Challenging 2023 ends with positive signals and increased order intake
During a difficult 2023, in which the first three quarters were tough for the RemaSawco business unit, the Group has deliberately continued to invest in developing new products and improved customer service. We feel that confidence in the future, and thus a willingness to invest, increased among customers during the fourth quarter, and RemaSawco received several orders. This trend has continued in the beginning of 2024. At the same time, the Motion Analysis business unit operates in a growing market, which is expected to continue for an extended period.
| Fourth quarter October-December | Full year January-December | |
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| Financial overview | Oct-Dec 2025 | Oct-Dec 2024 | Full year 2025 | Full year 2024 |
| Order intake, MSEK | 33.2 | 88.0 | 125.1 | 228.5 |
| Order backlog, MSEK | 69.8 | 117.5 | 69.8 | 117.5 |
| Net sales, MSEK | 38.6 | 45.8 | 168.5 | 184.9 |
| Capitalized development expenditure, MSEK | 2.5 | 4.0 | 10.6 | 14.9 |
| Gross margin, % | 68 | 69 | 68 | 68 |
| EBITDA, MSEK | -3.5 | 1.0 | 9.1 | 26.8 |
| EBITDA margin, % | -8.5 | 2.0 | 5.1 | 13.4 |
| Operating profit (EBIT), MSEK | -9.5 | -3.6 | -14.7 | 8.8 |
| Profit after tax, MSEK | -9.3 | -3.8 | -14.6 | 8.6 |
| Cash flow from operating activities, MSEK | 5.0 | 14.5 | 22.3 | 39.2 |
| Solidity, % | 58 | 55 | 58 | 55 |
| Average number of employees | 77 | 76 | 77 | 72 |
| Earnings per share | -0.10 | -0.04 | -0.16 | 0.10 |
A word from the CEO
My name is Jan Molin, and at the end of 2025, I took on the role of CEO and President of Image Systems for an interim period. I approach this position with great respect for the Company's specialized expertise and with a clear ambition to enhance our position in selected niches through customer-focused innovation, high delivery capacity, and a larger share of recurring revenue.
Maintained gross margin despite low demand
The fourth quarter, as well as the entire year of 2025, was characterized by slow markets with low investment appetite and extended business processes. This led to a significant decline in order intake and lower net sales, resulting in a weaker EBITDA of MSEK -3.5 (1.0). Additionally, currency exchange rates had a negative impact on our financial performance. We have managed to maintain our gross margin and a positive cash flow from operating activities of MSEK 5.0 (14.5).
For the full year, order intake declined compared to a strong 2024, totaling MSEK 125.1 (228.5). Additionally, net sales and EBITDA also declined compared to the previous year. However, a positive cash flow from operating activities and a healthy solidity give us scope to invest selectively in product development and commercialization. During the quarter, we continued our efforts in generative AI as planned, and we have moved forward with the introduction of AI models into both our working methods and our products.
RemaSawco - delivery precision and service crucial for customer satisfaction in the current situation
The wood products market remains challenging. The fourth quarter was characterized by persistently low demand, high raw material prices, and compressed margins, combined with general geopolitical uncertainty. However, export markets showed stability, and there are signs of a potential recovery in the second half of 2026. This provides some support for a gradually more positive market outlook moving forward.
Order intake for the quarter was MSEK 22.5 (68). The decrease in order intake resulted in lower net sales and reduced EBITDA. In response, we have prioritized delivery precision and customer satisfaction, while also advancing upgrade and efficiency improvement projects at our customers. We have continued to invest in our product portfolio and enhance our service offering.
Motion Analysis - subscriptions and new platform build stability
During the quarter, Motion Analysis experienced a consistently cautious market with extended decision-making processes. The transition to a subscription-based business model has been successful, but it will negatively impact earnings in the short term. As we advance, this will generate more recurring revenue and thus greater predictability. A clear indicator of this is that the order backlog for subscription and support services continued to develop positively, increasing to
MSEK 40.7 (31.8) at the end of the year, which strengthens the stability of the business.
