Modulight Corporation | Company Release | October 24, 2025 at 13:00:00 EEST
This release is a summary of Modulight's interim report for January-September 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 interim report is unaudited.
Highlights in July-September 2025
- Revenue was EUR 1,765 (640) thousand
- EBITDA was EUR -184 (-1,278) thousand
- EBITDA margin was -10.5% (-199.6%) of revenue
- Operating profit (EBIT) was EUR -1,220 (-2,108) thousand
- EBIT margin was -69.2% (-329.2%) of revenue
- Profit for the review period was EUR -1,227 (-1,967) thousand
- Free cash flow from operations was EUR -1,076 (-2,150) thousand
- Earnings per share (EPS) were EUR -0.03 (-0.05)
Highlights in January-September 2025
- Revenue was EUR 5,333 (2,664) thousand
- EBITDA was EUR -810 (-3,813) thousand
- EBITDA margin was -15.2% (-143.1%) of revenue
- Operating profit (EBIT) was EUR -3,861 (-6,134) thousand
- EBIT margin was -72.4% (-230.2%) of revenue
- Profit for the review period was EUR -3,953 (-5,788) thousand
- Free cash flow from operations was EUR -3,942 (-7,223) thousand
- Earnings per share (EPS) were EUR -0.09 (-0.13)
Key figures
| Group EUR 1,000 unless otherwise noted | 7-9/2025 | 7-9/2024 | 1-9/2025 | 1-9/2024 | 1-12/20241) |
| Revenue | 1,765 | 640 | 5,333 | 2,664 | 4,095 |
| EBITDA | -184 | -1,278 | -810 | -3,813 | -4,836 |
| EBITDA-% | -10.5% | -199.6% | -15.2% | -143.1% | -118.1% |
| Operating result (EBIT) | -1,220 | -2,108 | -3,861 | -6,134 | -8,337 |
| Operating result (EBIT) -% | -69.2% | -329.2% | -72.4% | -230.2% | -203.6% |
| Earnings for the period | -1,227 | -1,967 | -3,953 | -5,788 | -6,447 |
| Earnings per share (EPS, EUR) | -0.03 | -0.05 | -0.09 | -0.13 | -0.15 |
| Acquisition of fixed and intangible assets | -891 | -872 | -3,132 | -3,410 | -4,900 |
| Free cash flow from operating activities | -1,076 | -2,150 | -3,942 | -7,223 | -9,736 |
| Cash and cash equivalents2) | 10,550 | 18,531 | 10,550 | 18,531 | 17,407 |
| Net debt2) | -7,309 | -13,523 | -7,309 | -13,523 | -12,864 |
| Gearing ratio 2) | -16.1% | -27.1% | -16.1% | -27.1% | -26.1% |
| Equity ratio2) | 89.7% | 86.7% | 89.7% | 86.7% | 87.5% |
| Headcount (FTE) 2) | 71 | 67 | 71 | 67 | 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
Our revenue has grown for four consecutive quarters, and during this year our growth has exceeded 100% compared to last year. Profitability has continued to improve steadily, and our order book has become more diversified. There is still plenty of work ahead, but we have made significant progress over the past year. Our PPT business is advancing across several indications, and the number of sites utilizing it is growing rapidly. Our product platform is in use by several key customers and is progressing to pilot production with multiple customers. Operational efficiency is also improving continuously.
Revenue for the third quarter was EUR 1.8 million, an increase of 176% compared to the same period in 2024. However, the revenue level continues to reflect our strategic transition to the PPT business model and the temporary delays earlier this spring caused by quality variations in certain purchased materials. While these variations resulted in delays extending into next year, we are pleased that the technical issues have now been resolved, and customer feedback has been excellent. Sales volumes remain moderate, but the trend is now positive. The diversification of our customer portfolio and the increasing maturity of projects are the main reasons for the reduced quarterly fluctuations. U.S. tariffs have not had a significant impact on our sales or profitability so far, although some customers are taking longer to move forward with their decisions. Our exports to the U.S. have mostly been tariff-free. During the summer, at the time we released our Q2 results, international media speculated about tariffs that could significantly affect us and our customers. In practice, we have seen no signs of these materializing. We continue to see no direct impact from tariffs, apart from extended customer decision-making cycles and increased risk level.
