Lemonsoft Oyj | Company Release | October 31, 2025 at 10:00:00 EET
JULY - SEPTEMBER 2025, IFRS
- Net sales decreased 3.4% and were EUR 7,065 thousand (7,315)
- EBITDA was EUR 2,907 thousand (2,576), 41.1% (35.2) of net sales
- Adjusted EBITDA was EUR 2,736 thousand (2,754), 38.7% (37.6) of net sales
- EBIT was EUR 2,400 thousand (2,051), 34.0% (28.0) of net sales
- Adjusted EBIT was EUR 2,476 thousand (2,476), 35.1% (33.9) of net sales
- Profit of the review period was EUR 1,872 thousand (1,752), 26.5% (24.0) of net sales
JANUARY - SEPTEMBER 2025, IFRS
- Net sales increased 3.8% and were EUR 22,047 thousand (21,239)
- EBITDA was EUR 7,469 thousand (5,552), 33.9% (26.1) of net sales
- Adjusted EBITDA was EUR 6,380 thousand (5,745), 28.9% (27.1) of net sales
- EBIT was EUR 5,759 thousand (4,147), 26.1% (19.5) of net sales
- Adjusted EBIT was EUR 5,413 thousand (4,938), 24.6% (23.3) of net sales
- Profit of the review period was EUR 3,345 thousand (3,088), 15.2% (14.5) of net sales
Key Figures, IFRS
| EUR 1,000 | 7-9/2025 | 7-9/2024 | Change | 1-9/2025 | 1-9/2024 | Change | 1-12/2024 |
| Net sales | 7,065 | 7,315 | -3.4 % | 22,047 | 21,239 | 3.8 % | 28,911 |
| SaaS | 5,477 | 5,354 | 2.3 % | 16,617 | 15,319 | 8.5 % | 20,774 |
| Transaction | 691 | 838 | -17.6 % | 2,230 | 2,453 | -9.1 % | 3,299 |
| Consulting and other | 898 | 1,123 | -20.1 % | 3,201 | 3,467 | -7.7 % | 4,838 |
| Gross margin* | 5,868 | 6,391 | -8.2 % | 18,806 | 18,369 | 2.4 % | 24,973 |
| Gross margin, % of net sales | 83.1 % | 87.4 % | 85.3 % | 86.5 % | 86.4 % | ||
| EBITDA | 2,907 | 2,576 | 12.8 % | 7,469 | 5,552 | 34.5 % | 7,329 |
| EBITDA, % of net sales | 41.1 % | 35.2 % | 33.9 % | 26.1 % | 25.3 % | ||
| Adjusted EBITDA | 2,736 | 2,754 | -0.6 % | 6,380 | 5,745 | 11.1 % | 7,522 |
| Adjusted EBITDA, % of net sales | 38.7 % | 37.6 % | 28.9 % | 27.1 % | 26.0 % | ||
| EBIT | 2,400 | 2,051 | 17.0 % | 5,759 | 4,147 | 38.9 % | 5,404 |
| EBIT, % of net sales | 34.0 % | 28.0 % | 26.1 % | 19.5 % | 18.7 % | ||
| Adjusted EBIT | 2,476 | 2,476 | 0.0 % | 5,413 | 4,938 | 9.6 % | 6,444 |
| Adjusted EBIT, % of net sales | 35.1 % | 33.9 % | 24.6 % | 23.3 % | 22.3 % | ||
| Profit (Loss) of the period | 1,872 | 1,752 | 6.8 % | 3,345 | 3,088 | 8.3 % | 4,031 |
| Profit (Loss) of the period, % of net sales | 26.5 % | 24.0 % | 15.2 % | 14.5 % | 13.9 % | ||
| Equity ratio, % | 60.9 % | 59.2 % | 60.9 % | 59.2 % | 60.4 % | ||
| Net debt | 6,423 | 5,450 | 17.9 % | 6,423 | 5,450 | 17.9 % | 2,755 |
| Gearing, % | 22.3 % | 17.3 % | 22.3 % | 17.3 % | 8.5 % | ||
| Earnings per share (EPS) | 0.11 | 0.09 | 15.5 % | 0.19 | 0.17 | 12.1 % | 0.22 |
| Return on invested capital, % (ROIC) | 6.1 % | 5.0 % | 14.7 % | 10.1 % | 13.0 % | ||
| Return on equity, % (ROE) | 6.1 % | 5.7 % | 10.9 % | 10.0 % | 12.8 % | ||
| Number of employees at the end of the period | 196 | 231 | -15.2 % | 196 | 231 | -15.2 % | 228 |
| Outstanding shares at the end of the period | 17,928,748 | 18,671,632 | 17,928,748 | 18,671,632 | 18,656,702 | ||
| Average outstanding shares during the period | 17,945,059 | 18,610,538 | 18,236,618 | 18,584,178 | 18,604,133 |
*The calculation of key figures has been changed for other operating income and the comparison periods have been changed accordingly.
