"We continued to increase sales bookings in Q2, marking the third consecutive quarter of growth. Sales bookings increased by 13.3% year-over-year, driven by several new ARR deals. This reflects the success of our strategy and ongoing commercial investments. However, softer ad hoc demand from non-subscribing clients, along with the effects of earlier announced low-margin contract phase-outs and extraordinary churn, temporarily weighed on the quarter's results. The new ARR, though, enhances revenue durability and predictability going forward. The cost-saving measures implemented during H1 will take full effect from Q3, supporting positive margin development in the second half of 2025. We continue to see solid and rising ARR momentum, reinforcing our confidence in the strategic direction of the business." - Anders Dahl, CEO
Q2 in summary
- Sales bookings increased 13.3% year-over-year, driven by 10.5 MSEK in ARR sales, highlighting the positive impact of our refined strategy and continued commercial investments.
- ARR reached 121.1 MSEK, reflecting an underlying yearly increase of 1.2% (or 1.4 MSEK) excluding phased-out contracts and previously announced extraordinary churn. ARR from new clients amounted to 7.0 MSEK during the quarter. 3.0 MSEK of ARR sold during the quarter has contract start dates in Q3 and is not included in the Q2 ARR base. Reported ARR decreased by 24.4% from 160.1 MSEK.
- Reported net sales (including phased-out contracts and extraordinary churn) amounted to 54.8 (70.0) MSEK, reflecting a decline of 21.7% or 21.2% organically.
- Reported subscription revenue (including phased-out contracts and extraordinary churn) declined by 17.2% to 35.5 (42.8) MSEK, ad hoc revenue from subscribers declined by 3.9% to 12.2 (12.7) MSEK, and ad hoc revenue from other clients declined by 50.6% to 7.1 (14.3) MSEK.
- Adjusted EBITDA-Capex amounted to -5.2 (5.6) MSEK with a margin of -9.5% (8.0%).
- The Swedish cost reduction initiative and the relocation of the Swedish HQ were completed, generating circa 14 MSEK of annualized savings from Q3.
H1 in summary
- Reported net sales (including phased-out contracts and extraordinary churn) decreased by 17.3%, or 16.6% organically, to 113.8 (137.5) MSEK.
- Reported subscription revenue (including phased-out contracts and extraordinary churn) declined by 15.1% to 72.1 (84.9) MSEK, ad hoc revenue from subscribers declined by 9.8% to 24.0 (26.6) MSEK, and ad hoc revenue from other clients declined by 31.3% to 17.8 (25.9) MSEK.
- Adjusted EBITDA-Capex amounted to -11.8 (6.8) MSEK with a margin of -10.4% (5.0%).
- Two cost reduction initiatives in Sweden and the UK, along with the relocation of the Swedish HQ, were completed, generating approximately 22 MSEK in annualized savings from Q3.
Events during and after the quarter ended
- It was announced that Filip Tottie steps down as CFO.
- The AGM 2025 re-elected Dan Foreman as Chairman of the Board, and Ulrich Boyer, Fredrik Lundqvist, Ashkan Senobari, Eric Gustavsson, and Ludvig Blomqvist as board members. The AGM further decided on a SEK 1.23 per share dividend.
- The company expects margin improvements in the second half of 2025, supported by higher earnings quality and predictability from sustained positive sales momentum, continued growth in ARR, and the impact of implemented cost savings. These developments provide a strong foundation for long-term value creation. The softer ad hoc market and the timing of revenue recognition may however limit the company's ability to exceed last year's 4.3% Adjusted EBITDA-Capex margin.
Financial overview
| MSEK | Q2 2025 | Q2 2024 | ? | H1 2025 | H1 2024 | ? | LTM | 2024 | ? |
| ARR | 121.1 | 160.1 | -24.4% | 121.1 | 160.1 | -24.4% | 121.1 | 161.6 | -25.1% |
| Net sales | 54.8 | 70.0 | -21.7% | 113.8 | 137.5 | -17.3% | 244.7 | 268.5 | -8.9% |
| of which subscription revenue | 35.5 | 42.8 | -17.2% | 72.1 | 84.9 | -15.1% | 153.6 | 166.5 | -7.7% |
| Gross margin | 72.7% | 76.9% | -4.2 | 74.5% | 76.0% | -1.5 | 74.2% | 75.0% | -0.8 |
| Adjusted EBITDA-Capex | -5.2 | 5.6 | -10.8 | -11.8 | 6.8 | -18.7 | -7.1 | 11.6 | -18.7 |
| Adjusted EBITDA-Capex margin | -9.5% | 8.0% | -17.5 | -10.4% | 5.0% | -15.4 | -2.9% | 4.3% | -7.2 |
| Net income | -16.0 | 1.3 | -17.2 | -30.9 | 0.7 | -31.6 | -33.3 | -1.7 | -31.6 |
| Profit margin | -29.1% | 1.8% | -30.9 | -27.1% | 0.5% | -27.7 | -13.6% | -0.6% | -13.0 |
| Net cash flow | -18.9 | -18.8 | -0.1 | -15.9 | -13.5 | -2.4 | 0.3 | 2.7 | -2.4 |
| Net financial position | 25.2 | 24.9 | 0.3 | 25.2 | 24.9 | 0.3 | 25.2 | 41.1 | -15.9 |
| Earnings per share, SEK | -2.03 | 0.16 | -2.19 | -3.93 | 0.09 | -4.02 | -4.24 | -0.22 | -4.02 |
| Average shares outstanding | 7 863 186 | 7 863 186 | 0.0% | 7 863 186 | 7 863 186 | 0.0% | 7 863 186 | 7 863 186 | 0.0% |
For more information, please contact:
Anders Dahl, CEO
+46 702 75 84 45
Email: ir@nepa.com
Financial reports
All financial reports are published on Nepa's website: http://nepa.com/investor-relations
This information is information that Nepa is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-15 08:00 CEST.
About Nepa
Nepa, a leader in Brand Experience and Marketing Optimization, helps some of the world's most reputable brands drive growth through data. This is achieved by combining first-class research, cutting-edge technology, deep expertise, and innovative solutions. Headquartered in Stockholm, Sweden, with offices in Norway, Finland, Denmark, UK, USA and India, the company is listed on the Nasdaq First North Growth Market and has been publicly traded since 2016.
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