Additionally, we began commercializing our new software platform this year, which features enhanced functionality and improved capabilities to address new application areas. We believe that, combined with a rising share of subscription revenue, this will be a key driver of our future growth and profitability. Furthermore, we are enhancing our market presence in priority markets through increased direct sales, and we are seeing good long-term demand in the defense and automotive industries, among others.
Priorities with regard to market conditions
Our direction remains firm: we aim to increase the share of recurring revenue and strengthen predictability. We are now prioritizing a stronger service organization, continued integration of AI into our working methods and products, and improved efficiency in delivery and development. Given the ongoing uncertainty in the world around us and the low willingness to invest, we are focusing our resources on scalable product offerings and on the markets that are best positioned to provide stable revenue streams, even in the short term. For RemaSawco, this means maintaining close collaboration with customers on upgrades and service. Motion Analysis is continuing its shift toward a higher share of subscription revenue, while focusing on a more structured approach to sales and implementation.
When the investment climate improves, we will be well positioned. Until then, we have an organization that is equipped to deliver results, even in more challenging market conditions.
THE GROUP'S DEVELOPMENT IN THE FOURTH QUARTER
Order intake, net sales and profit
Order intake amounted to MSEK 33.2 (88.0). Order backlog as of December 31, 2025, amounted to MSEK 69.8 (117.5).
Net sales amounted to MSEK 38.6 (45.8). Capitalized development expenditure amounted to MSEK 2.5 (4.0) and relates to both business units.
Gross margin amounted to 68 (69) percent. During the quarter, inventory was written down by MSEK 1.4 due to obsolescence, which affected the gross margin.
EBITDA amounted to MSEK -3.5 (1.0).
Other external charges decreased slightly to MSEK -6.6 (-7.9). Personnel costs decreased slightly to MSEK -25.3 (-26.9) compared to the same period last year.
Depreciation/amortization amounted to MSEK -6.0 (-4.6). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch.
Net financial items amounted to MSEK 0.0 (-0.4).
Result after taxes amounted to MSEK -9.3 (-3.8).
Financial position, investments and cash flow
The Group's investments in non-current assets during the quarter amounted to MSEK 4.8 (6.5) of which MSEK 2.5 (4.0) was related to capitalized development projects. Capitalization of development projects takes place in both business units.
The operational cash flow during the quarter amounted to MSEK 0.2 (8.0). Solidity as of December 31, 2025, amounted to 58 (55) percent. Net indebtedness amounted to 0.0 (0.1) times.
Available cash and cash equivalents including the undrawn part of the overdraft facilities amounted to MSEK 26.7 (28.2) as of December 31, 2025.
THE GROUP'S DEVELOPMENT DURING THE FULL YEAR
Order intake amounted to MSEK 125.1 (228.5). Order backlog as of December 31, 2025, amounted to MSEK 69.8 (117.5).
Net sales amounted to MSEK 168.5 (184.9). Capitalized development expenditure amounted to MSEK 10.6 (14.9) and relates to both business units.
Gross margin amounted to 68 (68) percent.
EBITDA amounted to MSEK 9.1 (26.8).
Other external charges decreased, which is mainly explained by a decrease in consultancy costs linked to the RemaSawco business unit. Personnel costs increased as a result of the expansion of our own operations in North America and Japan.
Depreciation/amortization is higher than last year and amounted to MSEK -23.8 (-18.0) as we have begun depreciation/amortization of several development projects in connection with commercial launches. Net financial items amounted to MSEK -0.5 (-0.8).
The result after taxes amounted to MSEK -14.6 (8.6).
ROLLING 12-MONTH ORDER INTAKE, REVENUE AND EBITDA
The Group's rolling 12-month EBITDA margin during the fourth quarter amounted to 5.1 percent. The Group's long-term EBITDA target of delivering a stable 15 percent EBITDA margin requires growth in net sales. The pace of the ongoing change in the Motion Analysis business unit, to a higher proportion of subscription and support agreements, may also affect how quickly the long-term goal is achieved. The changed business model will eventually translate into growth in both net sales and EBITDA results.
