Strong quarter with growth and improved profitability despite a hesitant market
July-September 2025
- Net sales increased during the quarter by 32,5 % to 112,4 MSEK (84,8). The organic and currency adjusted growth amounted to 0,1 %.
- Adjusted EBITDA increased during the quarter by 18,0 MSEK to 18,6 MSEK (0,6) corresponding to an adjusted EBITDA margin of 16,6 % (0,7).
- Operating profit/loss was 9,9 MSEK (-6,6), corresponding to an operating margin of 8,8 % (-7,8).
- Profit/loss for the quarter was 7,7 MSEK (-7,5).
- Result per share basic and diluted was 0,52 SEK (-0,51).
- Cash flow from operating activities for the period was 31,3 MSEK (6,4).
January-September 2025
- Net sales increased during the period by 18,4 % to 339,6 MSEK (286,7). The currency adjusted growth amounted to -5,5 %.
- Adjusted EBITDA increased during the period by 79,3 % to 38,3 MSEK (21,3), corresponding to an adjusted EBITDA margin of 11,3 % (7,4).
- Operating profit/loss was 8,3 MSEK (-5,9) which corresponds to an operating margin of 2,5 % (-2,0).
- Profit/loss for the period was 7,1 MSEK (-9,4).
- Result per share, basic and diluted was 0,49 SEK (-0,64).
- Cash flow from operating activities for the period was 42,8 MSEK (47,6).
| Amounts in TSEK | 2025 July-Sept | 2024 July-Sept | 2025 Jan-Sept | 2024 Jan-Sept | R12M Oct-Sept | 2024 Full Year |
| Net sales | 112 381 | 84 812 | 339 596 | 286 718 | 473 323 | 420 445 |
| Net sales growth, % | 32,5 | -2,4 | 18,4 | 2,6 | 14,9 | 3,9 |
| Gross margin, % | 69,6 | 66,9 | 68,6 | 67,5 | 69,0 | 68,3 |
| Adjusted gross margin, % | 69,6 | 66,9 | 68,6 | 68,5 | 69,0 | 68,9 |
| Adjusted EBITDA | 18 605 | 583 | 38 275 | 21 343 | 65 232 | 48 300 |
| Adjusted EBITDA margin, % | 16,6 | 0,7 | 11,3 | 7,4 | 13,8 | 11,5 |
| EBITDA | 18 146 | 583 | 34 116 | 18 579 | 58 467 | 42 930 |
| EBITDA margin, % | 16,1 | 0,7 | 10,0 | 6,5 | 12,4 | 10,2 |
| Equity ratio, % | 53,9 | 61,4 | 53,9 | 61,4 | 53,9 | 51,4 |
| Cash flow from operating activities, MSEK | 31,3 | 6,4 | 42,8 | 47,6 | 53,8 | 58,6 |
| Net debt/EBITDA, R12M | - | - | - | - | 1,1 | 2,4 |
| Number of employees at end of period | 150 | 122 | - | - | - | 168 |
Comments by the CEO
I am pleased to report that we are delivering a strong third quarter with growth, improved gross margins, and increased profitability. This comes despite the quarter being marked by significant global uncertainty and a cautious stance in parts of the markets in which we operate. Achieving revenues of SEK 112.4 million in a hesitant market, representing an absolute increase of 32.5 percent compared to the third quarter of 2024, demonstrates our strength. The positive outcome is partly attributable to our latest acquisition, Spanish Quercus, which is strengthening our B2B segment and thereby contributing positively to both growth and profitability.
Demand for our solutions depends on long-term investment decisions and is therefore significantly influenced by the global economic uncertainty that also characterized the third quarter. Despite this, we are reporting stable revenues with improved profitability.
A contributing factor to the positive development is that Quercus Technologies has significantly strengthened our offering within parking and access digitalization, while we have also increased the share of our sales directed towards corporate customers (B2B). This complements the Group's other business, which is predominantly focused on the public sector (B2G), and makes us somewhat less exposed to the uncertainties that often cause delays in public-sector decision-making.
During the quarter, the Group-wide efficiency program initiated in the second quarter for operations in the UK, France, and Spain was completed. The program was slightly expanded during the third quarter and will result in annual cost savings of just over SEK 12 million, with full effect from the latter part of the fourth quarter.
Our steady progress in the technology sector continues within relevant technologies for Intelligent Transport Systems (ITS), positioning us well to meet the growing demand for multi-sensor solutions. With a total of 50 development engineers, 27 of whom are focused on further advancing AI-based video solutions, we have the capacity to develop industry-leading solutions. In the third quarter, investments in product development amounted to approximately 14 percent of the Group's total revenues.
The Group's sales in the third quarter amounted to SEK 112.4 million, an increase of 32.5 percent compared with the same period in 2024. The quarter's organic revenue change, adjusted for currency effects and acquisitions, amounted to SEK 0.1 million, corresponding to an increase of 0.1 percent. The Group's total costs increased by SEK 3.5 million compared with the same period last year, which is entirely explained by the inclusion of newly acquired Quercus as of December 2024. Excluding these costs, the Group's total expenses were approximately SEK 6 million lower than in the same period last year.
Traffic Solutions ales in the third quarter amounted to SEK 97.7 million, an increase of approximately 27 percent compared with the corresponding quarter in 2024. During the quarter, Traffic Solutions accounted for 87 percent of sales, while Rail Solutions represented 13 percent.
The Group's gross margin for the quarter amounted to 69.6 (66.9) percent, with adjusted EBITDA of SEK 18.6 million, corresponding to an adjusted EBITDA margin of 16.6 percent. Cash flow from operating activities totaled SEK 31.3 million, and the Group's solvency ratio stood at 53.9 percent at the end of the period. Efforts to reduce working capital remain a key focus. Sequentially, inventory for comparable units increased by just under 3 percent, but compared with the corresponding quarter last year it decreased by just over 10 percent.
Looking ahead, I can conclude that TagMaster is well positioned to contribute to solutions addressing some of the major challenges facing global transport systems such as traffic congestion in densely populated areas, improved traffic safety, and reduced emissions from transportation. This is driving increased demand for our solutions, and we remain firmly committed to further strengthening TagMaster's position, despite the uncertainty surrounding tariffs, geopolitics, and regulations which has contributed to a cautious market sentiment.
Jonas Svensson, CEO
Auditor's review
This report has been reviewed by the company auditor.
Financial calendar
February 5, 2026: Earnings release 2025
March 27, 2026: Annual Report 2025 available on web site
April 24, 2026: Interim report first quarter 2026
April 27, 2026: Annual general meeting, Kista
July 17, 2026: Interim report second quarter 2026
October 28, 2026: Interim report third quarter 2026
February 4, 2027: Earnings release 2026
This report and previous reports and press releases are found at the company home page www.tagmaster.com.
For further information contact:
Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com
About Us
TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments - Segment Europe and Segment USA - with the trademarks TagMaster, Citilog, Quercus and Sensys Networks - with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has subsidiaries in England, France, Spain and US and exports mostly to Europe, North America, The Middle East and Asia through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA. www.tagmaster.com
This information is information that TagMaster 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 2025-10-23 08:00 CEST.