Acast AB: Q3: Strong profitable growth

Interim report January - September 2025

Third quarter 2025

• Net sales in the quarter amounted to SEK 642.1m (475.4), corresponding to net sales growth of 35% (12%). The growth was primarily driven by the North American and European regions where net sales grew by 58% (29%) and 27% (3%), respectively.
• Organic net sales growth was 41% (14%).
• EBITDA for the quarter was SEK 37.6m (16.2), resulting in an EBITDA margin of 6% (3%).
• Adjusted for items affecting comparability of SEK 2.2m, the adjusted EBITDA was SEK 39.7m (16.2).
• Operating profit amounted to SEK 15.9m (-6.0), resulting in an EBIT margin of 2% (-1%).
• The result for the period amounted to SEK 7.3m (-26.6).
• Earnings per share for the period before and after dilution amounted to SEK 0.04 (-0.15).
• Cash flow from operating activities amounted to SEK 19.6m (-4.1).
• The number of listens amounted to 1,108m (1,094), corresponding to a 1% increase versus the same period last year.
• The Average Revenue Per Listen (ARPL) increased to SEK 0.58 (0.43), reflecting an increase of 33%.

Other significant events

• Acast entered into a partnership with Magnite to expand programmatic podcast advertising. The collaboration brings Acast's 1 billion quarterly podcast listens to a wider array of demand sources, making its premium podcast advertising inventory more efficiently and extensively accessible globally.
• As a part of fulfilling the commitments related to the acquisition of Wonder Media Network LLC ("Wonder Media") which was completed on January 2, 2025, the board of directors of Acast AB (publ) ("Acast") resolved, by virtue of authorization from the annual general meeting held on May 20, 2025, to issue and transfer warrants in Acast to the sellers of Wonder Media. The warrants have been exercised for subscription of 1,397,154 new shares in Acast.

Comments from the CEO: Strong profitable growth
The strong revenue growth and continued profitability gains in Q3 2025 reaffirm the strength of our business model. Building on our proven strategy, we have formalized updated financial targets that underscore our commitment to sustained, profitable growth for the years ahead.

Performance in North America and Europe fuels 41% organic growth
Our strong sales performance continued into the third quarter, resulting in 35% Y/Y revenue growth, of which 41% organic growth. We are seeing a robust development across all areas of the business. Geographically, North America significantly boosted the group's growth with a 58% Y/Y sales increase, while Europe also contributed substantially with 27% Y/Y revenue growth. The listens growth rebounded and saw a 1% Y/Y increase. The average revenue per listen continues to develop well, rising by 33% to SEK 0.58.

Increased profitability margin on the back of growth
In terms of profitability, we maintained a solid gross margin of 39%. Our operating expenses increased by 19%, a result of focused resource allocation, primarily fueling sales and marketing initiatives to drive our future growth. Thanks to disciplined execution and the expanding revenue base, we delivered EBITDA of SEK 38m, corresponding to a 6% EBITDA margin. This represents a 3 percentage point improvement over the same period last year.

Targeting 10% EBIT margin by 2028
With our business performing according to plan, we are pleased to announce a new financial target framework that defines our commitment to sustained value generation over the coming years. Specifically, we are targeting an organic sales CAGR exceeding 15% in 2025-2028 and a 10% operating profit (EBIT) margin by 2028. The margin target is a milestone and not the final destination in our plan.

Our conviction in our growth trajectory stems from our unique position in a large, growing and significantly undermonetized market, coupled with our global scale - anchored by strong positions in the UK and Nordics and vast potential for growth in the US and Continental Europe. This trajectory is amplified by the operational discipline we have established: continued broad-based local market profitability improvements and the leverage gained by effectively scaling against our group-wide global cost. Furthermore, our growth strategy is more efficient than ever, benefiting from increasing campaign sizes and elevated use of low-touch channels, which together are driving necessary scalability and margin expansion.

The implementation of this target framework supersedes all previous financial targets, including the targets for full-year 2025. However, we want to be explicit: our commitment to delivering against our previously stated goals of 3-5% adjusted EBITDA margin and positive operating cash flow for full-year 2025 remains firm.

To support this next phase of delivery, we are pleased to announce that Anders Hägg will be joining as our new CFO on January 15th 2026. We look forward to executing this plan with diligence and remain deeply committed to driving sustained, profitable growth and delivering value to all our stakeholders.

Greg Glenday
CEO

Report presentation
CEO Greg Glenday and CFO Emily Villatte will present the report in a webcast today October 30 at 10:00 CET. The presentation will be held in English and there will be the opportunity to ask questions during the presentation. Link to the presentation: https://edge.media-server.com/mmc/p/7dq4uuzy

Link to the report
The Interim Report is attached to this press release and available on https://investors.acast.com/

For more information

Emily Villatte, CFO and deputy CEO, Acast
Tel: [phone]
E-mail: [e-mail]

Investor Relations:
Dennis Berggren
Tel: [phone]
E-mail: [e-mail]

About Acast

Since 2014, Acast has been creating the world's most valuable podcast marketplace, building the technology which connects podcast creators, advertisers and listeners. Its marketplace spans over 140,000 podcasts, 3,300 advertisers and one billion quarterly listens. Crucially, those listens are monetized wherever they happen - across any podcasting app or other listening platform.

The company operates worldwide and is headquartered in Stockholm, Sweden. Acast is listed on the Nasdaq First North Premier Growth Market (ACAST.ST). Certified Adviser is FNCA Sweden AB, [e-mail].

This information is information that Acast 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 2025-10-30 07:00 CET.