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Techstep ASA
Earnings Release • Aug 20, 2025
3770_rns_2025-08-20_e51fa562-734d-487c-9853-d2ff1f874d4e.pdf
Earnings Release
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Highlights Q2 2025
Improving profitability
- Recurring revenue annualised increased by 4% y/y to NOK 324m, driven by 6% growth in Own Software
- Net gross profit margin at 36%, up 4 ppt from second quarter last year
- Continued improvement in EBITA adj., up 64% y/y to NOK 4.3m
- Positive cashflow from operations of NOK 54m, an improvement of NOK 24m y/y
Strong momentum with strategic partnerships and agreements
- The agreement with Sykehuspartner HF (Helse Sør-Øst RHF) for the delivery and management of clinical devices is fully operational from Q2 2025
- Signed strategic partnership agreement with Telia in April
- Planned onboarding and rollout of services with Ireland and UK based partner Fonua in Q4 2025
Solid commercial momentum continues
- Techstep Essentials Mobile Device Management (MDM) software certified by CCN in Spain as the only MDM for Public Sector
- New exclusive agreement signed and activated with Oslo Municipality with a potential value of NOK 500 million over a four-year period.
- Extending foothold in Swedish public sector with new agreements with Borås and Norrköping Municipalities
- Secured new agreement for managed mobility with Securitas
- Entered into a comprehensive agreement with LKAB to manage its entire mobility estate
"We conclude the first half of the year with continued improvement in profitability and strong commercial momentum — two top priorities at Techstep. In the quarter, we delivered a significant increase in adjusted EBITA and operating cash flow compared to last year. Our Own Software segment continues to grow, driving annualised recurring revenue higher, albeit at a softer pace than we expected. However, with strong progress through our key strategic partners and a significant ramp-up expected in the second half of the year, we are aiming for solid growth in 2025. In the second quarter, we strengthened our market position through renewed agreements with Oslo Municipality, new public sector wins in Sweden, and major enterprise deals with Equinor, Securitas and LKAB. Our Techstep Essentials Mobile Device Management software also received CCN certification in Spain — an important step towards expanding our European presence in the MDM market. The strategic agreement with Sykehuspartner HF is now operational, with ramp-up planned for late 2025 and into 2026. These achievements reinforce our trajectory towards becoming Europe's leading mobile and circular tech company," says Morten Meier, CEO of Techstep.
About Techstep
Techstep is a mobile & circular tech company, enabling organisations to operate efficiently, securely and more sustainably by combining devices, software and expertise to meet customers' business and ESG goals. We are a leading provider of managed mobility services in Europe, serving more than 2,100 customers in Europe with an annual revenue of NOK 1.1 billion in 2024. The company is listed on the Oslo Stock Exchange under the ticker TECH. To learn more, please visit www.techstep.io.
Key Figures
| (Amounts in NOK 1 000) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | FY 2024 |
|---|---|---|---|---|---|
| Revenues | 247 230 | 266 310 | 495 974 | 522 421 | 1 072 556 |
| Recurring Revenue Annualised 1) | 324 055 | 312 959 | 324 055 | 312 959 | 330 576 |
| ARR Own Software 1) | 122 951 | 116 359 | 122 951 | 116 359 | 128 285 |
| Net gross profit 2) | 87 984 | 84 004 | 174 094 | 170 408 | 346 803 |
| Net gross profit margin 3) | 35.6% | 31.5% | 35.1% | 32.6% | 32.3% |
| EBITDA adjusted | 33 126 | 30 954 | 64 136 | 62 256 | 153 613 |
| EBITA adjusted | 4 298 | 2 623 | 6 561 | 4 208 | 39 756 |
| EBIT | -12 636 | -16 997 | -27 050 | -31 471 | -34 653 |
| Net profit (loss) for the period | -15 212 | -15 004 | -31 631 | -27 528 | -45 696 |
| EBITDA adj. margin (%) | 13.4% | 11.6% | 12.9% | 11.9% | 14.3% |
| EBITA adj. margin (%) | 1.7% | 1.0% | 1.3% | 0.8% | 3.7% |
| EBIT margin (%) | -5.1% | -6.4% | -5.5% | -6.0% | -3.2% |
| Net profit (loss) for the period (%) | -6.2% | -5.6% | -6.4% | -5.3% | -4.3% |
| Cash flow from operating activities | 53 929 | 30 450 | 55 550 | 17 002 | 136 484 |
| Cash flow from investment activities | -22 286 | -22 277 | -52 916 | -52 075 | -142 823 |
| Cash flow from financing activities | -21 902 | -119 49 | -11 113 | -26 944 | -40 288 |
| Cash | 21 604 | 15 362 | 21 604 | 15 362 | 30 776 |
| Net interest-bearing debt | 120 255 | 151 490 | 120 255 | 151 490 | 108 540 |
| Capex | -7 412 | -6 250 | -16 169 | -13 252 | -29 520 |
| Employees | 260 | 265 | 260 | 265 | 258 |
1) Annualised recurring revenues include revenues from Own Software, Device-as-a-Service and Advisory and Services. Reported annualised recurring revenues are based on contracts for 12 or more months and calculated as invoiced contractual revenues the last month times 12.
2) Net gross profit is defined as total revenue less cost of goods sold and depreciation from Device-as-a-Service.
3) Net gross profit margin is net gross profit of revenues.
Operational review
Main developments
In 2024 and continuing into 2025, Techstep has primarily focused on three elements to drive profitability: to transfer customers to a recurring revenue business model and high margin products and services; to develop the partner channel for Own Software and Managed Services; and to continue to optimise the organisation and reduce the cost base.
In the first half year of 2025, Techstep continue to deliver on these targets:
- − Recurring revenues annualised at the end of June 2025 grew by 4% year over year,
- − the strategic partnership agreements announced in 2024 and 2025 are progressing positively,
- − the profitability is improving with cost focus on operations and investments.
Total revenues in the quarter decreased with 7% year over year. This is mainly due to the decline in device sales and contracts with very low margin. However, the profitability is increasing as Techstep is tuning the commercial model. Net gross profit margin was 36% in the second quarter, and 35% in the first half year of 2025, vs. 32% and 33% respectively last year, driven by increased share of Own Software and Advisory and Services revenues, as well as increasing margins on the Devices. In addition, Techstep has increased margins on Devices as the company has focused its sales strategy on profitable contracts rather than volume-based contracts over the past year. A large unprofitable public sector framework agreement for delivery of iPads have expired and the company chose not to participate in the new tender where the potential for earnings is very low, hence revenues year over year will decline, while profitability will increase.
Over the last three years, the cost base has been considerably reduced, and total employees at the end of the quarter was 260. Total operating expenses in the first half year is in line with last year, as cost reductions are offset by inflation, salary increases and the company's investments in new ERP and commercial IT systems.
Partner Channel
The partner sales channel is an important channel for distribution of the highly scalable solutions such as Own Software and Managed Services. With new and stricter legislations and stakeholder pressure for sustainable and circular tech solutions, Techstep experiences a growing interest in its Device Lifecycle Management platform, as IT service providers are looking for more sustainable and cost-efficient ways to manage their customers' large device estates.
In April 2025, Techstep entered into a new LOI with a Telia Norge with the intention of adding Techstep services and capabilities into their customer offerings. In June, the strategic Cooperation Agreement was signed. This partnership represents access to new customer segments and expansion of existing customers, to deliver and operate some of our highly scalable solutions and services.
