Financial summary July-September 2025
- Profoto announces its third quarter results in accordance with preliminary figures published on October 14, 2025.
- Net sales totaled SEK 119m (164), down 27.5 percent. Organic growth totaled -22.6 percent, and the currency effect, -4.9 percent.
- EBIT totaled SEK -57m (39), and the EBIT margin, -47.9 percent (23.9).
- Adjusted EBIT totaled SEK -10m (30), and the adjusted EBIT margin, -8.4 percent (18.4). Adjustments for the period related to impairment of intangible assets of SEK -41m and nonrecurring restructuring costs of SEK -6m.
- Profit for the period totaled SEK -48m (28).
- The adjusted return on operating capital totaled 14.0 percent (30.5).
- Cash flow from operating activities was SEK 35m (14).
- Earnings per share (basic and diluted) totaled SEK -1.19 (0.70).
Financial summary January-September 2025
- Net sales totaled SEK 454m (530), a decrease of 14.4 percent. Organic growth totaled -10.5 percent, and the currency effect, -3.9 percent.
- EBIT amounted to SEK -22m (110), and the EBIT margin, -4.9 percent (20.7).
- Adjusted EBIT totaled SEK 25m (101), and the adjusted EBIT margin totaled 5.5 percent (19.0). Adjustments for the period related to impairment of intangible assets of SEK -41m and nonrecurring restructuring costs of SEK -6m.
- Profit for the period totaled SEK -30m (83).
- Cash flow from operating activities was SEK 113m (60).
- Earnings per share (basic and diluted) totaled SEK -0.76 (2.07).
| Jul-Sep 2025 | Jul-Sep 2024 | Jan-Sep 2025 | Jan-Sep 2024 | Oct 2024-Sep 2025 | Full year 2024 | |
| Net sales, SEKm | 119 | 164 | 454 | 530 | 654 | 731 |
| Organic growth, % | -22,6 | -1,1 | -10,5 | -7,7 | -8,7 | -6,5 |
| EBITA, SEKm | -2 | 48 | 54 | 137 | 121 | 204 |
| EBITA margin, % | -1.9 | 29.0 | 11.9 | 25.9 | 18.5 | 27.9 |
| EBIT, SEKm | -57 | 39 | -22 | 110 | 35 | 167 |
| EBIT margin, % | -47.9 | 23.9 | -4.9 | 20.7 | 5.4 | 22.9 |
| Adjusted EBIT, SEKm | -10 | 30 | 25 | 101 | 77 | 153 |
| Adjusted EBIT margin, % | -8.4 | 18.4 | 5.5 | 19.0 | 11.8 | 20.9 |
| Profit/loss for the period, SEKm | -48 | 28 | -30 | 83 | 13 | 126 |
| Cash flow from operating activities, SEKm | 35 | 14 | 113 | 60 | 150 | 97 |
| Net debt, SEKm | 208 | 219 | 208 | 219 | 208 | 235 |
| Net debt/EBITDA LTM | 1.45 | 0.98 | 1.45 | 0.98 | 1.45 | 1.04 |
| Return on capital employed, % | 5.9 | 29.6 | 5.9 | 29.6 | 5.9 | 28.7 |
| Adjusted return on operating capital, % | 14.0 | 30.5 | 14.0 | 30.5 | 14.0 | 29.2 |
| Earnings per share, SEK | -1.19 | 0.70 | -0.76 | 2.07 | 0.33 | 3.15 |
CEO comment
Quarter marked by weak demand in the US and EMEA
Net sales in the third quarter totaled SEK 119m (164), representing a decrease of 27.5 percent. Organic growth totaled -22.6 percent, and the currency effect, -4.9 percent. Adjusted EBIT totaled SEK -10m (30), and the adjusted EBIT margin, -8.4 percent (18.4). Adjustments for the quarter totaled SEK 47m (-9), comprising an impairment of intangible assets of SEK 41m and restructuring costs of SEK 6m related to implemented efficiency measures. EBIT totaled SEK -57m (39). The result for the quarter was affected by the negative sales trend, higher cost of goods due to tariffs, and a shift in the balance between capitalized work for own account and depreciation compared to previous quarters. This is a result of a change in the captalization rate in R&D and the initiation of depreciation on products launched during the year.
Weak demand in US and EMEA - APAC in contrast
Demand in the US was weak during the quarter, partly due to earlier inventory build-up at the company's retailers ahead of tariff changes, and strong sales of new products in the second quarter. Also in EMEA, inventory build-up at retailers of newly launched products from the previous quarter has had an impact, combined with a continued uncertain macro outlook which has contributed to restraint among retailers and end customers. APAC, on the other hand, showed positive development, driven by a number of major customer deliveries.
Measures to meet new conditions
Previously communicated cost savings are being implemented as planned. In total, the company will reduce its cost base by SEK 80m to approximately SEK 320m, corresponding to 20 percent, with full effect at the end of the current year. This entails a structural adjustment to current market conditions. Profoto maintains a cost focus to strengthen the long-term margin profile, while focusing on product development, customers, and delivery to create value in the core business. During the quarter, restructuring work was also carried out in the Dutch subsidiary StyleShoots, acquired in 2022. In connection with this work, restructuring costs of SEK 6m are recognized, as well as an impairment of SEK 11m, mainly related to customer relationships.
Revaluation of the product portfolio - continued strong financial position
As part of the review of resources and assets, the company has made an impairment of intangible assets of SEK 30m related to a limited number of products. This, together with the write-down in StyleShoots, resulting in an annual reduction in amortizations of approximately SEK 10m. Profoto nevertheless maintains a strong balance sheet, with a net debt to EBITDA ratio of 1.4x at the end of the quarter.
LED portfolio in focus - deliveries to start in the fourth quarter
The technological shift towards LED-based solutions continues. Profoto is well positioned for this change, and the company's new LED portfolio will start to be invoiced in the fourth quarter, in line with previous communication. This marks a strategic step in responding to changing customer demands and thereby creating long-term growth. We operate in a market environment where customers' needs are changing rapidly. By combining discipline in our cost structure with a strong focus on innovation, we create the conditions for profitable growth. Our new LED portfolio is key in the continued transition, with the fourth-quarter launches marking a significant step forward. Profoto has led technological development for over 60 years and will continue to do so through this technology shift.
Sundbyberg, October 23, 2025
Anders Hedebark
President and CEO
Contact
Amanda Åström
Head of Investor Relations
Telefon
+46 73 679 34 48
E-post
amanda.astrom@profoto.com
About Profoto
Profoto was founded more than 50 years ago and has since then been a world leader in lighting equipment for professional photographers, driving innovation and awareness of how to create better images through light. We know that light is the indispensable source in all image creation - regardless of camera or situation. Creating great images is about mastering and shaping light. The end users are professional photographers and commercial customers, including major consumer brands and e-commerce companies. The company currently has sales in 51 countries worldwide. Net sales in 2024 totaled SEK 731m, with an EBIT margin of 23 percent. Profoto has ~120 employees at its headquarters in Stockholm and in subsidiaries in the USA, Japan, China, Germany, and the Netherlands.
For more information about Profoto, please visit https://investors.profoto.com