"We ended 2025 with a clear financial inflection. Our transformation is visibly reflected in the results: continued growth in sales bookings, driven by strong growth in new ARR and a recovery in ad hoc sales, alongside improved margins and strengthened operating performance. We are progressing well with the new brand tracking platform and enter 2026 with a robust foundation for scalable delivery and profitable growth." - Anders Dahl, CEO
Q4 in summary
- Sales bookings increased 20.7% year over year, including a 129.4% increase in ARR bookings.
- ARR was 131.3 MSEK at quarter end, reflecting an underlying* annual increase of 8.1% and 6.1% growth versus Q3 2025. Reported ARR declined by 18.7%.
- Reported net sales declined by 15.0% (13.7% in local currencies) to 59.9 (70.5) MSEK.
- Reported subscription revenue declined by 21.0% to 32.7 (41.4) MSEK, but increased 6.2% versus Q3 2025. Ad hoc revenue from subscribers increased by 10.6% to 14.8 (13.3) MSEK, while ad hoc revenue from other clients declined by 20.6% to 12.5 (15.8) MSEK.
- Adjusted EBITDA-Capex was 6.6 (1.9) MSEK, corresponding to a margin of 11.1% (2.7%).
2025 in summary
- Sales bookings increased 13.0% year-over-year, including a 159.7% increase in ARR bookings.
- Reported net sales declined by 17.1% (15.9% in local currencies), to 222.6 (268.5) MSEK.
- Reported subscription revenue declined by 18.6% to 135.5 (166.5) MSEK. Ad hoc revenue from subscribers declined by 6.0% to 47.5 (50.5) MSEK, and ad hoc revenue from other clients declined by 23.8% to 39.2 (51.4) MSEK.
- Adjusted EBITDA-Capex was -4.8 (11.6) MSEK, corresponding to a margin of -2.2% (4.3%).
- The Board has decided not to propose a dividend for the 2025 financial year, in order to maintain balance sheet strength and prioritise supporting the Company's continued operational and commercial momentum. Assuming the business sustains its current momentum and delivers profits in 2026, the Board would anticipate proposing to re-instate dividend payments.
Events during and after the quarter ended
- No significant events during or after the quarter ended.
Financial summary
| Q4 | Q4 | 2025 | 2025 | |
| Underlying growth figures | Reported | Underlying | Reported | Underlying |
| Subscription revenue | -21.0% | 4.5% | -18.6% | -1.6% |
| Ad hoc revenue from subscribers | 10.6% | 12.5% | -6.0% | -2.6% |
| Ad hoc revenue from other clients | -20.6% | -20.6% | -23.8% | -23.8% |
| Net sales | -15.0% | -0.4% | -17.1% | -6.7% |
| Annual Recurring Revenue (ARR) | -18.7% | 8.1% | -18.7% | 8.1% |
*The underlying growth figures exclude the impact of phased-out contracts and the previously disclosed extraordinary churn that occurred in late 2024 and early 2025.
| MSEK if not stated | Q4 2025 | Q4 2024 | ? | 2025 | 2024 | ? |
| ARR bookings | 16.3 | 7.1 | 129.4% | 32.8 | 12.6 | 159.7% |
| ARR | 131.3 | 161.6 | -18.7% | 131.3 | 161.6 | -18.7% |
| Net sales | 59.9 | 70.5 | -15.0% | 222.6 | 268.5 | -17.1% |
| of which subscription revenue | 32.7 | 41.4 | -21.0% | 135.5 | 166.5 | -18.6% |
| Gross margin | 77.5% | 74.0% | 3.5 | 75.2% | 75.0% | 0.3 |
| Adjusted EBITDA-Capex | 6.6 | 1.9 | 4.8 | -4.8 | 11.6 | -16.4 |
| Adjusted EBITDA-Capex margin | 11.1% | 2.7% | 8.4 | -2.2% | 4.3% | -6.5 |
| Net income | 2.2 | -0.3 | 2.4 | -34.0 | -1.7 | -32.3 |
| Profit margin | 3.6% | -0.4% | 4.0 | -15.3% | -0.6% | -14.6 |
| Net cash flow | -8.1 | 11.2 | -19.4 | -26.6 | 2.7 | -29.3 |
| Net financial position | 14.5 | 41.1 | -26.6 | 14.5 | 41.1 | -26.6 |
| Earnings per share, SEK | 0.28 | -0.03 | 0.31 | -4.33 | -0.22 | -4.11 |
| Average shares outstanding | 7,863,186 | 7,863,186 | 0.0% | 7,863,186 | 7,863,186 | 0.0% |
Comments by the CEO
Sales bookings continued to grow in the fourth quarter, confirming the positive momentum seen in the third. The growth was driven by both new ARR from our refined ideal customer profile and a strong recovery in ad hoc deals. New subscription contracts strengthen the predictability of our revenue, while the rebound in ad hoc projects reflects renewed client confidence and the relevance of our advisory capabilities. At the same time, the cost and efficiency programmes implemented over the past two years are clearly paying off. Revenue generation, project margins, and operating margin all improved, showing that we are now capturing significantly more value from our business.
