Second quarter 2025 compared to 2024, Group

• Net sales amounted to SEK 75.6 million (60.5), rendering a net sales growth of 25% (-29%)
• The FX adjusted net sales growth for the quarter was 38% (-29%)
• Software revenue amounted to SEK 42.1 million (37.3). The share of total sales reached 56% (62%)
• Adjusted EBIT amounted to SEK -12.0 million (-32.6), corresponding to an adjusted EBIT margin of -16%, compared to -54% for the same period last year
• Net income amounted to MSEK -9.0 (-27.5)
• Earnings per share before dilution amounted to SEK -0.24 (-0.79) and diluted to SEK -0.24 (-0.79)

First six months 2025 compared to 2024, Group

• Net sales amounted to SEK 166.5 million (136.2), rendering a net sales growth of 22% (-22%)
• The FX adjusted net sales growth for the quarter was 27% (-23%)
• Software revenue amounted to SEK 92.4 million (79.9). The share of total sales reached 55% (59%)
• Adjusted EBIT amounted to SEK -3.0 million (-48.7), corresponding to an adjusted EBIT margin of -2%, compared to -36% for the same period last year
• Net income amounted to MSEK -18.4 (-38.9)
• Earnings per share before dilution amounted to SEK -0.48 (-1.12) and diluted to SEK -0.48 (-1.12)

A word from the CEO:

We ended the second quarter stronger than the same period last year, with continued growth and clear improvements in results. Net sales increased by 25% to SEK 75.6 million and excluding FX-effects the growth was even higher. The third and fourth quarters are usually our busiest in terms of business activity, and this year we are seeing a clear seasonal effect where several decisions have been postponed, especially in North America. As increased defense budgets around the world begin to translate into concrete investments in our product area, we have a solid foundation for the second half of the year and into 2026. 
 
The EBIT result improved to SEK -12.0 million, compared to SEK -32.6 million in the same period last year. This is partly due to higher revenue, but it is also an outcome of the structural cost-efficiency efforts we have implemented, and an important step towards a more scalable and long-term sustainable business model. 
 
North America 
As we mentioned earlier, the situation in North America is progressing well, though somewhat slower than we expected at the start of the year. The uncertain political climate regarding budgets, strategic direction, and available funding has delayed decisions. Nevertheless, we have succeeded in signing both new contracts and extensions under our COTS (commercial off-the-shelf) offering to the defense market during the quarter. 
The outlook remains promising in that the contracts which have not yet been signed are still being pursued in the pipeline, and the feedback we are receiving from potential customers is positive. Furthermore, we are more optimistic about the political and budgetary outlook for US defense appropriations for the remainder of 2025 and into 2026. 

EMEA 
Europe is in a rearmament phase, both within traditional armed forces and in the broader work to build civil resilience across society. We continue to see positive developments in the market, although it takes time to translate political promises into contracts and projects. During the quarter, we signed an agreement with a new NATO country in Europe for capability development in exercise and training. This is an important part of our strategy to solidify our position as the NATO standard for exercise and training management. 

We also continued to deepen our relationships with both the British and Swedish armed forces during the quarter. In the UK, we are part of a winning bid for exercises and training for the Royal Navy, with a contract value of about SEK 15.5 million over five years. In Sweden, at the end of the quarter we signed new projects with the Swedish Armed Forces for a project with an initial call-off of SEK 16 million for delivery during 2025 and 2026. Both of these projects are examples of the growing capability build-up in Europe, and we have several additional opportunities in other countries that we are working to close during 2025. 

APAC 
In APAC, work progressed according to plan during the quarter, and key deals are still expected in the second half of 2025. Our relationship with the Australian Defence Force is strong, and our support for their largest exercise, Talisman Sabre 25, is now entering its final phase. Deliveries of this kind are both profitable and strategically important, and they also give Exonaut exposure to participants from 19 countries worldwide. This creates interesting business opportunities, especially given the increased focus on capability development in the defense sector. The team is actively working to convert this interest into concrete results. 

We have also won a contract with the Australia–New Zealand Counter-Terrorism Committee (ANZCTC) for structured exercises and training in counter-terrorism. Exonaut will be used in local and regional exercises in Australia and surrounding countries. With an initial annual license value of approximately SEK 3.5 million, it is not significant in size itself, but it serves as a door opener for additional opportunities in this area globally. 

Expert Services 
Our Expert Services offering continues to recover well compared to last year. During the quarter, growth was somewhat slower as we experienced a lack of resources to deliver, which reduces output in a consultancy business. The positive aspect is that margins continue to increase – our ACOR (average charge-out rate) is higher than ever and has risen by more than 20% since the same quarter last year. This, combined with a strong order book and continued high interest, points to promising opportunities for the rest of the year. 

Looking Ahead 
We continue the work to transform 4C into an AI-driven product company, and during the quarter we have made significant progress. The recruitment of Mattias Altin as CTO in the first quarter has already had noticeable effects within the organization and is creating exciting prospects for the future. Today, the entire organization is driven by and toward the understanding that AI is a key function in what we do and must be central to our work moving forward. Externally, we have significant advantages through our domain knowledge, accreditations, and experience with security and information assurance, which give us a head start in the market. Internally as well, this is a major focus – we are working to become smarter, faster, and better. We have also appointed a CAIO (Chief AI Officer) this quarter with full focus on an “AI-first” approach for both our products to the market and our internal processes. My vision is clear: I see that the ongoing technological revolution will fundamentally change how software is built, sold, and maintained, and we are ahead in that race in the market today. 

We view the second quarter as a temporary break in the trend regarding profitability, but with continued growth in a period marked by macroeconomic uncertainty and delayed business decisions. The extensive government investments being made in our areas of operation have not yet fully materialized into contracts, but we now see clear signs that this is beginning to change. I remain optimistic about 2025 and believe that, with strong operational performance in the second half of the year, we are well positioned to continue growing with improved profitability. 

Jonas Jonsson
CEO

Invitation to the Presentation of 4C Group’s Interim Report, January - June 2025
Later today, Friday 18 July at 09:30 (CEST), 4C Group will host a live-streamed presentation of the interim report for the second quarter of 2025.
The presentation will be conducted in English and led by CEO Jonas Jonsson and CFO Veronica Wallin, followed by a Q&A session.
Register here