January 1 - December 31, 2025
Financial summary October-December 2025
- Net sales totaled SEK 163m (200), down 18.6 percent. Organic growth totaled -9.3 percent, and the currency effect, -9.3 percent.
- EBIT amounted to SEK 16m (57) and the EBIT margin to 9.8 percent (28.7).
- Profit for the period totaled SEK 7m (43).
- The return on adjusted operating capital totaled 7.2 (31.9) percent.
- Cash flow from operating activities totaled SEK 38m (37).
- Earnings per share (basic and diluted) totaled SEK 0.18 (1.08).
- During the fourth quarter, the company entered into a new revolving credit facility (RCF) with a three-year term, with the option to extend for an additional two years. The terms are in all material respects consistent with the previous agreement.
Financial summary January-December 2025
- Net sales totaled SEK 617m (731), down 15.6 percent. Organic growth totaled -10.4 percent, and the currency effect, -5.2 percent.
- EBIT was SEK -6m (167), and the EBIT margin was -1.0 (22.9) percent.
- Adjusted EBIT amounted to SEK 41m (153) and the adjusted EBIT margin was 6.6 (20.9) percent. Adjustments for the period related to impairment of intangible assets of SEK -41m and nonrecurring restructuring costs of SEK -6m.
- Profit/loss for the period totaled SEK -23m (126).
- Cash flow from operating activities totaled SEK 151m (97).
- Earnings per share (basic and diluted) totaled SEK -0.57 (3.15).
Significant events after the end of the period
- In light of changing market conditions and our strategic shift toward LED, the Board of Directors has decided to update the financial targets. The updated targets entail annual organic sales growth that exceeds 5 percent and a 20 percent EBIT margin, compared with the previous targets of 10 percent growth and an EBIT margin of 25-30 percent. The dividend policy remains unchanged, and Profoto aims to distribute at least 50 percent of net profit to its shareholders through cash dividends and/or share buybacks, taking into account factors such as financial position, cash flow, and growth opportunities.
- To ensure operational flexibility and a continued strong financial position in uncertain macroeconomic conditions, the Board of Directors proposes no dividend for 2025.
Key ratios, Group
| Oct-Dec 2025 | Oct-Dec 2024 | Full year 2025 | Full year 2024 | |
| Net sales, SEKm | 163 | 200 | 617 | 731 |
| Organic growth, % | -9.3 | -3.1 | -10.4 | -6.5 |
| EBITDA, SEKm | 33 | 72 | 104 | 226 |
| EBITDA margin, % | 20.0 | 36.1 | 16.8 | 30.9 |
| EBITA, SEKm | 27 | 67 | 81 | 204 |
| EBITA margin, % | 16.8 | 33.6 | 13.2 | 27.9 |
| EBIT, SEKm | 16 | 57 | -6 | 167 |
| EBIT margin, % | 9.8 | 28.7 | -1.0 | 22.9 |
| Adjusted EBIT, SEKm | 16 | 52 | 41 | 153 |
| Adjusted EBIT margin, % | 9.8 | 26.0 | 6.6 | 20,9 |
| Profit/loss for the period, SEKm | 7 | 43 | -23 | 126 |
| Cash flow from operating activities, SEKm | 38 | 37 | 151 | 97 |
| Net debt, SEKm | 181 | 235 | 181 | 235 |
| Net debt/EBITDA LTM | 1.74 | 1.04 | 1.74 | 1.04 |
| Return on operating capital, % | 7.2 | 31.9 | 7.2 | 31.9 |
| Earnings per share, SEK | 0.18 | 1.08 | -0.57 | 3.15 |
High activity in a still challenging market
Market conditions remain challenging
The fourth quarter was characterized by a continued tough and cautious market situation, affected by the macroeconomic situation and ongoing uncertainty among our customers. Sales totaled SEK 163m (200), a decrease of 19 percent compared to the previous year. Organic growth was -9 percent, and currency effects negatively impacted sales by 9 percent. Overall, we saw no significant changes in the market landscape compared with the previous quarter. At the same time, we note that some Asian players have continued to strengthen their market positions through aggressive pricing strategies and large discounts, further intensifying competition. The development continued to vary between our regions. In the US, the market remained cautious, driven by uncertainty regarding macroeconomic trends, resulting in a decline of 18 percent in organic sales compared to the previous year. In EMEA, we observed stable demand compared with the previous quarter, despite an organic sales decrease of 7 percent. In APAC, growth continued in China, while Japan remained weak, resulting in overall organic growth of 1 percent.