CEO Alpo Luostarinen
During the third quarter, we finalized the organizational changes which were initiated in Q2. Amidst the organizational changes and the unstable market environment, our sales performance weakened. On the other hand, profitability improved as planned as a result of the personnel reductions implemented in Q2. Net sales for the third quarter wereEUR 7.1 million, with a net sales decrease of 3.4%, while SaaS income grew by 2.3%. Adjusted EBIT was EUR 2.5 million, and the adjusted EBIT margin was 35.1%.
During early autumn, the market development in our key industries manufacturing and wholesale has been cautious, and despite some individual positive signals, the anticipated recovery in manufacturing has not yet materialized. Both the market uncertainty and the ongoing organizational changes within Lemonsoft have also been reflected in our new sales. Decision-making in larger manufacturing and wholesale sales processes has been prolonged over the summer and early autumn, and the average size of our new deals in Q3 was lower than before. From the end of Q3 onwards, we have increased investments in several sales and growth initiatives.
During the quarter, we implemented a new operating model to elevate our customer service to the next level, and we will continue to make significant investments in this area to turn it into a long-term competitive advantage. We have also collected more direct customer feedback at several levels and aim to use these insights to steer our operations in a more customer-oriented direction. Earlier in the autumn, we also resolved the platform-related challenges that had affected our customers, allowing us to now fully focus on developing new solutions and functionalities - with primary emphasis on the features required by our manufacturing and wholesale customers.
We strengthened the group with several key positions in early autumn. Among others, the newly appointed Group Sales Director of Lemonsoft and the Business Director of Finvoicer will play essential roles in accelerating our group's growth. At the same time, we aim to stabilize the pace of change in recent years to a more normal level. After this period of transition, we will focus on setting clear goals for the entire organization and working systematically to achieve them.
Group Financial Development
Group financial result and profitability
July - September 2025
Net sales for the review period were EUR 7,065 thousand (7,315). Net sales decreased by EUR 249 thousand, 3.4%. Organic growth of the review period was -3.4% and organic growth of the recurring revenue was -0.4%. The decline in net sales was driven by lower transaction income and consulting and other income, while SaaS income increased by 2.3%.
The share of SaaS income was 77.5% (73.2), the share of transaction income 9.8% (11.5), and the share of consulting and other income 12.7% (15.4).
EBITDA was EUR 2,907 thousand (2,576), 41.1% (35.2) of net sales. Adjusted EBITDA (adjustments specified in the Alternative performance measures section) was EUR 2,736 thousand (2,754), 38.7% (37.6) of net sales. The most significant adjustment item is the recognition of additional purchase price as revenue.
EBIT was EUR 2,400 thousand (2,051), 34.0% (28.0) of net sales. Adjusted EBIT (adjustments specified in the Alternative performance measures section) was EUR 2,476 thousand (2,476), 35.1% (33.9) of net sales. The most significant adjustment item is the recognition of additional purchase price as revenue.
Profit for the review period was EUR 1,872 thousand (1,752), 26.5% (24.0) of net sales.
Cash flow from operating activities was EUR 969 thousand (347).
