Modulight Corporation | Company Release | August 22, 2025 at 13:00:00 EEST
This release is a summary of Modulight's half-year financial report for January-June 2025. The whole report is attached to this stock exchange release as a pdf file, and is also available on the Modulight website at https://modulight.com/reports-presentations/.
The figures in brackets refer to the corresponding period of the previous year. This half year financial report is unaudited.
Highlights in April-June 2025
- The R&D pipeline grew to 32 (30). Some of our customers advanced
- to the pilot production phase.
- Revenue was EUR 1,962 (965) thousand.
- EBITDA was EUR -43 (-1,221) thousand.
- EBITDA margin was -2.2 % (-126.5) % of revenue.
- Operating result (EBIT) was EUR -1,055 (-2,047) thousand.
- Operating result margin (EBIT-%) was -53.8 % (-212.2) % of revenue.
- Result for the reporting period was EUR -1,110 (-1,949) thousand.
- Operating cash flow was EUR -476 (-93) thousand.
- Net cash flow was EUR -2,197 (-1,891) thousand.
- Earnings per share was EUR -0.03 (-0.05).
Highlights in January-June 2025
- Revenue was EUR 3,568 (2,024) thousand.
- EBITDA was EUR -625 (-2,535) thousand.
- EBITDA margin was -17.5 % (-125.3) % of revenue.
- Operating result (EBIT) was EUR -2,640 (-4,026) thousand.
- Operating result margin (EBIT-%) was -74.0 % (-198.9) % of revenue.
- Result for the reporting period was EUR -2,726 (-3,821) thousand.
- Operating cash flow was EUR -1,808 (-1,022).
- Net cash flow was EUR -5,066 (-4,561) thousand.
- Earnings per share was EUR -0.06 (-0.09).
Key figures
| Group EUR 1,000 unless otherwise noted | 4-6/2025 | 4-6/2024 | 1-6/2025 | 1-6/2024 | 1-12/20241) |
| Revenue | 1,962 | 965 | 3,568 | 2,024 | 4,095 |
| EBITDA | -43 | -1,221 | -625 | -2,535 | -4,836 |
| EBITDA-% | -2.2% | -126.5% | -17.5% | -125.3% | -118.1% |
| Operating result (EBIT) | -1,055 | -2,047 | -2,640 | -4,026 | -8,337 |
| Operating result (EBIT) -% | -53.8% | -212.2% | -74.0% | -198.9% | -203.6% |
| Earnings for the period | -1,110 | -1,949 | -2,726 | -3,821 | -6,447 |
| Earnings per share (EPS, EUR) | -0.03 | -0.05 | -0.06 | -0.09 | -0.15 |
| Acquisition of fixed and intangible assets | -1,271 | -1,333 | -2,240 | -2,538 | -4,900 |
| Free cash flow from operating activities | -1,315 | -2,554 | -2,865 | -5,073 | -9,736 |
| Cash and cash equivalents2) | 12,317 | 20,565 | 12,317 | 20,565 | 17,407 |
| Net debt2) | -8,775 | -15,022 | -8,775 | -15,022 | -12,864 |
| Gearing ratio 2) | -18.9% | -28.9% | -18.9% | -28.9% | -26.1% |
| Equity ratio2) | 88.6% | 85.7% | 88.6% | 85.7% | 87.5% |
| Headcount (FTE) 2) | 70 | 79 | 70 | 79 | 66 |
1) Audited
2) Figure refers to the end of the review period
Outlook for 2025
Most of Modulight's customer projects are various types in the early stages of development. These projects are focused on commercializing Modulight's own products. In line with its strategy, Modulight is also transitioning from device delivery-based payments to a new treatment session-based payment model (PPT business model). The progress of individual projects is difficult to predict, and macroeconomic and geopolitical uncertainty continues to impact market development. As a result, forecasting revenue is challenging, and Modulight does not provide guidance on revenue or profitability for the year 2025.
Seppo Orsila, CEO
Revenue and profitability improved in line with our strategy. The summer has been exceptional in terms of the high number of customer visits and orders received. Progress with our existing customers and their follow-on orders formed a significant part of the orders received. We also won customers from multi-billion-euro competitors due to our superior technology. Our location in Finland also aided in securing certain major corporations as customers. Changes in the global business environment have contributed to delays, e.g., in the availability of materials, which slowed our development activities on certain products.