In Q1, Techstep announced that it has entered a letter of intent (LOI) with Fonua, a leading IT vendor with strong presence in Ireland and now entering the UK market. The current agreed timeline indicates expected onboarding and rollout of services within Q4 2025.
With this new partnership, Fonua will adopt Techstep's Lifecycle platform as their standard solution for Device Lifecycle Management, enhancing operational efficiency and customer experiences.
The previously announced partner agreements with devicenow and ICE are progressing well, and momentum are picking up, but in first half we have seen slower pace than anticipated. The technical development of the partnership continues, and the growth expectations are unchanged, although the timeline is slightly shifted.
The fastest growing software category is the Techstep Essentials Mobile Device Management (MDM) solutions. This software enables organizations to monitor, manage, and secure their employees' devices in an efficient way. Demand for MDM is being driven by multiple factors, including the current geopolitical climate, the rising need to access and process company data on the move, the growing inclusion of field and frontline workers equipped with mobile devices, and tightening regulatory requirements.
Techstep is actively recruiting new partners in several new and strategically interesting markets across Europe to strengthen the reach and local presence. Currently the largest opportunities lie in Spain, Hungary and Poland with increased momentum in other countries as well. The current pipeline represents more devices than is currently operated. In Spain alone, the addressable market represents close to a million devices, and Techstep has recently, as the only MDM provider, received security certification by CCN, the Spanish national security agency (centro criptològico nacional), a certification required to deliver solution to the Spanish municipalities and public institutions.
Direct Channel
Techstep's direct sales encompass the entire portfolio across software, hardware and services, through the direct sales teams in the Nordics and serving private enterprises and public sectors in the home markets.
In April, Techstep announced that it had entered into an extensive agreement with LKAB, one of Sweden's most historically significant industrial companies. Under the agreement, Techstep will be responsible for managing LKAB's growing mobility initiatives in a secure, efficient and sustainable manner, delivering Management Services, 3rd Party Software and support, to further accelerate their mobility journey.
In June, Techstep signed an agreement with Securitas AB for a comprehensive delivery of managed mobility. The contract entails that Techstep delivers 3rd party software, management services and support services for their entire mobile estate.
From July 1st Techstep went live with a renewed agreement with Equinor, managing and operating Equinor's mobile estate, consisting of almost 40.000 IOS devices. The agreement includes delivery of software, consulting, management and 24/7 support.
In Q2 2025, Techstep prolonged the exclusive umbrella agreement with Sykehusinnkjøp, as well as signed a new agreement with Sykehuspartner, covering the delivery and management of devices to be rolled out to hospitals in the South-East region starting in Q2. This new agreement is now fully operational and covers already several thousand devices. Up to and including Q1 2025, Techstep has been delivering services under a project agreement, covering the first hospitals in the Proof-Of-Concept period. The new agreement, which will have effect from Q2 until the end of 2025, will expand the number of devices and agreed services, and the financial implications for Techstep will be increased recurring and consulting revenues. The final comprehensive service contract covering deliveries from 2026 and onward is expected to be signed at the end of 2025. With this agreement in place, Techstep will deliver managed services to Sykehuspartner and all the hospitals in the region under a fully managed services contract, with an ambition to operate around 50.000 clinical devices within the region.
Techstep has over several years had a strong presence in the public sector in Norway and Sweden. In June, Techstep further anchored and strengthened this position, as it was awarded the new and exclusive frame agreement with the Municipality of Oslo. Techstep will deliver mobile devices, accessories and services, along with services for reuse, collection, recycle and repair, to support the municipalities' sustainability ambitions. The new agreement also includes the Municipalities of Asker and Lørenskog, as well as Sporveien and some other entities. The total contract value has a potential of up to NOK 500 million over a four-year period, with a current turnover at about NOK 300 million per four-year period.
The foothold in the public sector in Sweden has further been strengthened through newly awarded agreements with Borås municipality and Norrkõping municipality. The two agreements cover the delivery of mobile devices, accessories and services with an estimated value of up to SEK 40 million a year, and with respective 4 and 3 years agreements.
Optimising the organisation and cost base
Techstep is in a strategic transformation towards more recurring, scalable and profitable product offerings, and the past years have been marked by streamlining business operations and optimising the company's cost base, which efforts has continued into 2025. Up until recently, downscaling on personnel and cost reducing initiatives were the main focus. In 2025, Techstep is focusing on becoming more costefficient and improving use of AI and automation across our development, sales and marketing, finance and operations. Several larger projects to change and improve the internal IT architecture, ERP system and commerce platforms are among key initiatives. When finalized, these projects will contribute to substantially increased efficiency in the organization, and the subsequent retirement of legacy IT systems will further reduce the running cost base. The implementation projects are progressing according to plan, and finalization is expected in the second half of 2026.
Revenue streams
Techstep continues to focus on upselling and converting existing customers from transactional to recurring services. The goal is to increase customer value through own software and offer managed services to add further efficiency and security to customers.
Total revenues in the second quarter this year was NOK 247 million, a decrease of 7% year over year, driven by a decline in transactional device sales. However, the net gross profit in the quarter increased with 5% to NOK 88 million, as the net gross profit margin increased with 4 ppt to 36% year over year.
Net gross profit per revenue stream
Devices & Other
Revenue from Devices & Other, both transactional and as-a-service, declined by 12% y/y to NOK 163 million for the quarter. The decline in revenues is in the Norwegian market, due to an expired public sector frame agreement for delivery of Ipads. This agreement represented very low margins, and a decision was made not to participate in the tender for a new frame agreement when the existing agreement expired, in line with Techstep's strategy of focusing on higher margin contracts.
In Sweden, Device revenues increased with 12% y/y in the quarter, with an increase in margins of 6 ppt, driven by high profitability on a larger Device-as-a-Service contract expiring in the quarter. For the Swedish and Norwegian markets in total, the net gross margin was 15.9%, up from 12.6% in Q2 last year.
Advisory & Services
Revenue from Advisory & Services was NOK 53 million for the quarter, at the same level as the corresponding quarter last year, while the net gross profit for the period was NOK 34 million, a decline of NOK 4 million from last year. The gross margin decreased from 71% to 64%, driven by changes in the product mix in the quarter compared to last year, as the share of Consulting revenues declined compared to last year, while lower margin 3rd Party Software sales increased. Consulting revenues will fluctuate over time as these are non-recurring, ad-hoc revenues related to implementation projects or service and maintenance requests.
Own Software
Revenue from Own Software was NOK 31 million for the quarter, an increase of 13% y/y, driven by continued positive development in the Essentials MDM product line as well as positive one-time effects from the Lifecycle platform implemented for the Sykehuspartner agreement.
Recurring revenue
Total recurring revenue consists of contractually recurring revenue within the revenue segments Own Software, Advisory & Services and Device-as-a-Service.
Reported recurring revenue represents future contractual annual revenues. Recurring revenue from Device-as-a-Service is measured as contracts with a duration of 24 months or more, with monthly incurred revenue annualised. Annual recurring revenue from Advisory & Services is calculated as contractual monthly revenue from contracts with a duration of 12 months or more, annualised. Annual recurring revenue from Own Software is calculated as contractual monthly revenue annualised. Only contracts where invoicing to customers has commenced are included.
In Q2, recurring revenues annualised grew by 4% year over year to NOK 324 million. Contracts for Own Software increased by 6%, Advisory & Services grew with 5% and contracts for Device-as-a-service grew with 1%. There is a slight negative development in the recurring revenues since the first quarter this year, as there was some customer churn on legacy own software and service contracts, as a result of tuning the commercial strategy. There will naturally be changes in the customer base with some quarter-toquarter volatility and churn in recurring revenue contracts as Techstep shifts the commercial strategy by refocusing the product offering and expanding the number of product partners. Throughout this transition, Techstep expect some volatility as the changes take effect.