BUSINESS UNIT: REMASAWCO
RemaSawco provides solutions to optimize production in the sawmill industry. The product portfolio includes proprietary software that, with the help of laser, 3D scanning, X-ray, and automation, measures and analyzes timber and boards throughout the sawmill process to maximize value exchange, minimize waste, and thus increase customer profitability.
Performance during the period
Order intake during the fourth quarter amounted to MSEK 22.5 (68.0), reflecting the challenging market situation in the wood products industry. The quarter was characterized by low domestic demand, shortages of raw materials, compressed margins, and high raw material prices, although prices in Sweden showed signs of falling slightly toward the end. Overall, this contributes to uncertainty in the sawmill industry.
For the full year of 2025, order intake totaled MSEK 79.2 (165.9), marking a significant decrease compared to the previous year. In contrast, export markets have been stable and increased in 2025 compared to 2024. Sweden remains one of the world's largest exporters of sawn timber, accounting for around 13% of global exports. This, together with signs of recovery in the second half of 2026, provides some support for a cautiously more positive market outlook.
However, the business unit's earnings were negatively affected by lower sales volumes. Net sales amounted to MSEK 30.6 (37.7) and EBITDA to MSEK 1.0 (5.3), corresponding to a margin of 3.2 (13.5) percent. Delivery precision was high and customer satisfaction remained good. The business unit is well-positioned for a market recovery, and the efficiency improvement projects implemented have built resilience for periods of subdued demand.
During the year, investments in the product portfolio and service offering continued, including through further developed SLAs, upgrade packages, and customer-specific projects, which strengthen our long-term work with technology development and create added value for customers.
| Oct-Dec 2025 | Oct-Dec 2024 | Full year 2025 | Full year 2024 | |
| Order intake, MSEK | 22.5 | 68.0 | 79.2 | 165.9 |
| Net sales, MSEK | 30.6 | 37.7 | 133.7 | 146.8 |
| Capitalized development expenditure, MSEK | 1.1 | 1.9 | 4.1 | 6.9 |
| EBITDA, MSEK | 1.0 | 5.3 | 19.8 | 28.0 |
| EBITDA margin, % | 3.2 | 13.5 | 14.4 | 18.2 |
Product development
During the quarter, we continued to develop and update our product portfolio with a focus on increased performance and long-term competitiveness. This effort included further development of our X-ray scanner and updates in the board product area, where both our board scanner and the new Boardhandling software have been improved. Our investments in product development aim to increase the scalability of our solutions and strengthen key functions for digitization and optimization throughout the sawmill process. We have also continued to implement AI models both in our internal working methods and in our products, with the goal of increasing customer value, efficiency, and predictability in deliveries.
BUSINESS UNIT: MOTION ANALYSIS
Motion Analysis offers its customers software for the analysis of high-speed film, a niche where the Company is the world leader. The software is sold under the product names TEMA and TrackEye?.
Performance during the period
The restraint that has characterized the market since the beginning of the year continued during the quarter, resulting in longer decision-making processes among customers. Order intake was MSEK 10.7 (20.0), which is a significant decrease compared to the strong order intake during the same period last year. However, the order backlog for subscription and support services showed positive development, reaching MSEK 40.7 (31.8) at the end of the quarter. This strengthened order backlog contributes to increased long-term stability.
Net sales amounted to MSEK 8.0 (8.1) and EBITDA amounted to MSEK -2.4 (-1.9). Earnings were impacted by negative currency effects as well as the transition to a subscription-based business model. Once fully implemented, the subscription-based business model will provide a more consistent revenue stream and higher earnings. Continued investments in product development have also negatively impacted EBITDA.