January - September 2025
Net sales for the review period were EUR 22,047 thousand (21,239). Net sales increased by EUR 808 thousand, 3.8%. Organic growth of the review period was -0.8% and organic growth of the recurring revenue was 1.3%. Net sales increased mainly due to the acquisition of Atmotics Oy (2024) and Applirent Oy (2024), whose net sales were not included in the comparison period in January - June.
The share of SaaS income was 75.4% (72.1), the share of transaction income 10.1% (11.5), and the share of consulting and other income 14.5% (16.3).
EBITDA was EUR 7,469 thousand (5,552), 33.9% (26.1) of net sales. Adjusted EBITDA (adjustments specified in the Alternative performance measures section) was EUR 6,380 thousand (5,745), 28.9% (27.1) of net sales. The most significant adjustment item is the recognition of additional purchase price as revenue.
EBIT was EUR 5,759 thousand (4,147), 26.1% (19.5) of net sales. Adjusted EBIT (adjustments specified in the Alternative performance measures section) was EUR 5,413 thousand (4,938), 24.6% (23.3) of net sales. The most significant adjustment item is the recognition of additional purchase price as revenue.
The adjusted EBITDA and adjusted EBIT were at the same level as in the comparison period, despite the decrease in net sales. Personnel expenses were lower than in the previous year, while materials and services costs remained exceptionally high due to the Azure transition.
Profit for the review period was EUR 3,345 thousand (3,088), 15.2% (14.5) of net sales.
Cash flow from operating activities was EUR 5,370 thousand (2,811).
Balance sheet, financing and investments
The balance sheet total at the end of the review period was EUR 47,338 thousand (53,862 at the end of the year 2024). The decrease in the balance sheet total was mainly due to the acquisition of own shares.
The Group has capitalized development expenses of EUR 541 thousand during the year 2025 (585 during the comparison period 2024). At the end of the review period, the Group's balance sheet included capitalized development expenses totaling EUR 2,866 thousand (2,734 at the end of the year 2024).
Total equity was EUR 28,781 thousand (32,526 at the end of the year 2024), equity decreased EUR 3,745 thousand. The decrease in equity was mainly due to the acquisition of own shares.
Equity ratio was 60.9% (60.4 at the end of the year 2024) and interest-bearing debt was EUR 10,868 thousand (10,405 at the end of the year 2024).
Cash and cash equivalents at the end of the review period were EUR 4,445 thousand (7,650 at the end of the year 2024).
Personnel
The Group's number of employees was 196 (231) on 30 September 2025. We reported our Group personnel as follows:
- R&D 96 employees
- Customer functions 83 employees
- Other functions, a total of 17 employees
Share-based incentive plan
The Board of Directors of Lemonsoft Oyj has established a share-based incentive plan for the key employees of the company in March 2024. The aim of the new plan is to align the objectives of the shareholders and the key employees in order to increase the value of the company in the long-term, to encourage the management to personally invest in the company's shares, to retain the management at the company, and to offer them a competitive incentive plan in which the participants may earn shares as a reward for performance and their personal investment.
The Performance Matching Share Plan 2024 - 2028 includes three performance periods, covering financial years 2024 - 2026, 2025 - 2027 and 2026 - 2028. The Board will decide annually on the commencement and details of a performance period. The prerequisite for participation in the plan and receiving the reward is that the person allocates freely transferable Lemonsoft Oyj shares held by him or her to the plan or acquires the company's shares in a number determined by the Board.
The rewards from the plan will be paid partly in the company's shares and partly in cash. The rewards will be paid by the end of May in the year following the end of the performance period. The cash proportion is intended for covering taxes and tax-related costs arising from the reward to the participant. In general, no reward will be paid if a participant's employment or service in the group ends before the reward payment.
The performance criterion in the first performance period 2024 - 2026 is the Total Shareholder Return of the company's share (TSR). The achievement of the required TSR levels will determine the proportion out of the maximum reward that will be paid to a participant. The target group of the plan consisted of 4 persons (the CEO and three members of the Management Team). The gross rewards for the first period correspond to a maximum total of 77,000 Lemonsoft Oyj shares including the cash portion. The final number of shares depends on the number of shares acquired by participants and the achievement of the TSR levels. The reward to be paid on the basis of the plan will be capped if the limits set by the Board for the payable reward from the performance period 2024 - 2026 are exceeded. The number of key employees in the target group changed during the performance period and consisted of 2 persons at the end of the reporting period.
