During the transition of IAR’s business model from Perpetual to Subscription, it has been identified that the method previously used to report ARR resulted in an understatement of revenues from Support and Update services. As a result of a review, the reported ARR for Q1 2025 has been updated to 59% compared to the previously reported 53%.
The correction pertains to note 2 in the quarterly report published on April 25, 2025, and note 4 in the 2024 annual report. Total Net sales remain unchanged and are accurately reported.
To ensure accurate and transparent financial disclosures, we are updating our reporting to reflect the corrected ARR and the revised split of Net sales as detailed below:
| SEK m | 2021 | 2022 | 2023 | 2024 | Q12025 |
| License-based revenue | 168.3 | 199.7 | 179.5 | 168.6 | 47.6 |
| Subscription | 17.0 | 45.1 | 2.8 | ||
| Support and software updates | 169.5 | 201.2 | 243.4 | 257.6 | 70.7 |
| Other | 18.1 | 18.9 | 18.1 | 15.8 | 3.0 |
| Net sales | 355.9 | 419.9 | 458.1 | 487.2 | 124.2 |
| ARR | 47.6% | 47.9% | 56.9% | 62.1% | 59.2% |