Q4 2025 FormPipe Software AB Earnings Call Transcript
Key Points
- Formpipe Software AB (LTS:0M8Y) reported a significant improvement in EBIT, moving from a negative SEK6 million in Q4 last year to a positive SEK8 million.
- The company completed the divestment of its public sector business, resulting in a proposed distribution of proceeds of SEK14 per share, totaling SEK760 million.
- Recurring revenue remains strong, accounting for 91% of net revenue, indicating a stable income stream.
- The company has successfully transitioned Close Brothers, a major banking client, to a fully cloud-based solution, showcasing its ability to grow with its customers.
- Formpipe Software AB (LTS:0M8Y) has a strong EBITDA margin improvement to 21%, reflecting effective restructuring efforts.
- Net ACV was lower than desired at SEK2 million, affected by churn in legacy products and a banking client.
- The company experienced a decline in support and maintenance revenue by 13%, which could impact future profitability.
- Foreign exchange fluctuations negatively impacted net sales, with a significant effect from the stable Swedish Krona.
- There were substantial one-off costs of SEK43 million related to divestment and restructuring, impacting overall financial performance.
- The company faces challenges in the Temenos space, with weak performance affecting ACV growth.
Thanks everyone for joining this call with FormPipe where I present the Q4 numbers. So, I'll dive straight in.
So, the header for this call is a strategic shift for continued scalability, and it has been, of course, a very eventful Q4. And I will talk a little bit about all the things that have happened, but let's just start on the most important things, which is actually the numbers, and I think you recognize this slide from before.
So, diving in directly into the numbers, we have net sales of SEK60 million and that is in relation to SEK59 million that we have in queue for 2024, we had a net ACV of SEK2 million compared to SEK8 million in Q4'24 and then finally we had an EBIT of SEK8 million compared to minus-SEK6 million in Q4 last year. And then talking a little bit about these high-level numbers, so from a net sales perspective, we are of course affected by FX as you can imagine, being a very global company that Lasernet is, we have most of our revenues in other currencies than SEK, and given the increased stability of the Swedish
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