Recurring revenue - annualised
Financial review
The interim financial information has not been subject to audit. Figures in brackets refer to the corresponding quarter in 2024 for profit and loss and cash flow items, and year-end 2024 figures for balance sheet items.
Profit and loss second quarter
Techstep had total revenue of NOK 247.2 million in the second quarter of 2025, a decrease of NOK 19.1 million (-7%) from the corresponding quarter last year. The decline is caused by the expiration of a device-only frame agreement Techstep decided not to pursue renewal of. In the first quarter, despite declining revenues, the net gross profit was NOK 88.0 million, an increase of NOK 4.0 million since last year, corresponding to a net gross margin of 36%, an increase of 4 ppt from last year.
Salaries and personnel costs decreased by 1% to NOK 56.0 million in Q2 vs. same quarter last year. The decrease was due to general reduction in headcount, offset by salary adjustments. Other operational costs was NOK 24.1 million in Q2 2025, vs. NOK 21.5 million in Q2 last year. Continued cost savings initiatives drive the running cost base further down, however Techstep is currently driving two major internal system implementation projects, adding additional temporary costs to the result. The ERP and ecommerce platform projects are expected to contribute to considerable efficiency gains when finalized.
The net effect on total operating costs, including personnel costs, is an increase of 3% y/y to NOK 80.2 million.
Depreciation of tangible assets, including Device-asa-service, was NOK 28.8 million, in line with last year.
EBITA adjusted in the quarter was NOK 4.3 million, an increase of 64% from the corresponding period last year.
Amortisation in Q2 increased by 4% to NOK 17.3 million, as capitalization on development costs for the partner agreements increased towards the end of last year. Included in the total amount is amortization of purchased technology and customer contracts, with NOK 7.4 million. These assets will be fully amortized in the first half of 2026, and total amortization in the income statement will be reduced with approximately this amount per quarter from there on.
Operating loss in Q2 was NOK 12.6 million, vs. NOK 17.0 million in the same period in 2024.
Net financial items were negative at NOK 3.8 million (NOK -3.0 million) in the quarter. Financial items include interest expenses, and currency effects from the fluctuation of NOK versus EUR and SEK, in addition to changes in the fair value of the interest rate swap in the amount of NOK -0.8 million in Q2 2025 vs. NOK 0.1 million last year.
Net loss in the period was NOK 15.2 million (NOK -15.0 million).
Profit and loss first half year
Revenues in the first half year of 2025 was NOK 496.0 million, a decrease of 26.6 million year over year, while net gross profit increased with NOK 3.7 million from 2024. The change is mainly caused by the expiration of the low margin iPad agreement with Oslo Kommune, while at the same time, there has been an increase in sale of higher margin Own Software, contributing to higher profits.
Total operating costs, including personnel costs, increased with 1% to NOK 160.4 million, as reductions in number of employees is offset by higher investments in IT projects. Operating profit in the first half year was NOK -27.1 million, vs. NOK -31.5 million in the first half of last year. The reduction in loss is driven by higher net gross profits, offset by slightly higher operating costs and amortization of investments in the software platforms.
Net financial items in the first half of 2025 was NOK - 7.2 million (NOK -5.3 million), and the change is driven primarily by change in the fair value of the interest swap this year, vs. first half year last year.
Net profit for the period was NOK -31.6 million vs. NOK -27.5 million in the first half year of 2024.
Financial position
At the end of the second quarter of 2025, total assets were NOK 1 135.9 million, compared to NOK 1 177.4 million as at 31 December 2024.
Intangible assets include deferred tax assets, goodwill and customer relations and technology, and accounted for NOK 758.7 million (NOK 770.9 million). The decrease from last year is due to amortisation of customer relations and technology, both purchased and developed, and a reduction in deferred tax asset. Goodwill constitutes NOK 639.5 million of total intangible assets. Purchased technology and customer contracts amounted to NOK 14.3 million at the end of the quarter and is expected to be fully amortized during first half of 2026.
Total tangible assets were NOK 192.6 million (NOK 199.4 million), including NOK 162.0 million (NOK 167.4 million) in capitalised devices under Device-as-a-Service and NOK 30.6 million (NOK 32.0 million) in other tangible assets, which include right-of-use assets such as premises and other capitalised equipment.
Total inventories and receivables were NOK 155.6 million (NOK 176.1 million) at the end of the quarter. The decrease is primarily due to reduction in accounts
receivable of NOK 24.2 million, due to seasonal fluctuations in revenues.
Total equity at the end of Q2 2025 was NOK 548.3 million (NOK 570.6 million), corresponding to an equity ratio of 48% (48%).
Total non-current liabilities were NOK 206.0 million at the end of the quarter, vs. NOK 178.1 million at the end of 2024. The increase relates to non-current liabilities related to Device-asa-Service, offset by repayment of debt and reduction in deferred taxes. Total interest-bearing borrowings, including short term debt and drawn credit facilities, was NOK 141.9 million as per the end of June 2025, up from NOK 139.3 million at the end of 2024.
Net interest-bearing debt was NOK 120.3 million, an increase of NOK 11.7 million since the end of 2024, and an improvement of NOK 31.2 million year over year.
Total current liabilities were NOK 381.5 million (NOK 428.6 million). The decrease is primarily due to the movement in accounts payable due to seasonal effects, in addition to a reduction in the current part of liabilities related to Device-as-a-Service. This item includes buy-back obligations and deferred revenues from the Device-as-a-Service revenue segment. Other current liabilities of NOK 112.8 million (NOK 78.0 million) includes public duties and general cost accruals.
Cash flow second quarter and first half year 2025
Net cash flow from operating activities was NOK 53.9 million in the quarter (NOK 30.5 million) and NOK 55.6 million (NOK 17.0 million) in the first half year. Change in net working capital was NOK 19.5 million, vs. NOK 2.6 million in Q2 2024, and NOK -5.6 million (NOK -39.8 million) in the first half year. The improvement in working capital in 2025 is due to favourable change in product and customer mix compared to last year.
Net cash outflow from investment activities in the quarter was NOK 22.3 million (NOK 22.3 million) and NOK 52.9 million (NOK 52.1 million) in the first half year. Investment activities consist of capital expenditures for equipment related to Device-as-a-Service, net of gains from end of lease and investments in Own Software and IT. The level of investments in 2025 is in line with last year, where the majority of cash investments are in Device-as-a-Service items.
Net cash flow from financing activities was NOK -21.9 million (NOK -11.9 million) in the quarter and consists primarily of repayment of borrowings and credit facilities of NOK 14.9 million (NOK 4.5 million), interest payments of NOK 3.8 million and lease repayments of NOK 3.2. In the first half year, net proceeds and repayment of borrowings was NOK 2.2 million (NOK - 12.2 million), with interest payments of NOK 7.1 million (NOK 7.1 million).
Cash and cash equivalents increased by NOK 9.7 million (NOK -3.8 million) in the quarter, and NOK -8.5 million (NOK 62.0 million) in the first half year, to NOK 21.6 million. Techstep also has additional liquidity of NOK 35 million available through the bank facilities.
Related parties
There were no material transactions with related parties during Q2 2025.
Risk and uncertainties
Techstep's business activities entail exposure to changes in market conditions, as well as operational and financial developments. Techstep strives to take an active approach to risk management through monitoring and mitigation initiatives of identified risks, based on the ISO principles. Below is a summary of the main risks identified for Techstep in the next three to six months.
