Checkin.com Group (STO:CHECK) reports that cost focus strengthens EBITDA while growth remains elusive.
The report in brief:
Q2 2025 (vs Q2 2024):
- Net revenue decreased to KSEK 18,103 (20,385) which corresponds to a growth of -11 (-3)%. At constant exchange rates, the growth was -5 (-4)%. Compared to the first quarter of 2025, the growth was -4 (-4)%.
- Gross profit for the period amounted to KSEK 12,681 (15,312) with a margin of 70 (75)%.
- EBITDA for the period amounted to KSEK 3,113 (2,661) with a margin of 17 (13)%.
- Cash flow from operating activities amounted to KSEK 1,568 (2,217).
- Net Revenue Retention LTM amounted to 82 (103)%.
- Cash and cash equivalents amounted to KSEK 19,998 (35,304).
CEO Letter from Quarterly Report
When we close the first half of 2025 with our Q2 report we can confirm that the year has continued at roughly the same revenue levels as in Q1, while our EBITDA margin has improved. Revenue for the second quarter amounted to MSEK 18.1, with an EBITDA margin of 17%. This corresponds to a YoY revenue decline of 11%. However, it's worth noting that when adjusting for the lost revenues from our former customer RingCentral, which also carried fixed personnel costs at corresponding levels, revenue grew by 6%. Q2 2024 was the final quarter with revenue contributions from RingCentral, meaning that starting next quarter, YoY comparisons will offer a more accurate picture.
Compared to Q1 2025, we saw a slight decrease in revenue. As previously communicated, Q1 saw a strong start in the newly regulated Brazilian iGaming market, driven by a surge of new user activity. It's common for newly opened markets to perform strongly initially, followed by a temporary decline in momentum, something we experienced during Q2, with reduced traffic volumes. Additionally, increased tax pressure on both operators and suppliers has led to lower operator investments, which indirectly impacts our opportunities in the region.
As part of our efforts to achieve positive cash flow, we continue to streamline our organization to improve cost control, while simultaneously working to grow revenue in a sustainable manner. The intensified cost focus initiated in Q2 is now beginning to show in the numbers. This impact will strengthen further during Q3 and reach full effect in Q4.
In my previous CEO Letter, I mentioned new revenue streams and the strong initial traction for our latest biometric login product, FaceCheckin. We continue to see strong interest, particularly within the travel and aviation industries. Our expectations remain high for securing additional revenue in the travel segment, both from existing and new customers. While procurement and contract negotiation cycles remain long, it is encouraging to observe how the industry is moving faster from a technical perspective, especially in the adoption of facial recognition and biometric technologies. This is, of course, highly favorable for Checkin.com. Our position in the industry is growing stronger through ongoing collaborations with major players like Ryanair and WestJet, and we are currently involved in multiple procurement processes with both airlines and other relevant actors in the space.
On the topic of new revenue streams, we went live during the quarter with an omnichannel launch in partnership with the Philippine-based Solaire Resort. We are seeing growing interest in our omnichannel offering, where we bridge the customer's digital and physical operations. Another large customer is expected to go live this fall.
With a market-leading platform and increasing global interest in our company, we remain focused on regaining our position as a profitable growth company. We look forward to an exciting second half of 2025.
Christian Karlsson
CEO, Checkin.com Group
The full quarterly report is now published and available on: https://group.checkin.com/investors/reports/
Webcast (Swedish)
Investors, analysts and journalists are invited to a webcast 2025-08-21 11:00 CEST where the company's CEO and CFO will present the report, followed by a Q&A session. The presentation is available through this link: https://www.finwire.tv/webcast/checkin-com/q2-2025/
An English version of the webcast will be published on the company's website later today.
For further information, please contact:
Jonas Köpniwsky, Head of Communications Checkin.com Group, press@checkin.com
This information is information that Checkin.com Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at the time stated by Checkin.com Group's news distributor Cision at the publication of this press release.
Certified Adviser
Checkin.com Group's Certified Adviser is DNB Carnegie Investment Bank AB.
About Checkin.com Group
Checkin.com Group, founded in 2017, specializes in creating secure digital environments by helping businesses establish who is on the other side of the screen. The company's advanced KYC solutions streamline user registration, identification and login processes while also ensuring that their customers meet strict regulatory standards. This is achieved through a variety of advanced technologies that in real time verify user identities, assess ages, and scan official documents with high accuracy. The software also features biometric technologies to provide an extra layer of fraud prevention while enabling seamless experiences for end-users.
By offering a smooth and secure experience for users and flexibility and customer-focus for partners, the software drives both user trust and business growth. The Group is headquartered in Stockholm, Sweden, but operates and recruits globally to attract world-leading talent.
Checkin.com Group's share is since 2021 listed on Nasdaq First North Growth Market under the trading symbol "CHECK". The company creates shareholder value and growth through organic growth and strategic acquisitions.
For more information about the company visit: https://group.checkin.com/investors/