The performance criterion in the second performance period 2025 - 2027 is the Total Shareholder Return of the company's share (TSR). The achievement of the required TSR levels will determine the proportion out of the maximum reward that will be paid to a participant. The target group of the plan consists of 4 persons (the CEO and three members of the Management Team). The gross rewards for the second period correspond to a maximum total of 102,675 Lemonsoft Oyj shares including the cash portion. The final number of shares depends on the number of shares acquired by participants and achievement of the TSR levels. The reward to be paid on the basis of the plan will be capped if the limits set by the Board for the payable reward from the performance period 2025 - 2027 are exceeded. The number of key employees in the target group changed during the performance period and consisted of 3 persons at the end of the reporting period.
Shares and shareholders
Share capital and number of shares
The company has one series of shares, and all shares have equal rights. At the end of the review period, Lemonsoft Oyj's share capital consisted of 17,928,748 (18,671,632) shares. The average number of outstanding shares during the review period January-September was 18,236,618 (18,584,178).
Lemonsoft Oyj carried out a reverse accelerated bookbuilding process on 14 May 2025 and acquired 408,864 of the company's own shares. The total purchase price of the shares was approximately EUR 2.5 million. On 19 May 2025, Lemonsoft Oyj cancelled the 408,864 shares acquired through the
reverse accelerated bookbuilding process announced on 14 May 2025.
On 21 May 2025, the Board of Directors of Lemonsoft Oyj decided to continue the company's share buyback program based on the authorisation granted by the Annual General Meeting held on 9 April 2025. Lemonsoft Oyj held 334,020 of its own shares at the end of the reporting period.
The company's share is traded on the First North Growth Market Finland marketplace maintained by Nasdaq Helsinki Oy. During the review period July-September, the highest share price was EUR 7.90 and the lowest EUR 6.50. The closing price on 30 September 2025 was EUR 7.28. The market value of the company at the closing price of the review period was approximately EUR 133.0 million. Average daily trading volume during the review period was 3,437 shares (EUR 24,560).
On 30 September 2025, the company had a total of 2,099 shareholders. The company's largest shareholders can be found on the company's investor website at https://investors.lemonsoft.fi/share/shareholders/.
Authorizations of the Board of Directors
Lemonsoft Oyj has decided in its Annual General Meeting on 9 April 2025 to authorize the Board of Directors to decide on the repurchase of the company's own shares on the following terms and conditions:
- By virtue of the authorization, the Board of Directors is authorized to decide on the repurchase of a maximum of 1,800,000 of the company's own shares. The proposed maximum number of shares to be repurchased corresponds to approximately 9.6% of the company's shares. The authorization includes the right to accept the company's own shares as a pledge.
- The company's own shares can be repurchased otherwise than in proportion to the existing shareholdings of the company's shareholders (directed repurchase).
- The company's own shares can be repurchased at the Nasdaq First North Growth Market Finland marketplace or outside of the marketplace.
- Own shares can be repurchased at a price formed on First North Growth Market Finland on the date of the repurchase or at a price otherwise determined by the markets.
- The shares shall be repurchased using the company's unrestricted equity.
- The shares shall be repurchased for the purpose of financing or carrying out acquisitions or other arrangements, to implement the company's incentive schemes, to develop the company's capital structure, or for other purposes as decided by the Board of Directors.
- The Board of Directors shall decide on the other conditions related to the repurchase of the company's own shares.
The authorization is valid until the 2026 Annual General Meeting, but not beyond 30 June 2026. The authorization shall replace the authorization granted to the Board of Directors by the Annual General Meeting of 9 April 2024 regarding the repurchase of a maximum of 1,800,000 of the company's own shares.
