iZafe Group AB (publ.) today presents its report for the second quarter of 2026, on August 31.
Financial Performance in Summary
- The Group's net sales for the quarter amounted to 2,639 (1,136) TSEK. Net sales increased significantly compared to the corresponding period of the previous year, while the implementation pace was lower than planned. Several planned installations were postponed due to longer customer processes and limited availability of Dosell pending the new production batch. During the second half of the year, the Company's focus is to convert existing agreements, customer expansions and commercial opportunities into more revenue-generating units and increased recurring revenues.
- Operating result (EBIT) for the quarter amounted to -7,511 (-4,277) TSEK. In addition to the higher operating cost base, the result was impacted by increased depreciation and amortization, including amortization of identified excess values arising in connection with the acquisition of the Dutch operations.
- Operating result before depreciation and amortization (EBITDA) for the quarter amounted to -5,862 (-3,295) TSEK. The deterioration is mainly attributable to the consolidation of the Dutch operations, reinforcements of the organization and increased sales and marketing activities. Costs have therefore increased ahead of the expected increase in revenues from new agreements and upcoming installations.
- Profit after financial items for the quarter amounted to -7,530 (-4,503) TSEK.
- Cash flow from operating activities amounted to -3,954 (-1,715) TSEK. Cash and cash equivalents amounted to 10,163 TSEK at the end of the period. The cash position strengthened during the quarter, primarily through financing activities, while operating cash flow remained negative. A key priority going forward is therefore to increase the conversion of invested capital and installed hardware into recurring revenues and improved cash flow.
- Earnings per share for the quarter before/after dilution amounted to -0.02 (-0.01) SEK.
- Equity per share at the end of the quarter amounted to 0.04 (0.03) SEK.
- The equity ratio at the end of the period was 38.6 (50.1) percent.
Significant events during the quarter
- iZafe Group announces that its subsidiary Dosell AB has obtained a European patent in data-driven medication management. The patent strengthens the Company's intangible assets and long-term position in digital healthcare solutions.
- iZafe Group announces that its subsidiary Dosell AB has been awarded contracts in Region Jönköping County's procurement of medication dispensing systems. The agreement covers both the region and all municipalities in the county, entered into force on April 1, 2026, and enables successive call-offs during the contract period.
- iZafe Group announces that the Company has obtained ISO/IEC 27001 certification for information security. The certification covers the entire Group and strengthens the Company's position in procurements and international expansion.
- iZafe Group announces that its subsidiary Dosell AB, through Atea Sverige AB, has been selected as the solution for Västervik Municipality and cooperating municipalities. The agreement has an estimated potential of approximately 500 units, corresponding to 3.7 MSEK in annual recurring revenue at full rollout.
Significant events after the end of the quarter
- iZafe Group announces that the Board of Directors has completed a directed set-off issue of 10,386,409 B shares to Stichting TCCN as partial payment for the acquisition of the Dutch operations. The issue corresponds to approximately EUR 310,000 and results in dilution of approximately 2.36 percent.
Forecast
In this report, we present a forecast graph illustrating our expected growth in both ARR and active Dosell units over the coming years. The forecast is based on our current markets and key performance indicators, outlining a clear path toward an exponential increase in recurring revenue as more units become activated.
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
| ARR (MSEK) | 0.3 | 1.7 | 10 | 22.5 | 42.3 | 63.9 | 85.5 |
| Growth of Dosells | 0 % | 326 % | 352 % | 125 % | 69 % | 41 % | 29% |
Comments from the CEO
From demand to delivery and recurring revenues
The second quarter shows a business that continues to grow, but where development during the first half of the year has been slower than planned. Net sales increased to 2.6 MSEK compared with 1.1 MSEK for the corresponding period of the previous year. At the same time, EBITDA amounted to -5.9 MSEK and cash flow from operating activities amounted to -4.0 MSEK. During the year, we have continued to invest in our organization, production and commercial capacity in order to manage a larger business. Revenues have not yet caught up with this scaling-up.
In particular, the time from agreements and customer decisions to installed and revenue-generating Dosell units has been longer than planned, while production delays have limited our ability to deliver at the desired pace. As a result, part of the development we expected during the first half of the year has been postponed.
Our most important task during the second half of the year is clear: to convert the agreements, customer relationships and business opportunities we have built up into more active Dosell units, higher recurring revenues and gradually improved cash flow.
We stand by our ARR forecast
Despite the slower start to the year, we stand by our previously communicated forecast of 22.5 MSEK in annual recurring revenue, ARR, at the end of 2026. This requires a clear acceleration during the second half of the year.
Our assessment is primarily based on the ongoing production of approximately 1,300 new Dosell units being delivered and installed before year-end. This volume provides the hardware capacity required to achieve the forecast, provided that the planned implementations are carried out at the pace we are working towards. The commercial opportunities we see, particularly in the Netherlands, support this assessment. Following the end of the quarter, deliveries from the new production batch have commenced and the focus is now shifting to installation and revenue generation.