The global economic situation has faced continually increasing challenges over the past years, with slowing growth and higher inflation in Techstep's key markets. Techstep has a large base of public sector and large corporate customers, which are less vulnerable to volatile market conditions.
Mobile devices have a complex, multifaceted supply chain with increased risk of disruptions such as component shortage, various production, logistics and transportation challenges occurring along the value chain i.e. due to political or economic instability, climate change or shortage of raw materials. In case of new supply chain disruptions, Techstep may experience delays in device deliveries which may negatively impact sales of other products and solutions. Hence, Techstep continues to maintain close cooperation with key suppliers to ensure timely deliveries.
Techstep's operations, revenues and profits are dependent on its ability to generate sales through existing and new customers and strategic partnerships. Techstep operates in a competitive market segment, and the Group's success depends on its ability to meet changing customer preferences, to anticipate and respond to market and technological changes, and develop effective and collaborative relationships with its customers and partners. Techstep continues to focus on improving and scale its product offering, reducing customer implementation time, and becoming a software and solution-driven growth business, yielding higher cash flow and profit from operations, and transforming into a recurring revenue business model. The operational risk mainly relates to the ongoing turnaround and transformation process, including commercialisation of the product portfolio and keeping key personnel and necessary competence.
Techstep's liquidity risk is related to a mismatch between cash flows from operations and financial commitments. Techstep is transforming itself from a transactional business model to a software-led recurring revenue model, which leads to postponed cash inflows, negatively affecting the liquidity of the Group. Investments in simplification and standardisation of the company's product portfolio and solutions, new organisational capabilities and acquisitions and integration, have furthermore increased the company's debt over time. The Group's liquidity is closely monitored by management and the Board of Directors. If the need arises, the Group has access to multiple funding sources during the transformation process.
For more information on Techstep's risk factors and risk management, reference is made to the Board of Directors report in the Annual Report for 2024 and the investor presentation from 9 October 2024, both available from www.techstep.io/investor.
Sustainability
Techstep's mission is to make positive changes to the world of work; freeing people to work more effectively, securely and sustainably. The company's sustainability agenda is an essential part of the company's mission, underscored by its commitment to UN Global Compact and Science Based Targets.
Over the past years, Techstep has strengthened its focus on environmental, social and governance (ESG), risk and compliance, with clearer priorities and a dedicated and stronger team in place. The organisation has implemented management practices based on the ISO standard, leading to ISO 9001 (quality), 14001 (environment) and ISO 27001 (information security) certifications.
Subsequently, Techstep has further improved its EcoVadis sustainability rating performance to Goldlevel, placing Techstep among the top 5% of more than 130 000 companies evaluated globally.
More information on Techstep's sustainability efforts can be found in the company's Annual Report for 2024, available from www.techstep.io.
Outlook
Techstep serves more than 2 100 customers across industries in both the private and public sector in Europe, managing more than 3 million devices, and was highlighted as a recognised Managed Mobility service provider in Gartner's latest market guide. Techstep's goal is to become the leading mobile & circular technology company in Europe for customers that want to work smarter, securely and more sustainable.
Techstep believes that the market for mobile and circular technology solutions and services will continue to increase due to digitalisation, stricter regulation and growing complexity alongside a rapidly evolving security threat landscape. The company considers itself well positioned as enterprises and public sector organisations need help to manage their mobile device portfolio in a sustainable way and keep their mobile ecosystem up to date.
Techstep has not seen any material market impact from recent macroeconomic factors including tariff threats, and the Group does not import from or sell goods to the US, which would be affected by the proposed tariffs.
During 2023 and 2024, Techstep signed several frame agreements, letter of intents and commercial agreements with both public sector organizations and strategic partners. In 2025, additional partners are being signed, such as the UK IT vendor and the Nordic telecom operator, representing considerable growth opportunities. Going forward, profitable growth will be driven through increased margins by upselling more value-adding products and services in the Scandinavian market, as well as expanding the European reach through new and existing partner channels.
There is strong momentum across Europe on Mobile Device Management (MDM). Effects from global security threats and economic instability fuel demand, and Techstep see great interest in and potential for growth in Europe for the Techstep MDM software, partially driven by the new certification in Spain. The current pipeline represents more devices than currently operated by Techstep.
The agreement with Sykehuspartner represents an extensive opportunity to contribute to the digitalization of the Norwegian Health sector. The initial distribution of devices started in the second quarter of 2025, with an expected ramp-up towards the end of the year and into 2026.
Techstep expects a continued growth in profitability in the second half of 2025, and a further acceleration into 2026 and beyond. At the end of 2025 Techstep expects a net gross profit growth of 12-18% y/y, an EBITA adj. conversion of 13-18%, and a growth in recurring revenues annualised at the end of the year of 15-25% y/y.
Responsibility statement
Oslo, 19 August 2025
From the Board of Directors and CEO of Techstep ASA
We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2025 has been prepared in accordance with IAS 34 – Interim Financial Reporting and gives a true and fair view of the group's assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related party transactions.
| Michael Jacobs | Ingrid Leisner |
|---|---|
| Chairman | Board Member |
| Harald Arnet | Melissa Mulholland |
| Board Member | Board Member |
| Jens Rugseth | Morten Meier |
| Board Member | CEO |
Condensed Financial information
Consolidated Income statement
| Note | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | FY 2024 | |
|---|---|---|---|---|---|---|
| (Amounts in NOK 1000) | ||||||
| Revenue | 2, 3 | 246 829 | 266 260 | 495 461 | 522 083 | 1 071 092 |
| Other revenue | 401 | 51 | 513 | 338 | 1 464 | |
| Total revenues | 247 230 | 266 310 | 495 974 | 522 421 | 1 072 556 | |
| Cost of goods sold | -133 927 | -157 377 | -271 393 | -301 099 | -625 531 | |
| Salaries and personnel costs | -56 043 | -56 512 | -111 805 | -113 572 | -208 959 | |
| Other operational costs | -24 134 | -21 467 | -48 640 | -45 493 | -84 453 | |
| Depreciation | 5 | -28 828 | -28 331 | -57 575 | -58 048 | -113 857 |
| Amortisation | -17 322 | -16 679 | -34 198 | -32 879 | -68 970 | |
| Other income and expenses | 388 | -2 941 | 588 | -2 800 | -5 439 | |