The Annual General Meeting authorized the Board to decide on an ordinary or bonus issue of shares and the granting of special rights (as defined in Section 1, Chapter 10 of the Limited Liability Companies Act) in one or more instalments:
- This issue may total a maximum of 1,800,000 shares corresponding to a maximum of approximately 9.6% of all shares of the company. The authorization applies to both new shares and treasury shares held by the company. The authorization may be used to fund or complete acquisitions or other business transactions, for offering share-based incentive schemes, to develop the company's capital structure, or for other purposes decided by the Board of Directors.
- The authorization entitles the Board of Directors to resolve on all conditions of the issuance of shares and special rights entitling to shares, including the right to deviate from the shareholders' pre-emptive right.
The authorization is in force until the next Annual General Meeting; however, no longer than until 30 June 2026, and it replaces the previous authorizations.
Significant short-term risks and uncertainties
The deterioration of the economic situation and geopolitical changes may have direct and indirect effects on Lemonsoft's business. These may be reflected in the business operations of Lemonsoft's customer companies, for example, in reduced investments by industrial manufacturing companies and decreased needs of subcontracting chains, as well as business and bankruptcy risks. In turn, customers' business challenges may affect Lemonsoft's new customer acquisition, upsells from existing customers, and customer retention.
In the longer term, the biggest challenge for our industry is the availability of skilled personnel. Success of the Group and opportunities for growth depend largely on how well we can recruit, motivate, and engage more skilled personnel and develop our expertise.
In Lemonsoft's cost structure, the single most significant factor is personnel costs, and an increase in the general price level may increase the pressure to increase personnel costs. Lemonsoft constantly monitors the development of the situation from a risk management perspective and strives to ensure the continuation of profitable growth by optimizing its cost structure and pricing.
The ERP market is generally a highly competitive market, and the industry is fragmented. Smaller players are primarily focused in a specific sector of SMEs and larger players do not compete directly for customers in the same market. However, competition in Lemonsoft's operating markets may intensify due to existing competitors or agile new entrants.
Risks related to information security and the IT systems of service providers, as well as potential misuse, are a significant factor affecting the security and continuity of the Group's business. Lemonsoft constantly invests in high reliability and high security systems and strives to ensure the high quality of the services it purchases by selecting leading players in the industry as its key partners. European data protection regulations may also bring unexpected risks to Lemonsoft's operating environment.
Success in acquisitions and related integration work is a key factor for Lemonsoft's growth. The company has made several acquisitions in recent years and aims to continue to grow through acquisitions. There may be unexpected risks associated with target companies and their integration into Lemonsoft.
Events after the review period
Lemonsoft announced on October 6, 2025, that it will strengthen its management team effective December 8, 2025. Jarno Lehikoinen has been appointed as Chief Sales Officer and a member of the management team.
Profit forecast for 2025 (unchanged)
Lemonsoft estimates that the net sales for the financial year 2025 will increase by 0-10 percent compared to the financial year 2024, and that adjusted EBIT will be 18-24 percent of net sales in 2025.
Financial information
Lemonsoft Oyj will publish the financial calendar for 2026 later this year.
Webcast for investors and media
Lemonsoft will host its next webcast for investors and the media in English in connection with the publication of the financial statements bulletin in February 2026.
Lemonsoft Oyj
Board of Directors
Further information
Alpo Luostarinen
CEO
alpo.luostarinen@lemonsoft.fi
+358 50 911 3507
Mari Erkkilä
CFO
mari.erkkila@lemonsoft.fi
+358 40 768 1415
Certified Adviser:
Aktia Alexander Corporate Finance Oy, +358 50 520 4098
About Us
Lemonsoft is a Finnish software company that designs, develops and sells ERP software solutions to streamline its customers' processes across different business lines and administration. The extensive offering of software solutions and related services enables the Company to provide its customers with holistic service. The Company's standardised and scalable software solutions are delivered mainly from the cloud and are based on the SaaS model in which customers pay a monthly service fee for the use of the software. The Company operates in the ERP software market in Finland primarily as a service provider for SMEs. The Company's customer base consists of customers from especially industrial manufacturing, wholesale and retail, professional services automation, construction and accounting.