 2.5 | - | 2.5 | |
| Total | -14.6 | 15.8 | 51.7 | 82.2 | |
| Cash flow excluding share-base transactions | (b) | ||||
| Net change in cash and cash equivalents | -76.6 | -15.1 | -95.7 | -34.2 | |
| Repurchase of own shares | 10.2 | 8.2 | 50.1 | 48.1 | |
| Total | -66.4 | -6.9 | -45.7 | 13.9 |
All items in the table above effects operating earnings, except for (b) that affects cash flow.
(a) Severance pay in due to structural changes.
(b) Presenting the cash flow without effects from the repurchase program of own shares and exercised warrants provides a better understanding and comparison of the underlying operations' cash flow.
Financial definitions
Alternative performance measures and other definitions
Non-IFRS financial measures are presented to enhance investors and management possibility to evaluate the ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of results between periods. The APMs in this report may differ from similar-titled measures used by other companies. The section has also been supplemented with some other definitions.
Any key figures in text, diagrams or tables that include periods earlier than 1 April 2021, refer to continued operations, i.e. excluding the effect from divested operations. For more information, see interim reports and the 2024 annual report.
| Performance measures | Various types of performance measures and margin measures as a percentage of sales. | |||
|---|---|---|---|---|
| Non-IFRS performance measures |
Description | Reason for the use of the measure | ||
| Gross margin | Gross earnings as a percentage of net sales. | The gross margin is of major importance, showing the | ||
| Gross margin excl. amortization of capitalized development |
Gross earnings excl. amortization of capitalized development as a percentage of net sales. |
margin for covering the operating expenses, supplemented by the margin to cover the operating expenses as well as the cost of amortization of capitalized development expenditures. |
||
| Operating expenses | Sales and marketing expenses, administration expenses and development expenses. |
Shows the company's total operating expenses. Putting them in relation to net sales shows the company's cost efficiency. |
||
| Operating expenses/ net sales |
Operating expenses as a percentage of net sales. | |||
| Operating earnings (EBIT) | Calculated as operating earnings before financial items and tax. |
Operating earnings provides an overall picture of earnings generated in the operating activities. |
||
| Operating margin (EBIT%) | Operating earnings as a percentage of net sales. | The operating margin is a key measure together with sales growth and capital employed for monitoring value creation. |
||
| Net sales YoY, change in % | The relation between net sales for the period and the corresponding sales for the comparative period in the previous year. |
The sales growth is a key measure together with operating margin and capital employed for monitoring value creation. |
||
| Change in Net sales in comparable currencies |
The relation between the net sales for the period, recalculated using the foreign currency exchange rates from the comparative period, and the corresponding sales for the comparative period in the previous year. Only sales from business combinations that have been part of the Group for the whole comparative period are recalculated. |
This measure is of major importance for management in its monitoring of the underlying sales growth driven by changes in volume, price and product mix for comparable exchange rates between different periods. |
||
| Net margin | Net Income as a percentage of net sales. | The net margin shows the remaining share of net sales after all the company's costs have been deducted. |
||
| Total development (R&D) expenditure |
Development expenses and capitalized expenditures for development. |
The measure is a good complement to development expenses, as it shows the company's total |
||
| Capitalization rate | Capitalized development expenditures as a percentage of total development expenditures. |
development expenditures. The development expenditures effect on income, financial position, and presentation in the statement of |
||
| Total development (R&D) expenditure/net sales |
Total development expenditure as percentage of net sales. |
cash flow is affected by the periods level of capitalized development expenditures. |
||
| Regions | Definition of regions for designation of revenue: | Definition of regions for designation of revenue. |
Calculation of performance measures not included in IFRS framework, and some other definitions.
Financial definitions
| Performance measures | Various types of performance measures and margin measures as a percentage of sales. | |
|---|---|---|
| Non-IFRS performance measures |
Description | Reason for the use of the measure |
| • EMEA – Europe, the Middle East and Africa • Americas (AM) - North and South America • APAC – Asia and Pacific |
||
| Working capital | Current assets minus cash and cash equivalents, accounts payable and other interest-free current liabilities. The Company has no interest-bearing liabilities, excluding lease liabilities. Changes in working capital in the cash flow statement also includes adjustments for items not affecting liquidity and changes in non-current operating assets and liabilities. |
This measure shows how much working capital is tied up in the operations and can be put in relation to sales to understand how effectively tied up working capital is used. |
| Capital employed | The Company capital employed is calculated as an average of total assets, less total liabilities, excluding interest-bearing liabilities. The Company has no interest-bearing liabilities, excluding lease liabilities. |
Return on capital employed is the central ratio for measuring the return on the capital tied up in operations. |
| Return on capital employed | Operating earnings plus interest income, in relation to average capital employed, rolling four quarters (R4Q). |
|
| Equity/asset ratio | Shareholders' equity divided by the balance sheet total. |
A traditional measure for showing financial risk, expressing the ratio of the assets that are financed by the owners. |
| Return on equity | Net income as a percentage of average shareholders' equity, rolling four quarters (R4Q). |
Return on equity shows the total return on shareholders' capital and reflects the effect of the company's profitability as well as the financial leverage. The measure is primarily used to analyze owner profitability over time. |
| Investments | Investments in intangible and tangible assets. | Definitions to rows in the cash flow statement. |
| Total cash flow/cash flow | Change in cash and cash equivalents during the period, excluding exchange differences in cash and cash equivalents. |
|
| Shareholders' information Measures related to the share |
||
| Non-IFRS performance measure |
Description | Reason for the use of the measure |
| Average number of outstanding shares |
Total number of shares in the Parent company, less the number of group companies' holdings of shares in the Parent company (own/treasury shares). |
Definitions of IFRS performance measures. Measures showing the return of the business to the owners, per share. |
Dividend per share Dividend divided by the average number of outstanding shares during the period.
outstanding shares during the period.
Earnings per share (EPS) Net income divided by the average number of
Financial definitions
| Shareholders' information | Measures related to the share | |
|---|---|---|
| Non-IFRS performance measure |
Description | Reason for the use of the measure |
| Cash flow per share | Total cash flow, divided by average number of outstanding shares during the period. |
Measures showing the return of the business to the owners, per share. |
| Equity per share | Shareholders' equity divided by number of outstanding shares at the end of the period. |
|
| Employees | Measures related to employees | |
| Non-IFRS performance measure |
Description | Reason for the use of the measure |
| Average number of employees and consultants/co-workers |
The average number of employees and consultants for non-temporary positions (longer than nine months) and who do not replace absent employees, in FTE (Full time equivalent). |
To supplement the number of employees with consultants gives a better measure of the Company's cost. |
Financial calendar
Annual General Meeting 14 May 2025 Interim report Q2 2025 18 July 2025 Interim report Q3 2025 6 November 2025 Year-end report Q4 2025 11 February 2026
Invitation to presentation
On 29 April 2025 at 09:00 CEST, CEO Crister Fritzson together with CFO Cecilia Höjgård Höök will present the quarterly report in a live‑streamed web conference.
Link to the live presentation, which will also be available for replay: Net Insight Q1 25
For further information
Crister Fritzson, CEO, Net Insight AB (publ) Net Insight AB (publ), corp.id.no 556533-4397
Telephone: +46 (0)8-685 04 00 Box 1200, 171 23 Solna
E-mail: [email protected] Telephone: +46 (0)8 – 685 04 00
Linda Lyth, Investor Relations Manager, Net Insight AB (publ) Telephone: +46 (0) 767 68 13 37
E-mail: [email protected]
Net Insight AB (publ) Telephone: +46 (0)8 685 04 00, [email protected], www.netinsight.net