| Operating profit (loss) | -12 636 | -16 997 | -27 050 | -31 471 | -34 653 | |
| Financial income | 158 | 450 | 337 | 733 | 1369 | |
| Financial expense | -3 955 | -3 455 | -7 582 | -6 063 | -171 60 | |
| Profit before taxes | -16 433 | -20 002 | -34 295 | -36 801 | -50 444 | |
| Income taxes | 1 221 | 4 998 | 2 663 | 9 273 | 4 749 | |
| Net profit (loss) for the period | -15 212 | -15 004 | -31 631 | -27 528 | -45 696 | |
| Net income attributable to | ||||||
| Shareholders of Techstep ASA | -15 212 | -15 004 | -31 631 | -27 528 | -45 696 | |
| Earnings per share in NOK: | ||||||
| Basic | -0.44 | -0.47 | -0.92 | -0.87 | -1.42 | |
| Diluted | -0.44 | -0.47 | -0.92 | -0.87 | -1.42 |
Consolidated statement of comprehensive income
| (Amounts in NOK 1 000) | Note | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | FY 2024 |
|---|---|---|---|---|---|---|
| Net profit (loss) for the period | -15 212 | -15 004 | -31 631 | -27 528 | -45 696 | |
| Items that may be reclassified to profit and loss |
||||||
| Exchange differences on translating foreign operations |
4 649 | -6 340 | 7 883 | -892 | 10 519 | |
| Income tax related to these items | - | - | - | - | - | |
| Other comprehensive income | 4 649 | -6 340 | 7 883 | -892 | 10 519 | |
| Total comprehensive income | -10 563 | -21 344 | -23 748 | -28 420 | -35 177 | |
| Total comprehensive income attributable to | ||||||
| Non-controlling interests | - | - | ||||
| Shareholders of Techstep ASA | -10 563 | -21 344 | -23 748 | -28 420 | -35 177 |
Consolidated statement of financial position
| ASSETS | Note | Q2 2025 | Q2 2024 | 2024 |
|---|---|---|---|---|
| Non-current assets | ||||
| Deferred tax asset | 11 718 | 19 837 | 14 122 | |
| Goodwill | 639 449 | 623 734 | 632 108 | |
| Customer relations and technology | 107 489 | 141 772 | 124 657 | |
| Sum intangible assets | 758 656 | 785 343 | 770 887 | |
| Assets related to Device-as-a-Service | 5 | 162 013 | 142 566 | 167 408 |
| Other tangible assets | 5 | 30 557 | 30 274 | 32 000 |
| Sum tangible assets | 192 570 | 172 840 | 199 408 | |
| Sum financial assets | 7 397 | 3 189 | 169 | |
| Total non-current assets | 958 623 | 961 371 | 970 464 | |
| Inventories | 3 301 | 7 292 | 4 663 | |
| Trade receivable | 110 587 | 125 538 | 134 745 | |
| Other receivables | 41 740 | 39 170 | 36 711 | |
| Total inventories and receivables | 155 628 | 172 000 | 176 119 | |
| Cash and cash equivalents | 6 | 21 604 | 15 362 | 30 776 |
| Total current assets | 177 231 | 187 362 | 206 895 | |
| Total assets | 1 135 855 | 1 148 733 | 1 177 360 | |
| EQUITY AND LIABILITIES | ||||
| Share capital | 4 | 34 407 | 31 629 | 34 407 |
| Other equity | 513 901 | 515 597 | 536 200 | |
| Total equity | 548 308 | 547 226 | 570 607 | |
| Deferred tax | 4 404 | 11 860 | 7 227 | |
| Non-current interest-bearing borrowings | 7 | 106 859 | 121 852 | 114 315 |
| Financial derivatives | 1 961 | 1 892 | 1 307 | |
| Non-current liabilities related to Device-as-a-Service | 68 543 | 16 905 | 39 476 | |
| Other non-current debt | 24 269 | 15 232 | 15 794 | |
| Total non-current liabilities | 206 035 | 167 741 | 178 119 | |
| Current interest-bearing borrowings | 7 | 35 000 | 45 000 | 25 000 |
| Trade payable | 145 290 | 142 954 | 175 792 | |
| Current liabilities related to Device-as-a-Service | 88 403 | 152 811 | 149 770 | |
| Other current liabilities | 112 818 | 93 001 | 78 071 | |
| Total current liabilities | 381 511 | 433 767 | 428 633 | |
| Total liabilities | 587 547 | 601 507 | 606 752 | |
| Total equity and liabilities | 1 135 855 | 1 148 733 | 1 177 360 |
Consolidated statement of changes in equity
| Other paid | Reval. | Total equity | |||
|---|---|---|---|---|---|
| (Amounts in NOK 1 000) | Share capital | in capital | Other equity | Reserve | capital |
| Equity as at start of 2024 | 31 629 | 979 246 | -437 812 | 635 | 573 697 |
| Profit for the period | - | - | -45 696 | - | -45 696 |
| Other comprehensive income | - | - | - | 10 519 | 10 519 |
| Total comprehensive income for | |||||
| the period | - | - | -45 696 | 10 519 | -35 177 |
| Transactions with owners in their | |||||
| capacity as owners: | |||||
| Proceeds from issuance of shares | |||||
| net of transaction costs | 2 778 | 25 613 | - | - | 28 391 |
| Share-based payments | - | - | 3 697 | - | 3 697 |
| Equity as at end of 2024 | 34 407 | 1 004 859 | -479 812 | 11 154 | 570 607 |
| Equity as at start of 2025 | 34 407 | 1 004 859 | -479 812 | 11 154 | 570 607 |
| Profit for the period | - | - | -31 631 | - | -31 631 |
| Other comprehensive income | - | - | - | 7 883 | 7 883 |
| Total comprehensive income for | |||||
| the period | - | - | -31 631 | 7 883 | -23 748 |
| Transactions with owners in their | |||||
| capacity as owners: | |||||
| Share-based payments | - | - | 1 449 | - | 1 449 |
| Equity as 30 June 2025 | 34 407 | 1 004 859 | -509 994 | 19 037 | 548 308 |
Consolidated statement of cash flow
| (Amounts in NOK 1000) | Note | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | FY 2024 |
|---|---|---|---|---|---|---|
| Profit before tax | -16 433 | -20 002 | -34 295 | -36 801 | -50 444 | |
| Depreciation equipment and other fixed assets | 5 | 25 977 | 25 438 | 52 050 | 51 953 | 102 430 |
| Depreciation right-of-use assets | 5 | 2 851 | 2 893 | 5 525 | 6 095 | 11 428 |
| Amortisation | 17 322 | 16 679 | 34 198 | 32 879 | 68 970 | |
| Share-based payments | 899 | 1 207 | 1 449 | 1 949 | 3 697 | |
| Financial Instruments and other | 993 | -275 | 1 010 | -1 868 | -1 376 | |
| Gain from sale of PPE reclassified to investment | -3 725 | -1 564 | -6 894 | -4 093 | -9 874 | |
| activities | ||||||
| Net exchange differences | 5 | 3 055 | 1 435 | 1 278 | 821 | -1 233 |
| Taxes paid | 0 | -961 | 0 | -961 | -961 | |
| Interest expense (revenue) reclassified to | 3 529 | 2 975 | 6 785 | 6 787 | 13 672 | |
| investing/financing activities | ||||||
| Changes in net operating working capital | 19 460 | 2 624 | -5 557 | -39 759 | 176 | |
| Net cash flow from operational activities | 53 929 | 30 450 | 55 550 | 17 002 | 136 484 | |
| Payment for acquisition of subsidiaries | -588 | -1 136 | -1 011 | -1 246 | -4 330 | |
| net of cash acquired | ||||||
| Payment for equipment and other fixed assets | 5 | -30 287 | -18 191 | -56 306 | -45 083 | -123 756 |
| Payment for intangible assets | -7 412 | -6 250 | -16 169 | -13 252 | -29 520 | |
| Proceeds from sale of property, plant and | 15 843 | 2 849 | 20 232 | 6 773 | 13 414 | |
| equipment | ||||||
| Interest received | 158 | 450 | 337 | 733 | 1 369 | |
| Net cash used on investment activities | -22 286 | -22 277 | -52 916 | -52 075 | -142 823 | |
| Proceeds from issuance of shares | 0 | 0 | 0 | 0 | 28 391 | |
| Proceeds from borrowings | 0 | 0 | 9 688 | 0 | 0 | |
| Repayment of borrowings | -14 896 | -4 497 | -7 500 | -12 153 | -40 079 | |
| Lease repayments | -3 224 | -3 560 | -6 246 | -7 270 | -13 414 | |
| Interest paid | -3 782 | -3 892 | -7 055 | -7 521 | -15 186 | |
| Net cash flow from financing activities | -21 902 | -11 949 | -11 113 | -26 944 | -40 288 | |
| Net change in cash and cash equivalents | 9 741 | -3 775 | -8 480 | -62 017 | -46 627 | |
| Cash and cash equivalents at beginning of | 11 782 | 19 587 | 30 776 | 77 459 | 77 459 | |
| period | ||||||
| Effects of exchange rate changes on cash and | 81 | -450 | -691 | -81 | -57 | |
| cash equivalents | ||||||
| Cash and cash equivalents at end of period | 6 | 21 604 | 15 362 | 21 604 | 15 361 | 30 776 |
Notes to the consolidated financial statements
Note 1. Accounting principles
Techstep (the Group) consists of Techstep ASA (the Company) and its subsidiaries. Techstep ASA is a limited liability company, incorporated in Norway. The consolidated interim financial statements consist of the Group. As a result of rounding differences, numbers or percentages may not add up to the total.