LED launch according to plan
During the year, we have taken important steps in our strategic LED initiative. In line with previous communications, we saw a certain financial turnover effect from the LED launches toward the end of the year, with positive pre-sales of the L600. The next key step is the start of deliveries of our first LED panel, the Profoto ProPanel, which is expected at the end of the first quarter of 2026, with some financial turnover effect during the second quarter. At the same time, we continue to establish ourselves in the Cinema segment through a number of new agreements and partnerships. Although we are still in an early phase of establishment, we see clear progress, strong collaboration with our partners, and increasing market interest.
Stable performance thanks to past measures
EBIT for the quarter amounted to SEK 16m (57), corresponding to an EBIT margin of 10 percent (29). During the quarter, we achieved the targets of the cost-saving program announced earlier in the year; a reduction of the cost base by approximately 20 percent, corresponding to an improved cash flow of SEK 60-80m, and an improved EBIT of SEK 30m on an annual basis. We have now established a more sustainable cost level, strengthening our competitiveness and profitability going forward. Profoto maintains a high level of investment and technical sophistication, which we protect through patents. Therefore, it is strategically important to defend these in the event of infringement. During the quarter, a total cost of SEK 7m was recognized for legal expenses related to ongoing patent disputes during the year, which negatively impacted EBIT. These cases are expected to continue during the current year, with costs estimated at SEK 5-10m.
Updated financial targets reflect new market conditions
In light of changed market conditions and our strategic shift toward LED, the Board has decided to update the financial targets. The new target is annual organic sales growth that exceeds 5 percent and a 20% EBIT margin. The primary growth drivers going forward are expected to be sales to new customers, primarily in the LED segment. With an efficient cost base and continued focus on profitable growth, we are well-positioned to deliver value to our customers and shareholders in the coming years. The dividend target remains unchanged.
In conclusion, 2025 has been a challenging year characterized by market weakness, macroeconomic uncertainty and a rapidly changing competitive landscape. At the same time, we have implemented important strategic and operational initiatives - not least a comprehensive cost-saving program and significant investments in our future LED portfolio. We end the year with a stable financial position, a more efficient organization, and a clear strategic direction going forward. I would like to thank all our staff for their dedication, professionalism and hard work during a challenging year. Their efforts have been instrumental in strengthening Profoto and laying the foundation for long-term profitable growth.
Sundbyberg, February 11, 2026
Anders Hedebark
President and CEO
Financial calendar
2025 Annual Report - April 9, 2026
2026 Q1 Interim Report - May 6, 2026
2026 Annual General Meeting - May 6, 2026
2026 Q2 Interim Report - July 17, 2026
2026 Q3 Interim Report - October 20, 2026
Year-end report - February 10, 2027
Conference call
Profoto Holding AB (publ) will publish its year-end report for 2025 on Wednesday, February 11 at 8:00 a.m. CET. At 09:00 a.m. CET on the same day, a webcast conference call will be held at which President and CEO Anders Hedebark will present the report together with CFO Linus Marmstedt. The presentation will be followed by a Q&A session. The presentation will be held in English. If you wish to participate via the webcast, please click on the link below. https://profoto.events.inderes.com/q4-report-2025
If you wish to participate via teleconference, please register via the link below. After registering, you will receive a phone number and a conference ID to log into the conference. The conference call will provide an opportunity to ask questions. https://events.inderes.com/profoto/q4-report-2025/dial-in
Contact
Linus Marmstedt
CFO
Phone
+46 768 08 03 01
E-mail
linus.marmstedt@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
This information is information that Profoto Holding 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 2026-02-11 08:00 CET.