Revenue in the second quarter amounted to EUR 2.0 million, which was 103 % higher than in the corresponding period of 2024 and 22 % higher than in the previous quarter. Revenue was still influenced by our ongoing strategic transition to the PPT business model, along with delays caused by inconsistent quality of certain purchased materials. The U.S. tariffs have not had a significant impact on our sales, although some customers are considering future actions more cautiously now. Our exports to the U.S. have mostly remained tariff-free, but at the time of writing, recent news reports suggest potential tariffs that could significantly impact both us and our customers. Details on these potential tariffs, as well as many previously announced ones, remain insufficient for a more thorough assessment at this time. We are monitoring the situation closely, but for now we see no direct impacts beyond customers' prolonged decision-making processes and increased risk levels.
In the current global situation, having our own production facility has become an increasingly important competitive advantage. During the quarter, we secured three new highly interesting customers. All of them are significant international corporations and have ordered prototypes from us for their upcoming products. Both new and existing customers have stated that geopolitics play a key role in their decision-making. Our technology and unique manufacturing capabilities in Europe have evidently been crucial in earning customers' trust in their future product development decisions. The U.S. continues to be the company's primary market focus, and our operations there are progressing rapidly. We have continued to strengthen our local manufacturing capabilities in the U.S.
Our extensive investment program has been completed, and the associated implementation costs have decreased. This has contributed to improved profitability. We have also systematically enhanced productivity across all operations, which has also played a significant role in improving profitability and cash flow. Measured by EBITDA, profitability improved by 96 % in the second quarter, amounting to 0.0 (-1.2) million euros. Our total operating expenses have decreased 12 % compared to the reference period, even though we have continued to increase investments in product development as well as in sales and marketing activities. We will continue improving long-term operational efficiency.
Our customers are best characterized by diversity. For some, business is developing faster than ever before, while others have clearly slowed down the development and adoption of new technologies. Certain major hospitals, insurance companies, and managed care providers are now making even multi-year commitments to our PPT treatment model. On the other hand, decision-making is clearly slower with some customers, regardless of the business model. The PPT model is generating cash flow that, while modest, has become significant and is growing steadily. Some indications continued to suffer from delays caused by third parties since the winter, but we were able to increase the number of important treatment sites by the end of the quarter.
The goal of our projects is to commercialize our own products. Our product development pipeline grew to 32 projects, driven by large corporations operating in the fields of biology and semiconductor technology. These projects focus on commercializing our product platform for multiple different applications, indications, and medicines. We have increasingly focused resources on projects with existing customers as they move closer to commercialization. We initiated pilot production with some customers. Increased efficiency in product development has also been supported by the increasing possibility of leveraging the same solutions for multiple customers. Our technical team has made strong progress with improving platform solutions while also developing entirely new solutions. We are particularly pleased that the broadening of our product development pipeline in recent years has now supported growth, despite delays in certain individual projects.
We will continue focusing on growth strategy-driven actions, such as expanding our PPT model and advancing product development pipeline projects toward the commercialization of our own products. We believe that by following our growth strategy and capitalizing our strengths, our business will return to strong profitable growth during our strategy period, which extends to the end of 2025.
Financial reporting in 2025
In 2025, Modulight will publish the following financial reports:
- Interim report: January-September 2025: October 24, 2025
Webcast
Modulight's CEO Seppo Orsila will present the result in an English-language webcast, which will be held on August 22, 2025, at 2:30 p.m. EEST. The broadcast can be followed at https://modulight.zoom.us/webinar/register/WN_x4ovzX2ZRSGBiezz8n2-lg. Questions are to be submitted in writing in the webcast portal. CFO Anca Guina will also be present to answer questions. Presentation materials will be available before the start of the event on the company's website at www.modulight.com/reports-presentations/.
Contacts
CEO Seppo Orsila m. +358 40 830 4671
CFO Anca Guina m. +358 40 830 4674
IR Ulla Haapanen m. +358 40 830 4676
Email: ir@modulight.com
Modulight in brief
Modulight Corporation is a biomedical laser company that designs and manufactures products for oncology, ophthalmology and genetics. The company also provides solutions for selected high value-add applications including quantum computing and digital press. The company's products include medical devices, subsystems, software, cloud services and specialized semiconductors. Modulight's products are used worldwide by many Fortune 500 companies, pharmaceutical companies, and well-known cancer centers and universities. Modulight was founded in 2000 and is headquartered in Tampere, Finland.
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