The interim consolidated financial statements are prepared under International Financial Reporting Standards (IFRS) for the periods presented. The interim financial report is presented in accordance with IAS 34 Interim Financial Reporting. The interim consolidated financial statements do not include all the information and disclosures required in the Annual Financial Statements and should be read in conjunction with the Group's Annual Financial Statements for 2024. The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's Annual Financial Statements for the year ended 31 December 2024. This report has not been audited.
Note 2. Segments
Over the last years, Techstep has been through a major transition in order to unlock profitability and growth. Historically consisting of 10 acquisitions and 47 different products, the company has transformed and streamlined the organisation and its product solutions, through mergers and disposals of products or services outside the strategic roadmap.
The Group regularly reports revenue, net gross profit and adjusted EBITA to the Board of Directors and the Groups executive management (the Group's chief operating decision makers). Currently, Techstep's product offering range from individual device needs to complete transformative solutions in three different revenue streams, and the Groups strategic goal is to grow recurring high margin and highly scalable revenue streams profitably. To measure performance against strategic goals, the key performance measure is net gross profit per product solution. As the revenue streams are generated, and the Groups resources are utilised across all legal entities and geographical markets, where it is not possible nor reasonable to allocate resources to the different revenue streams, the second key performance indicator is EBITA adjusted on a group level.
Consequently, Techstep's current segment is the Group results on a total level.
Note 3. Disaggregation of revenues
In the following tables, Total revenue and net gross profit is disaggregated by major revenue streams across the commercial markets.
| Sweden/ | |||||
|---|---|---|---|---|---|
| Q2 2025 | Norway | Denmark | Poland | Eliminations | Group |
| Revenues | |||||
| Devices | 116 088 | 48 222 | 0 | -1 685 | 162 625 |
| Advisory & Services* | 22 215 | 32 654 | 168 | -1 897 | 53 141 |
| Own Software | 12 917 | 7 073 | 11 275 | -202 | 31 063 |
| Other revenues | 4 | 516 | 0 | -120 | 401 |
| Total | 151 225 | 88 466 | 11 443 | -3 904 | 247 230 |
| Net Gross Profit | |||||
| Devices | 13 866 | 10 482 | 0 | 1 569 | 25 918 |
| Advisory & Services* | 15 553 | 18 077 | 168 | 368 | 34 167 |
| Own Software | 12 188 | 5 437 | 9 500 | 476 | 27 601 |
| Other revenues | -9 | 424 | 0 | -117 | 298 |
| Total | 41 598 | 34 420 | 9 669 | 2 296 | 87 984 |
| Sweden/ | |||||
|---|---|---|---|---|---|
| Q2 2024 | Norway | Denmark | Poland | Eliminations | Group |
| Revenues | |||||
| Devices | 143 479 | 42 944 | 0 | -843 | 185 579 |
| Advisory & Services* | 22 147 | 31 651 | 127 | -758 | 53 167 |
| Own Software | 11 162 | 7 117 | 9 425 | -191 | 27 513 |
| Other revenues | -2 | 61 | 0 | -10 | 51 |
| Total | 176 785 | 81 772 | 9 552 | -1 801 | 266 310 |
| Net Gross Profit | |||||
| Devices | 16 270 | 6 962 | 0 | 232 | 23 464 |
| Advisory & Services* | 16 215 | 20 896 | 127 | 348 | 37 587 |
| Own Software | 10 235 | 5 303 | 6 999 | 388 | 22 924 |
| Other revenues | -2 | 37 | 0 | -6 | 30 |
| Total | 42 719 | 33 198 | 7 126 | 961 | 84 004 |
| Sweden/ | |||||
|---|---|---|---|---|---|
| H1 2025 | Norway | Denmark | Poland | Eliminations | Group |
| Revenues | |||||
| Devices | 232 929 | 97 426 | 0 | -3 975 | 326 381 |
| Advisory & Services* | 41 863 | 69 813 | 427 | -4 401 | 107 702 |
| Own Software | 25 460 | 14 532 | 21 785 | -399 | 61 378 |
| Other revenues | 63 | 947 | 0 | -497 | 513 |
| Total | 300 315 | 182 719 | 22 211 | -9 271 | 495 974 |
| Net Gross Profit | |||||
|---|---|---|---|---|---|
| Devices | 28 832 | 20 165 | 0 | 2 903 | 51 900 |
| Advisory & Services* | 27 685 | 40 161 | 427 | -78 | 68 195 |
| Own Software | 23 884 | 11 092 | 17 803 | 873 | 53 653 |
| Other revenues | 51 | 788 | 0 | -493 | 346 |
| Total | 80 452 | 72 207 | 18 230 | 3 206 | 174 094 |
| Sweden/ | |||||
|---|---|---|---|---|---|
| H1 2024 | Norway | Denmark | Poland | Eliminations | Group |
| Revenues | |||||
| Devices | 268 880 | 90 177 | 0 | -883 | 358 174 |
| Advisory & Services* | 45 147 | 66 123 | 174 | -2 380 | 109 064 |
| Own Software | 22 396 | 14 288 | 18 544 | -383 | 54 845 |
| Other revenues | 158 | 200 | 0 | -21 | 338 |
| Total | 336 581 | 170 788 | 18 718 | -3 667 | 522 421 |
| Total | 85 586 | 67 785 | 14 440 | 2 597 | 170 408 |
|---|---|---|---|---|---|
| Other revenues | 158 | 115 | 0 | -16 | 257 |
| Own Software | 20 587 | 11 474 | 14 266 | 777 | 47 104 |
| Advisory & Services* | 33 481 | 39 386 | 174 | 737 | 73 778 |
| Devices | 31 360 | 16 810 | 0 | 1 099 | 49 269 |
| Net Gross Profit |
| Sweden/ | |||||
|---|---|---|---|---|---|
| FY 2024 | Norway | Denmark | Poland | Eliminations | Group |
| Revenues | |||||
| Devices | 533 203 | 215 456 | - | -1 713 | 746 947 |
| Advisory & Services* | 84 741 | 125 079 | 706 | -4 584 | 205 941 |
| Own Software | 46 363 | 29 158 | 43 454 | -771 | 118 204 |
| Other revenues | 187 | 1 049 | 278 | -50 | 1 464 |
| Total | 664 494 | 370 742 | 44 438 | -7 118 | 1 072 556 |
| Net Gross Profit | |||||
|---|---|---|---|---|---|
| Devices | 70 028 | 35 245 | - | 2 891 | 108 164 |
| Advisory & Services* | 59 193 | 73 581 | 706 | 2 155 | 135 635 |
| Own Software | 43 009 | 23 512 | 33 665 | 1 554 | 101 740 |
| Other revenues | 175 | 844 | 278 | -35 | 1 263 |
| Total | 172 405 | 133 182 | 34 649 | 6 565 | 346 803 |
*Commission and third-party software are included in Advisory & Services
Note 4. Share capital and shareholders
The company's share capital as at 30 June 2025 was NOK 34 407 158, divided into 34 407 158 ordinary shares with a par value of NOK 1.00.