While reported net sales declined by 15.0% in the fourth quarter and 17.1% for the full year of 2025, this reflects previously communicated churn and the deliberate phasing-out of lower-margin contracts. As outlined earlier, we have prioritised recurring revenues over less predictable ad hoc volumes in order to improve visibility, resilience, and margin quality. Excluding extraordinary churn and phased-out contracts, net sales were broadly stable in the fourth quarter, and subscription revenues returned to growth. The 6.1% quarter-on-quarter increase in ARR, combined with net revenue retention of 103.5%, confirms that the underlying commercial momentum has turned positive. Total sales bookings grew by 20.7%, including a 129.4% increase in ARR bookings, supporting underlying ARR growth of 8.1% in 2025. The recovery in ad hoc sales comes primarily from subscribing clients, reflecting our growing engagement with key customers, enabling future ARR expansion. Our long-term relationships with fast-growing consumer brands, where we are embedded in core marketing decision processes, are a key driver of this development.
We also continue to see that the measures taken to reduce our cost base and increase efficiency are delivering the intended effects. The adjusted EBITDA-Capex margin for the quarter was 11.1%, the best quarter since the fourth quarter of 2021. Taken together, the second half of 2025 shows a markedly stronger profitability profile, confirming that our actions are moving Nepa in the right direction.
Strategy and transformation delivering results
Over 2024 and 2025 we have reshaped Nepa into a more focused and scalable business, with clearer commercial priorities and a more efficient operating model. We have phased out low-margin and highly customised arrangements, redirected resources towards our ideal customer segments, and built a more professional outbound sales and marketing engine. In parallel, we have strengthened our delivery organisation by better leveraging our global footprint and embedding technology and AI across the value chain. Today, we track brands across more than 50 markets globally, which, combined with our strong client embeddedness, creates an attractive platform for scalable growth. These changes are now visible in our performance, with healthier growth, higher quality of earnings, and a more resilient business mix. With these structural changes largely completed, our focus now shifts from transformation to disciplined, profitable growth.
Progress on product suite
Our core Marketing Optimization offering continued to develop well during the year. The launch of Continuous Marketing Mix Modeling has broadened our value proposition and is already helping clients link brand performance and media investments more directly to business outcomes. In parallel, we are progressing according to plan with the transformation of our tracking platform. By simplifying our tech stack, automating data flows, and reducing the need for bespoke setups, we are building a more scalable foundation that supports faster innovation and even more consistent delivery quality. This platform will enable clients to track brand performance, optimise media, and evaluate campaigns within a single, modern suite, underpinned by continuous longitudinal brand and marketing datasets. This not only strengthens our client offering but also improves scalability and margin consistency across engagements.
| Structural initiatives 2024-2025 | |
| Initiative | Status |
| Revenue mix reset and strategic shift toward recurring revenue | Completed - share of profitable recurring revenue increasing. Legacy churn will affect comparable figures through Q2 2026. |
| Cost base rightsizing and operating model simplification | Completed - structurally lower cost base. |
| Commercial transformation and revised go-to-market-strategy | Implemented - strengthened pipeline and bookings momentum. |
| Tracking platform simplification and tech consolidation | Ongoing - improved scalability and consistency and enables more focus on product innovation in 2026 and forward. |
Outlook
Entering 2026, we will continue our focus on underlying ARR growth and building on the momentum established in the second half of 2025. The commercial progress reflected in higher sales bookings and improved retention provides increased visibility and we expect the positive ARR trend to continue in 2026. The extraordinary churn that affected late 2024 and early 2025 is now fully reflected in the revenue base, and churn has since then returned to normal levels. With the structural cost measures fully implemented and a more scalable operating model in place, incremental revenue is expected to translate into improved earnings. While macroeconomic conditions remain somewhat uncertain, Nepa now operates from a significantly more resilient and recurring revenue foundation. Our focus in 2026 is to build further on ARR momentum while maintaining disciplined cost control and strengthening long-term earnings capacity.
Anders Dahl
CEO
For more information, please contact:
Anders Dahl, CEO
+46 702 75 84 45
Email: ir@nepa.com
Financial reports
All financial reports are published on Nepa's website: http://nepa.com/investor-relations
This information is information that Nepa 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 2026-02-20 08:00 CET.
About Nepa
Nepa, a leader in Brand Experience and Marketing Optimization, helps some of the world's most reputable brands drive growth through data. This is achieved by combining first-class research, cutting-edge technology, deep expertise, and innovative solutions. Headquartered in Stockholm, Sweden, with offices in Norway, Finland, Denmark, UK, USA and India, the company is listed on the Nasdaq First North Growth Market and has been publicly traded since 2016.
Redeye Sweden AB is Nepa's Certified Adviser. Full contact details are available at nepa.com/investor-relations.
