Q3 2025 Yubico AB Earnings Call Transcript
Key Points
- Yubico AB (YUBCF) maintains a strong position as a leader in modern multi-factor authentication, with zero account takeovers reported by customers using YubiKeys.
- The company has a high gross margin, consistently in the 80% range, despite being a hardware-focused business.
- Yubico AB (YUBCF) has a significant customer base, covering almost 30% of the global 2000 companies, with a high loyalty and repurchase rate.
- The company has experienced a consistent average growth rate of 40% per year over the past five years.
- Yubico AB (YUBCF) is expanding its market reach with new functionalities and geographical expansions, including a new office in Singapore and availability in Best Buy physical stores.
- Yubico AB (YUBCF) reported a 17% decline in order bookings year-over-year, with a 9% underlying decline excluding currency effects.
- The company faced softness in large orders, particularly from the US public sector, partly due to government shutdowns.
- Net sales declined by 7% nominally, driven by negative currency impacts, and gross profit decreased by 10%.
- Increased expenses, including higher personnel costs and LTIP program costs, contributed to a 4% decrease in EBIT margin.
- Inventory levels are higher than desired, primarily due to the final delivery of secure elements, impacting cash flow.
Good morning, everybody and welcome to Yubico's Q3 report call. I'm Mattias, CEO of Yubico, and with me today is Snejana Koleva, our new Chief Financial Officer, and we'll take you through the material. And several of you have probably been attending these calls before, but as always, we'll start with a quick overview of the company and before we get into news and details of the financial report.
So in terms of the agenda, we'll start with a company overview. So, Yubico is a proud hardware company, and our core product is the YubiKeys. And it, what we typically like to stress when we talk about our growth today is the fact that we are the world leader in modern multi-factor authentication.
And our customers who have deployed our keys and the modern protocols on the keys have experienced zero account takeovers and of course, we want to keep it that way. So that's the basis of our success. We're a hardware company, but in spite of that, we've been able to maintain healthy gross margins, pretty consistently in the 80% range over the
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