Each share gives the right to one vote at the company's annual general meeting. At the time of this report, Techstep holds 192 treasury shares.
| Shareholder | # of shares | Ownership % |
|---|---|---|
| DATUM AS | 6 646 415 | 19.3 % |
| KARBON INVEST AS 1) | 5 155 546 | 15.0 % |
| VALSET INVEST AS | 4 079 353 | 11.9 % |
| AS CLIPPER | 1 160 084 | 3.4 % |
| CAMIKO AS | 1 076 824 | 3.1 % |
| Swedbank AB | 1 010 921 | 2.9 % |
| STEENCO AS | 1 000 000 | 2.9 % |
| CIPRIANO AS | 950 794 | 2.8 % |
| SPECTER INVEST AS 2) | 650 000 | 1.9 % |
| KRAG INVEST AS | 602 390 | 1.8 % |
| Saxo Bank A/S | 487 784 | 1.4 % |
| GIMLE INVEST AS | 407 096 | 1.2 % |
| TVENGE | 300 000 | 0.9 % |
| ANDRESEN | 263 191 | 0.8 % |
| NORDHOLMEN AS | 238 372 | 0.7 % |
| PIKA HOLDING AS | 214 346 | 0.6 % |
| DATUM VEKST AS | 211 246 | 0.6 % |
| ROSLAND | 210 000 | 0.6 % |
| ADRIAN AS | 203 886 | 0.6 % |
| SÆLE | 200 000 | 0.6 % |
| Total number owned by top 20 | 25 068 248 | 72.9 % |
| Total number of shares | 34 407 158 | 100 % |
1) Karbon Invest AS is owned by the Board member Jens Rugseth.
2) Specter Invest AS is owned by Board Observer Steinar Hoen.
Share option grant
At 30 June 2025, the total number of outstanding share options was 3 608 778.
On 4 April 2025, the Board of Directors of Techstep ASA resolved to grant share options in connection with the company's 2025 share option programme. A total of 1 360 000 share options has been granted, of which 970 000 to primary insiders.
For information on the share option programme for previous years please see the Remuneration report for 2024 which is available from the website www.techstep.io/investor.
| Name | Position | Shares | Share options |
|---|---|---|---|
| Morten Meier * | CEO | 50 000 | 700 000 |
| Ellen Solum | CFO | 15 402 | 550 000 |
| Claes Widestadh | Chief Operations Officer | 102 568 | 130 000 |
| Terje Bjørnsen | Chief Commercial Officer | 0 | 100 000 |
| Bartosz Leoszewski | Chief Technology Officer | 41 336 | 244 065 |
| Sheena Lim | Chief Marketing Officer | 2 134 | 244 065 |
| Suzanne Almbring | Chief People & Culture Officer | 2 394 | 80 000 |
Overview of shares and share options held by members of the management group as at 30 June 2025:
* Additionally, to directly owned shares, Mia Unhjem Meier, a close associate of Morten Meier owns 50 000 shares
Overview of shares held by members of the Board of Directors as at 30 June 2025:
| Name | Position | Shares (direct/indirect) |
|---|---|---|
| Michael Jacobs | Chairman | 50 000 |
| Ingrid Leisner** | Board member | 60 157 |
| Harald Arnet*** | Board member | 63 439 |
| Jens Rugseth* | Board member | 4 929 459 |
| Melissa Mulholland | Board member | 0 |
| Steinar Hoen**** | Board observer | 650 000 |
* Jens Rugseth holds shares through the ownership of Karbon Invest AS and Rugz AS
** Ingrid Leisner holds shares through the partial ownership of Duo Jag AS
*** Harald Arnet holds shares through partial ownership in Hermia AS
**** Steinar Hoen holds shares through the ownership of Specter Invest AS
| Right-of-use | Other fixed | Total other | ||
|---|---|---|---|---|
| (Amounts in NOK 1 000) | assets | assets | tangible assets | Equipment 1) |
| Carrying amount 1 January 2024 | 24 245 | 7 265 | 31 510 | 159 501 |
| Additions | 11 843 | 4 330 | 16 173 | 123 756 |
| Depreciation | -11 461 | -2 208 | -13 669 | -100 222 |
| Disposals | 0 | -2 329 | -2 329 | -16 618 |
| Translation differences | 210 | 105 | 315 | 991 |
| Carrying amount 31 December 2024 | 24 837 | 7 163 | 32 000 | 167 408 |
| Carrying amount 1 January 2025 | 24 837 | 7 163 | 32 000 | 167 408 |
| Additions | 3 932 | 1 625 | 5 557 | 56 306 |
| Depreciation | -5 525 | -1 563 | -7 088 | -50 487 |
| Disposals | 0 | -515 | -515 | 9 308 |
| Translation differences | 397 | 206 | 603 | -20 522 |
| Carrying amount 30 June 2025 | 23 641 | 6 915 | 30 557 | 162 011 |
Note 5. Property, plant and equipment
1) Equipment comprises mobile phones, tablets and other equipment where the Group is the lessor.
Note 6. Cash and cash equivalent
| (Amounts in NOK 1 000) | Q2 2025 | Q2 2024 | FY 2024 |
|---|---|---|---|
| Cash at bank and in hand, | 21 604 | 15 362 | 30 776 |
| Of which is restricted | 2 772 | 2 623 | 3 663 |
As at 30 June 2025 NOK 20 million of the Group's available credit facilities has been utilised.
Note 7. Borrowings
Overview of outstanding loans and credits:
| Q2 2025 | Q2 2024 | FY 2024 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (Amounts in NOK 1 000) | Current | Non current |
Total | Current | Non current |
Total | Current | Non current |
Total |
| Bank loan | 35 000 | 106 859 | 141 859 | 45 000 | 121 852 | 166 852 | 25 000 | 114 315 | 139 315 |
| Bank overdraft | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 35 000 | 106 859 | 141 859 | 45 000 | 121 852 | 166 852 | 25 000 | 114 315 | 139 315 |
The bank loan consists of a Term Loan A and Term Loan B of NOK 75 million each and a Revolving Credit Facility of NOK 30 million. The Bank overdraft is short term credit lines that consists of an overdraft facility of NOK 25 million and a seasonal facility of NOK 20 million.
The Term Loan A matures over 5 years, with quarterly straight-line amortisations, while the Term Loan B matures in 5 years.
The annual interest rates are:
| • TLA/RCF: |
NIBOR 3m + 285bps |
|---|---|
| --------------- | ------------------- |
- TLB: NIBOR 3m + 305bps
- Overdraft/seasonal: NIBOR 3m + 250bps
In connection with the refinancing, Techstep ASA entered into an interest rate hedge agreement, where interest payments for 75% of the long-term borrowings are secured at a NIBOR base of 4.47% p.a. The duration of the agreement is for 5 years.
The Group was in compliance with the loan covenant requirements as at 30 June 2025.