At the same time, we are already working on the next production order. Since the current order was placed, lead times for several components have increased significantly due to changing external factors. We are therefore adapting our production planning to the new conditions and need to work further ahead. When customer demand increases, hardware availability must not be what limits our growth.
Higher production volumes also mean that capital is tied up in hardware before the corresponding recurring revenues are realized. This places greater demands on planning, inventory management and working capital. Our objective is to make the chain from production to installation and recurring revenues more predictable.
Sweden - significant potential also in our existing customer base
The Swedish market for medication dispensing systems continues to mature. The Swedish Association of Local Authorities and Regions (SALAR) highlights medication dispensing systems as an established example of welfare technology, with clear benefits and experience from several municipalities. We see the same shift in our customer dialogues, where the focus is increasingly on broader implementation in regular operations.
During the quarter, we took several important commercial steps in Sweden. The agreement within Region Jönköping County entered into force, Dosell is available through Adda's framework agreement and, through Atea, we were awarded the agreement with Västervik Municipality and cooperating municipalities. At full rollout, the Västervik agreement has an estimated potential of approximately 500 Dosell units, corresponding to approximately 3.7 MSEK in annual recurring revenue.
An important part of the potential in Sweden also lies in the customer base we have already built. Dosell is established in approximately 40 municipalities, and usage can grow among customers where the product has already been implemented.
When a municipality has completed an initial implementation, trained its staff and integrated Dosell into its operating procedures, the threshold for gradually expanding usage to more users and areas of operation becomes lower. Growth therefore depends not only on new agreements, but also on expansion among existing customers.
We will continue to win new customers, but it is equally important to develop those we already have. Implementation normally takes place gradually, and the time between an agreement and its full revenue potential may therefore be significant. During the second half of the year, we will focus on both broadening usage among existing customers and shortening the time from decision to installation.
The Netherlands and further international markets
In the Netherlands, we are working both with new customers and to increase usage among existing healthcare organizations. We see how an initial installation can develop into a broader rollout within the same organization. At the same time, integrations and partnerships can make Dosell easier to implement in customers' existing systems and operating procedures.
The Netherlands is the market that has been most clearly affected by the production delays during the first half of the year. The new version of Dosell includes an updated sensor required for the Dutch market, which caused several planned implementations to be postponed. The corresponding recurring revenues were therefore also deferred. Following the end of the quarter, deliveries from the new production batch have commenced, and the focus is now on installation and increasing the implementation pace.
The important long-term aspect is that an initial installation can be followed by broader usage, more revenue-generating units and higher recurring revenues within the same customer.
At the same time, our activities are becoming more concrete in several other markets. In Norway, we are working together with local partners on municipal opportunities, technical integrations and the implementation of Dosell. In Finland, activities have intensified, with a focus on local references, potential pilots and a clearer commercial model. Following the end of the quarter, we have also taken further steps towards a local market launch in Iceland together with our distribution partner.
In parallel, we are working on additional markets where Dosell has the potential to become established over time. We are continuing these dialogues, but are prioritizing resources to the markets where customer interest is most concrete and where the path to installations and recurring revenues is clearest. This enables us to focus on commercial impact today while building the next phase of our international expansion.
We are building for significantly larger volumes
To achieve profitable growth, it is not enough for Dosell to be scalable as a product. Our processes and internal systems must also be able to handle significantly more customers and units without the organization having to grow at the same pace.
During the year, we have built in-house system support that connects sales, customer implementations, installed units and follow-up. At the same time, we are automating parts of the administration to reduce manual processes and provide the organization with better decision-making support.
The objective is for the same organization to be able to manage a significantly larger customer and unit base with better control from the initial customer dialogue to an active Dosell unit. Over time, this will contribute to revenues growing faster than the cost base.
Growth must translate into cash flow
At the end of the quarter, cash and cash equivalents amounted to 10.2 MSEK, while cash flow from operating activities amounted to -4.0 MSEK. The cash position strengthened during the quarter, primarily through the payment of the remaining proceeds from the directed issue carried out during the first quarter.
As production volumes increase, more capital is tied up in hardware before the units are installed and begin generating recurring revenues. A shorter time from production to installation and revenue generation is therefore important for both growth and cash flow.
We enter the second half of the year with a larger commercial base, new production volume and more opportunities to grow among existing customers than one year ago. Our focus is to deliver the new production to customers, increase usage among existing customers, bring new municipalities and healthcare organizations into operation and secure future production volumes in time.
The need for improved medication management is clear, and we have built a position to address it. The next step is to convert this position into more active Dosell units, growing recurring revenues, improved profitability and cash flow.
This is our focus during the second half of the year.
Anders Segerström
Chief Executive Officer, iZafe Group
Contacts
Anders Segerström, Chief Executive Officer
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12
iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm
E-mail: ir@izafegroup.com
www.izafegroup.com
eucaps.com/izafe-group
About iZafe Group AB (publ.)
iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.
The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution Pilloxa with the smart pillbox. The company's solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.
The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.
iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. The company's Certified Adviser is DNB Carnegie Investment Bank AB. Further information is available at www.izafegroup.com
This information is information that iZafe Group 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 2026-08-31 08:00 CEST.
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