Our own production facility has become an increasingly important competitive advantage in the current global environment. The geopolitical situation has also created new business opportunities, best illustrated by a comment from the CEO of a major company: "I didn't know there was such a factory in Europe [referring to our broad key technology and manufacturing capabilities]." This sentiment is reflected throughout our business, but particularly in the growing interest from certain large European and Japanese corporations. Over the past year, we have received several small orders and a rising number of new inquiries from these segments for highly interesting projects. Our technology and unique European-based manufacturing capabilities have clearly strengthened customer confidence in selecting us as a long-term partner for developing future products. Most of our projects involve customers committing to us as an exclusive technology partner. The United States remains our primary focus, and our operations there continue to develop strongly. We have continued to advance local manufacturing capabilities.
Our extensive investment program has now been completed, and the related commissioning costs have decreased. This has been a major contributor to our continuously improving profitability. We have also systematically enhanced productivity across all operations, which has further improved profitability and cash flow. On an EBITDA basis, profitability improved by 86% in the third quarter, reaching EUR -0.2 million compared to EUR -1.3 million in the same period last year.
Both the quarterly and year-to-date figures clearly show that revenue growth is translating directly into improved profitability, demonstrating the increased scalability of our operations. Profitability has also benefited significantly from greater synergies between customers and products, as the same platforms are now used across multiple customer projects, reducing and streamlining the amount of required configuration work.
Unfortunately, we had to implement personnel adjustments and held statutory change negotiations. These naturally incurred one-off direct and indirect costs, but we believe that all related impacts are already reflected in the Q3 results. The direct cost savings from the negotiations are modest, but the additional efficiencies identified during the process are expected to be significant once realized. I want to extend my sincere thanks to the entire Laser Family for their outstanding and selfless commitment to our mission to help patients and fight cancer. As a result of the change negotiations, our cost structure will improve toward the end of the year. A special thanks goes to our Operations team, who once again performed exceptionally well, with professionalism and good spirits despite challenging circumstances. We will continue our long-term efforts to improve operational efficiency.
During Q3, we noted that the PPT business for certain products now generates more value than our previous business model would have, even if we were to sell the entire install base of systems every year. The cost structure of the business has also improved, while our customers are increasingly benefiting from our cloud-based services. Overall, while the cash flow from PPT operations remains relatively small, it is already meaningful, growing, and diversifying.
The objective of our projects is to commercialize our own products. Our product development pipeline remained stable at 32 projects. The efficiency of product development has also benefited from the ability to increasingly reuse the same solutions for multiple customers. Our technical team has made strong progress in platform development while also creating entirely new solutions. We are particularly pleased that the deliberate broadening of our development pipeline in recent years has enabled us to grow despite delays in several individual projects. The amount of positive customer feedback has clearly increased.
In terms of sustainability, we have followed the same core principles and practices throughout our 25-year company history. According to the award jury, this was one of the key reasons we were granted the national "Kultainen Nuija" award for best board work at the beginning of our current strategy period in 2022. This year, we have achieved carbon neutrality in our operations for both Scope 1 and Scope 2 emissions. The most significant single measure has been the transition of our factory and office facilities to geothermal heating. I want to emphasize, however, that our commitment to long-term sustainability goes far beyond that-for example, 100% of metals in our processes have been recycled throughout our history. We have also adapted our corporate social responsibility activities to the prevailing economic realities while continuing to support youth sports and cancer patients.
We will continue to focus on executing our growth strategy, including the expansion of the PPT model and the advancement of product development projects toward commercialization of our products. We believe that through our strategy and our strengths, our business will return to strong and profitable growth over the course of our strategic period extending through the end of 2025.
Webcast
Modulight's CEO Seppo Orsila will present the result in an English-language webcast on October 24, 2025, at 2:30 p.m. EEST. The broadcast can be followed at https://modulight.zoom.us/webinar/register/WN_59ctJvXhSU6dzQ78XJAhSw.
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 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