Sustainability Linked Loan
In July 2024, Techstep added Sustainability features to the loan terms connected to three KPIs, which may give a discount of up to 5 bps on margin if the three KPIs are reached, or penalty of up to 5 bps if the KPIs are not reached. The KPI performance, which relates to reduction of greenhouse gas emissions (scope 1 and 2), supplier due diligence and cybersecurity training, will be evaluated on an annual basis. The two latter KPIs will be replaced by new KPIs for the last two years of the loan period.
Note 8. Subsequent events
There were no material events after the balance sheet date.
Alternative performance measures
Techstep Group's financial information is prepared in accordance with International Financial Reporting Standards (IFRS). In addition, it is management's intention to provide alternative performance measures that are regularly reviewed by management to enhance the understanding of Techstep's performance, but not instead of the financial statements prepared in accordance with IFRS. The alternative performance measures presented may be determined or calculated differently by other companies. The principles for measuring the alternative performance measures are in accordance with the principles used both for segment reporting in Note 2 and internal reporting to Group Executive Management (chief operating decision makers) and are consistent with financial information used for assessing performance and allocating resources.
Gross profit
Gross profit is defined as total revenue less cost of goods sold.
Net gross profit
Net gross profit is defined as total revenue less cost of goods sold and depreciation from Device-as-a-Service.
Gross margin
Gross margin is defined as total revenue less cost of goods sold and depreciation from Device-as-a-Service, divided by total revenue.
EBITDA
Earnings before interest, tax, depreciation, amortisation and impairment. The EBITDA margin presented is defined as EBITDA divided by total revenue.
EBITDA adjusted
Earnings before interest, tax, depreciation, amortisation and impairment adjusted for transactions of a nonrecurring nature. Such non-recurring transactions include, but are not limited to restructuring costs, gains or losses related to the sale of subsidiaries, acquisition-related costs and other non-recurring income and expenses. The EBITDA adjusted margin presented is defined as EBITDA adjusted divided by total revenue.
EBITA
Earnings before interest, tax, amortisation and impairment The EBITA margin presented is defined as EBITA divided by total revenue.
EBITA adjusted
Earnings before interest, tax, amortisation and impairment adjusted for transactions of a non-recurring nature. Such non-recurring transactions include, but are not limited to restructuring costs, gains or losses related to sales of subsidiaries, acquisition-related costs and other non-recurring income and expenses. The EBITA adjusted margin presented is defined as EBITA adjusted divided by total revenue.
EBITA conversion
EBITA conversion rate is EBITA adjusted divided by net gross profit, and is a performance indicator to measure profitability vs net gross profit.
EBIT
Earnings before interest and tax (EBIT) is useful to users with regard to Techstep's financial information in evaluating operating profitability on a cost basis as well as the historic cost related to past business combinations and capex. The EBIT margin presented is defined as EBIT divided by Total revenue.
Device revenue
Device revenue is defined as revenue from sales of tangible goods and related discounts from suppliers and partners.
Device's share of revenue is the Device revenue divided by Total revenue.
Advisory & Services revenue
Revenue from Advisory & Services includes revenue from advisory, support and maintenance services, and sales of third-party software licenses including related commission.
Advisory & Services share of revenue is the revenue from Advisory & Services divided by Total revenue.
Own Software revenue
Revenue from Own Software includes revenue from the right to access and use software developed by Techstep (Own Software).
Own Software share of revenue is the revenue from Own Software divided by Total revenue.
Net interest-bearing debt (NIBD)
Net interest-bearing debt is non-current interest-bearing borrowings plus current interest-bearing borrowings less cash and cash equivalents.
Equity ratio
Equity ratio is defined as Total equity divided by Total equity and liabilities.
Capital expenditure (Capex)
Capital expenditure is the same as payment for property, plant and equipment and intangible assets.
Recurring Revenue Annualised
Reported Recurring revenue annualised represents future contractual annual revenue from Own Software, Advisory & Services and Device-as-a-Service. Revenues are based on contracts for 12 or more months and calculated as last months invoiced contractual revenues times 12 months. Contracts where invoicing to customers has not commenced at the reporting date, are not included in the calculation.
| APM's in the income statement | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | FY 2024 |
|---|---|---|---|---|---|
| Total revenue | 247 230 | 266 310 | 495 974 | 522 421 | 1 072 556 |
| Cost of goods sold | -133 927 | -157 377 | -271 393 | -301 099 | -625 531 |
| Gross profit | 113 303 | 108 933 | 224 581 | 221 322 | 447 025 |
| Gross margin | 45.8 % | 40.9 % | 45.3 % | 42.4 % | 41.7 % |
| Salaries and personnel costs | -56 043 | -56 512 | -111 805 | -113 572 | -208 959 |
| Other operational costs | -24 134 | -21 467 | -48 640 | -45 493 | -84 453 |
| Other income | 398 | 439 | 599 | 579 | 1 104 |
| Other expenses | -11 | -3 379 | -11 | -3 379 | -6 542 |
| EBITDA | 33 514 | 28 014 | 64 724 | 59 456 | 148 175 |
| Depreciation | -28 828 | -28 331 | -57 575 | -58 048 | -113 857 |
| EBITA | 4 686 | -318 | 7 149 | 1 408 | 34 318 |
| Amortisation | -17 322 | -16 679 | -34 198 | -32 879 | -68 970 |
| EBIT | -12 636 | -16 997 | -27 050 | -31 471 | -34 652 |
| Net gross profit | |||||
| Gross profit | 113 303 | 108 933 | 224 581 | 221 322 | 447 025 |
| Depr. Device-as-a-service | -25 319 | -24 929 | -50 487 | -50 914 | -100 222 |
| Net gross profit | 87 984 | 84 004 | 174 094 | 170 408 | 346 803 |
| Net gross margin | 35.6 % | 31.5 % | 35.1 % | 32.6 % | 32.3 % |
| EBITDA adjusted | |||||
| EBITDA | 33 514 | 28 014 | 64 724 | 59 456 | 148 175 |
| Other income | -398 | -439 | -599 | -579 | -1 104 |
| Other expense | 11 | 3 379 | 11 | 3 379 | 6 542 |
| Adjusted EBITDA | 33 126 | 30 954 | 64 136 | 62 256 | 153 613 |
| EBITA adjusted | |||||
| EBITA | 4 686 | -318 | 7 149 | 1 408 | 34 318 |
| Other income | -398 | -439 | -599 | -579 | -1 104 |
| Other expense | 11 | 3 379 | 11 | 3 379 | 6 542 |
| EBITA adjusted | 4 298 | 2 623 | 6 561 | 4 208 | 39 756 |
| EBITA conversion rate | |||||
| EBITA adjusted | 4 298 | 2 623 | 6 561 | 4 208 | 39 756 |
| Net gross profit | 87 984 | 84 004 | 174 094 | 170 408 | 346 803 |
| EBITA adjusted conversion rate | 4.9 % | 3.1 % | 3.8 % | 2.5 % | 11.5 % |
| APM's in the Statement of financial position | Q2 2025 | Q2 2024 | FY 2024 | ||
| NIBD | |||||
| Cash and cash equivalents | 21 604 | 15 362 | 30 776 | ||
| Non-current interest-bearing borrowings | 106 859 | 121 852 | 114 315 | ||
| Current interest-bearing borrowings | 35 000 | 45 000 | 25 000 | ||
| NIBD | 120 255 | 151 490 | 108 540 | ||
| Equity ratio | |||||
| Total equity | 548 308 | 547 226 | 570 607 | ||
| Total equity and liabilities | 1 135 855 | 1 148 733 | 1 177 360 | ||
| Equity ratio | 48.3 % | 47.6 % | 48.5 % |
Interim report Q2 and H1 2025
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