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Ossdsign: Another solid step forward - ABG

OssDsign

This is a third party research report and does not necessarily reflect our views or values

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- Strong growth and gross margin continued in Q2'25
-EBIT revised up by 11% for '25e and 4% for '26e-'27e
- Fair value range narrowed to SEK 12-18 (10-18)


Another strong set of numbers

In Q2, OssDsign delivered an adj. EBIT beat of 28% vs. ABGSCe, driven by continued strong sales momentum and a higher-than-expected gross margin. Sales came in at SEK 47m (+11% vs. ABGSCe at SEK 42m, no consensus), partly explained by somewhat inflated orders in the final days of the quarter. This resulted in organic sales growth of 73% (vs. ABGSCe at 50%). The gross margin surprised on the upside at 96.8% (ABGSCe 95.0%), representing a q-o-q improvement of 0.4pp. Sales commissions and fees came in below expectations at 48.6% of sales (vs. ABGSCe 50.0%), underscoring OssDsign's improved operational leverage. Cash flow from operating activities was SEK -12m in Q2, slightly below our expectations (ABGSCe SEK -6m), but notably improved from SEK -18m in Q2'24. Following the recent directed share issue, OssDsign held SEK 213m in cash and cash equivalents at the end of the quarter.
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