Stockholm, 16 May 2025 | Today, Safello Group AB ("Safello") publishes the company's interim report for the first quarter (1 January-31 March) 2025. The report is attached hereto and can be found on https://safello.com/investors/reports.

Summary of the first quarter (Jan-Mar 2025)

• Net turnover increased by 1 % to SEK 194.1 million (193.1).
• Gross profit decreased by 37 % to SEK 8.8 million (14.1), primarily due to weak market performance and a decline in the price of bitcoin and other crypto assets. The price decline in crypto assets leads to lower revenues from withdrawal fees, as these are denominated in crypto, and also affects the value of the company's inventory of crypto assets. The change in inventory contributed negatively during the period with SEK -2.3 million, compared to a positive effect of SEK 1.7 million in the same period last year, and accounted for SEK 3.9 million of the total change in gross profit. Measures to reduce the company's earnings volatility related to inventory changes have been taken through new agreements and arrangements with liquidity providers, which are expected to have partial effect during the second quarter. The decline in results was further affected by gains on the sale of long-term crypto assets, which amounted to SEK 0.0 million in the period compared to SEK 0.7 million in the corresponding period last year.
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK -3.7 million (4.7), reflecting an increased cost base, partly due to expenses related to the implementation of MiCA, DORA and other regulations, and partly due to investments in product development and expanded developer resources. These strategic initiatives have, among other things, led to higher consultancy costs, of which approximately SEK 0.6 million in the period are non-recurring items.
• Operating profit amounted to -5.3 MSEK (4.7), affected by a write-down of the company's long-term holdings in Ethereum, which were valued at market value at the end of the reporting period, amounting to -1.0 MSEK (0.5).
• The net result for the period was SEK -5.4 million (4.7).
• Earnings per share based on the average number of shares (20,449,600 shares) amounted to SEK -0.27 (0.23).
• Earnings per share based on the average number of shares after potential dilution (21,572,847 shares) amounted to SEK -0.25 (0.21).
• The number of orders decreased by 9 % to 47,601 (52,458).
• The average order value for purchases was SEK 2,804 (2,601), an increase of 8 %, while the average order value for sales was SEK 9,790 (9,022), an increase of 9 %.
• The total number of active customers was 23,663 (28,341), of which 4,680 (6,813) were new active customers.
• The cash balance at the end of the first quarter amounted to SEK 22.9 million (compared to SEK 24.9 million as of 31 December 2024), as well as 10.4 BTC (10.4) and 113.4 ETH (112.6) in liquid crypto assets. The book value of long-term crypto assets amounted to SEK 6.2 million (7.2), while the market value was SEK 10.5 million (14.8) at the end of the quarter. This represents an unrealized value gain of SEK 4.3 million (7.6). The change in book value during the period is primarily explained by an impairment of the ETH holdings of SEK -1.0 million (0.5), to reflect the market value as of 31 March 2025.

Significant events during the first quarter

• On 15 January, Safello issued a reverse profit warning due to a strong increase in EBITDA and operating profit during the fourth quarter of 2024. The improvement in results for the fourth quarter of 2024 was primarily attributable to increased revenues driven by a higher number of orders and larger volumes, as well as the strong price performance of Bitcoin and other crypto assets. 
• In early March, Safello entered into a strategic partnership agreement with Deutsche Digital Assets GmbH and its subsidiary DDA ETP AG ("DDA"), under which DDA will issue crypto-based exchange-traded products (ETPs) under the Safello brand. 

Other events in the first quarter

• Safello entered into an agreement  with Talos, a provider of crypto trading software solutions.
• Safello expanded its offering of digital assets on its platform with Arbitrum (ARB), Optimism (OP), Popcat (SOL), OFFICIAL TRUMP (TRUMP), and Official Melania Meme (MELANIA)
• Safello entered into an agreement with Zumo, a B2B platform for digital assets, to facilitate the disclosure of sustainability indicators in line with MiCA requirements.

Significant events after the end of the reporting period

• On 24 April, Safello's Annual General Meeting was held in Stockholm. The main decisions are presented in the AGM report from 24 April, which is published on the company's website. 

Other events after the end of the quarter

• Safello entered into a partnership with Bitvavo for access to deeper liquidity and trading pairs.

• Safello submitted its application for authorization as a crypto-asset service provider under the EU's Markets in Crypto-Assets Regulation (MiCA). 

• Launch of real-time order book including support for both market and limit orders at market-leading prices.

• The Swedish Police Authority extended their framework agreement with Safello for an additional twelve-month period.

• Safello has reallocated long-term crypto asset from Bitcoin to TAO to support its decentralized AI thesis

"During a quarter marked by market uncertainty and declining crypto prices, we have continued to deliver on our strategic milestones and laid the foundation for future growth. With the launch of our new orderbook, submission of our MiCA application, and the establishment of a new revenue-generating business area relating to ETP's, along with preparations for yet another business area during Q2, we are taking steps toward our vision of becoming the next-generation crypto bank," says Emelie Moritz, CEO of Safello.

For environmental and cost reasons, Safello Group AB has decided not to print the report. A printout may be distributed to shareholders upon request.

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This information is such that Safello Group AB is required to disclose in accordance with the EU Market Abuse Regulation. The information was provided by the contact person below, for publication at 08.00 CEST on 16 May 2025.

For more information, please contact
Viktoria Berglund Blohmé, Head of Finance, ir@safello.com

Certified Adviser
Amudova AB is Safello's certified adviser.

Safello is the leading cryptocurrency exchange in the Nordics, with over 404,000 users. The company is empowering financial independence by making crypto accessible to everyone. Safello offers a secure and easy solution for buying, selling, storing, as well as depositing and withdrawing cryptocurrencies directly from the blockchain - ensuring seamless transactions at industry-leading speeds. Operating in Sweden, Safello has been registered as a financial institution with Finansinspektionen (Swedish Financial Supervisory Authority) since 2013 and is listed at Nasdaq First North Growth Market since 2021. For more information visit www.safello.com.