Regulatory press release

Careium reports second quarter results 2025

The second quarter in summary

Net sales decreased 11.9 percent to SEK 202.1 million (229.4)
Reported net sales was negatively impacted with SEK 15.1 million by the accounting of financial leases in Sweden and with SEK 5.9 million by currency effects
Gross margin increased to 43.3 percent (41.7)
Operating profit (EBIT) was SEK 10.0 million (21.8), and the operating margin was 4.9 percent (9.5)
Profit for the period amounted to SEK 6.5 million (13.9) and earnings per share to SEK 0.23 (0.54)
Cash flow from operating activities was SEK 20.2 million (14.0) and from investing activities it was SEK -19.2 million (-13.5)
Cash position was SEK 34.1 million (34.8) at the end of the first half-year

CEO’s commentary

Careium reported lower sales, but higher gross margin and operating cash flow in the second quarter. Net sales in the quarter decreased by 11.9 percent to SEK 202.1 million (229.4). Reported net sales was negatively impacted with SEK 15.1 million by the accounting of financial lease classifications in Sweden, SEK 11.9 million by lower products sales and SEK 5.9 million by currency effects.

In the Nordics, net sales decreased 15.8 percent in the quarter, heavily affected by the accounting of financial lease classifications. Excluding the accounting impact of financial leases, net sales in the Nordics increased 1.4 percent in the quarter and 4.9 percent in the first half of the year. Product sales in Germany and the UK started slow but picked up momentum as the quarter progressed.

From early next year we foresee drastically lower negative impact by the accounting of financial lease classifications in Sweden. As more contracts are recognized as operational leases (in contrast to financial leases), the share of recurring revenue will increase.

Gross margin increased to 43.3 percent (41.7) and EBIT decreased to SEK 10.0 million (21.8) in the quarter, partly due to initiatives in sales and development.

Overall, we reached sound margins of 13% EBITDA and 5% EBIT despite accounting impact of financial lease classifications. Notably, we increased the positive cash flow from operating activities to SEK 20.2 million (14.0).

We continue to invest in our flagship platform i-Care Center. It is the focal point of our digital ecosystem enabling rich, safe and active lives.

This quarter, we closed our first order of fixed alarms in France (order value SEK 2.3 million) which is promising as this market is transitioning to a digital infrastructure by switching off 2G in 2025, 3G in 2028 and analogue PSTDN 2030. This opens opportunities for our digital ecosystem over the coming years.

To advance Careium’s position in the highly attractive direct to consumer business, we have rebuilt our entire online infrastructure. This overhaul is the main enabler of a successful digital consumer business. The segment offers great potential and a different dynamic, cost-to-serve and degree of control than the public sector.

Another focus area is to sell our services to assisted living companies that represents 20-30 percent of the revenue potential across Europe. To tap into this opportunity, Careium continues its focus on assisted living with the established footholds and contracts in Denmark and UK.

The company is well-financed with sufficient cash to deliver on our strategy. In addition, we have access to a credit facility to facilitate potential acquisitions.

We are cautiously working through a solid pipeline of opportunities for potential acquisitions. Our ambition remains to approach companies matching our profile, focused on integration and efficiency opportunities.

Following a challenging quarter that improved in its later half, we are optimistic for the second half of 2025.

Christian Walén
President and CEO

Webcast

A live broadcast report presentation will be held Friday 11 July at 10.30 am with President and CEO Christian Walén and CFO David Granath.

The webcast is accessed on: https://youtube.com/live/di94NwGFtg8?feature=share

The presentation material will be available on: https://www.careium.com/en-gb/investors/financial-information/presentations/

About Us
Careium is a leading provider in Europe of technology-enabled care solutions, enhancing the safety, independence, and quality of life for seniors while improving operational efficiency for care providers. Careium is one of the few players that delivers end-to-end digital assisted living systems, including security alarms, smart sensors, accessories and secure communication platforms with alarm response.

By combining innovation with regulatory compliance, Careium empowers care providers to deliver smarter, safer, and more cost-effective support, freeing resources for higher-value care. Demand for home-based care solutions grows, and our recurring revenue model and technology gives us a strong position in the care tech market. The company is listed at Nasdaq First North Stockholm with FNCA Sweden AB as the Certified Adviser.