Q2 2025 Techstep ASA Earnings Call Transcript
Key Points
- Techstep ASA (LTS:0K2D) reported a net gross profit margin of 36% in Q2, driven by increased share of owned software and advisory services revenues.
- The company delivered positive EBITA adjusted for the 11th consecutive quarter, with a 64% growth year over year.
- Recurring revenue grew by 4% year over year, with Own Software growing the fastest at 6%.
- Techstep ASA (LTS:0K2D) generated positive cash flow from operations, with a NOK24 million improvement year over year.
- The company secured several strategic agreements, including a partnership with Telia Norge and new contracts with municipalities in Sweden and Norway.
- Total revenues in Q2 declined by 7% year over year, primarily due to a 12% reduction in revenues from devices.
- Net loss in the quarter was NOK15 million, impacted by amortization of intangible assets.
- Advisory and Services revenues declined by 9% year over year, driven by variability in transactional revenues.
- The Norwegian market showed a 14% decline in revenues due to the expiration of a large public frame agreement.
- There is some volatility and customer churn in recurring revenue contracts as the company shifts its commercial strategy.
Good morning, everyone, and welcome to our Q2 presentation followed by a Q&A session. I'm here with our CFO, Ellen, and we are ready to share our Q2 results today and talk about the progress, improvements, priorities and achievements from last quarter and the strong commercial momentum we see across markets.
It's now more than 18 months since I joined Techstep as the CEO, and we continue to accelerate our profitability and transition into a more scalable and relevant business enabler for our customers and partners across Nordics and globally. We continue to develop and optimize our organization, as well as tuning our strategic direction with a clear focus on creating more value for our customers and partners by having the best mobile tech expertise and building the solutions and services the market needs.
Our consistent positive performance underscores the strength of our offerings and the value they deliver to our clients. We remain dedicated to our mission of becoming Europe's leading mobile circular tech provider. Our team's
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