The new software platform, which began to be commercialized during the year, constitutes a strategically important part of the Company's growth agenda. The platform, in combination with an increasing share of subscription revenue and enhanced market presence in priority markets through direct sales, is anticipated to be a key driver of future growth and improved profitability.
| Oct-Dec 2025 | Oct-Dec 2024 | Full year 2025 | Full year 2024 | |
| Order intake, MSEK | 10.7 | 20.0 | 45.9 | 62.6 |
| Order backlog subscription and support services, MSEK | 40.7 | 31.8 | 40.7 | 31.8 |
| Net sales, MSEK | 8.0 | 8.1 | 34.8 | 38.1 |
| Capitalized development expenditure, MSEK | 1.4 | 2.1 | 6.5 | 8.0 |
| EBITDA, MSEK | -2.4 | -1.9 | -4.0 | 5.1 |
| EBITDA margin, % | -25.5 | -18.6 | -9.7 | 11.1 |
Product development
Product development and innovation are important parts of the Company's long-term strategy. Several innovation initiatives are underway with a focus on strengthening competitiveness in existing markets, as well as continued expansion in newly established markets. During the quarter, we continued to implement AI models in both our internal working methods and our products.
OTHER INFORMATION
Parent Company
The Parent Company's revenue for the fourth quarter amounted to MSEK 1.2 (0.8). Operating profit amounted to MSEK -2.1 (-2.4). Result after taxes amounted to MSEK -2.1 (12.6). Investments in fixed assets amounted to MSEK 0.0 (0.0). The Parent Company's available liquid funds as of December 31, 2025, amounted to MSEK 0.2 (0.2). The Parent Company's equity as of December 31, 2025, amounted to MSEK 110.6 (117.3) and the solidity was 98 (98) percent.
Significant events after the period
The Motion Analysis business unit has received an order from a US defense customer worth approximately MSEK 2.7.
A new CEO has been recruited to the RemaSawco business unit, effective February 1, 2026.
Personnel
The average number of employees for the period was 77 (76). The number of employees at the end of the period was 77 (75).
Number of shares
The number of shares on December 31, 2025, amounted to 89,207,818.
Accounting policies
Image Systems applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report for the Image Systems Group is prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Disclosure in accordance with IAS 34, Interim Financial Reporting, is provided in notes as well as elsewhere in the interim report.
The interim report for the Parent Company, Image Systems AB, is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Financial Reporting Board's recommendations RFR 2 Accounting for Legal Entities.
Image Systems applies the ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures. Definitions of indicators are provided on page 16 and relevant reconciliations on page 15.
One inventory item has been reclassified from other receivables to inventory. Comparative figures have been adjusted.
Risks and uncertainties
The Group's significant risks and uncertainties include business risks related to agreements with customers and suppliers as well as other external factors such as currency fluctuations. The Group's significant financial and business-related risks are discussed at depth in the management report and under Note 3 in the 2024 Annual Report. No significant new or changed risks or uncertainties have been identified during the quarter.
This year-end report has not been reviewed by the Company's auditors.
The Board's dividend proposal
The Board of Directors proposes to the annual general meeting that no dividend be paid for the financial year 2025, to continue enabling investments in the development of the business and to strengthen the Company's financial position.
Financial calendar
Annual report April 2026
Interim report January-March 2026 April 24, 2026
Annual General Meeting 2026 May 7, 2026
Interim report April-June 2026 July 17, 2026
Interim report January-September 2026 October 23, 2026
Year-end report 2026 February 5, 2027
Long-term financial objectives
Image Systems aims to create long-term value growth for its shareholders. To achieve this, the Board of Directors has set long-term financial objectives:
EBITDA >15%
Solidity >50%
Dividend 20% of the profit after taxes
The Board of Directors and the Chief Executive Officer confirm that the interim report provides a true and fair overview of the Parent Company's and the Group's operations, financial position, and performance and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.
Linköping, February 6, 2026
Anders Fransson Jörgen Hermansson Catharina Lagerstam
Chairman of the Board Director Director
Matilda Wernhoff Jan Molin
Director Director and Acting Chief Executive Officer
Financial reports are available on the Company's website http://www.imagesystemsgroup.se
Image Systems AB, Snickaregatan 40, SE-582 26 Linköping. Corporate registration number 556319-4041
This disclosure contains information that Image Systems AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 06-02-2026 08:00 CET.
For further information, please contact:
Jan Molin
CEO
jan.molin@imagesystems.se
