Modulight starts change negotiations
Summary
- Modulight has initiated change negotiations to streamline operations and improve profitability, potentially affecting up to 25 employees due to financial and production-related reasons.
- We expect a reduction in the cost structure and a moderate decline in the growth forecast, as cash reserves have been declining since Modulight's IPO.
- Despite some revenue improvement in the last four quarters, Modulight's results and cash flows remain negative, and we anticipate no rapid turnaround in cash flows.
- We will update our estimates and outlook once the outcome of the negotiations is known, as these negotiations impact a significant portion of Modulight's workforce.
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Translation: Original published in Finnish on 8/29/2025 at 7:30 am EEST.
Modulight announced on Thursday that it would start change negotiations. The negotiations, which are being initiated for financial and production-related reasons, aim to streamline operations and improve profitability. According to preliminary estimates, potential layoffs and redundancies will affect a maximum of 25 people. The change negotiations were not entirely unexpected, as our forecast does not anticipate a turnaround in earnings until 2028, and there has been uncertainty regarding the adequacy of cash reserves. We will update our estimates and outlook once the outcome of the negotiations is known. We initially anticipate both a reduction in the cost structure and a moderate decline in the growth forecast.
Cash reserves have been declining since the IPO
Modulight's revenue and results declined sharply after its IPO. This was due to the transition to the PPT model, which we believe reduced revenue and gross margin, as well as a major investment program that increased costs and headcount. While there has been a positive development in revenue and results during the last four quarters, the result and cash flows have remained negative. Losses and the investment program have led to a decline in cash reserves since the IPO.
We will update our estimates following the outcome of the negotiations
Modulight rapidly increased its workforce after going public. Starting in 2024, expenses were managed more closely than before, and the number of staff decreased slightly from previous levels. The upcoming change negotiations will affect a maximum of 25 people. Therefore, the negotiations concern a significant portion of Modulight's personnel (70 at the end of Q2'25). Naturally, the outcome of the negotiations and their impact on personnel are unknown at this stage. We will update our estimates and position once the outcome of the negotiations is known. Visibility into Modulight's medium-term revenue is quite poor, but we believe that the change negotiations indicate that no rapid turnaround in cash flows is to be expected.
Modulight operates in the technology industry. The company designs, markets, and produces biomedical laser products used in oncology, genetics, and ophthalmology. The customers primarily consist of hospitals and corporate customers operating in medical technology. In addition to the main business, various value-added services are also offered. Their main market is the US.
Read more on company pageKey Estimate Figures25.08
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 4.1 | 8.0 | 10.8 |
| growth-% | 1.7 % | 95.3 % | 35.6 % |
| EBIT (adj.) | -8.3 | -5.4 | -4.5 |
| EBIT-% (adj.) | -203.5 % | -67.2 % | -41.4 % |
| EPS (adj.) | -0.15 | -0.12 | -0.09 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | neg. | neg. |
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