Smart Eye Interim Report Q3 January–September 2025

July - September 2025

• Net sales amounted to SEK 99.1 (79.1) million, an increase of 25%. Organic growth was a solid 33% in the quarter. FX impacted sales with SEK -6.4 million in the quarter. 
• Gross profit amounted to SEK 86.4 (70.5) million, and gross margin amounted to 87% (89%). 
• EBITDA improved to SEK 11.5 (-17.4) million. FX impacted EBITDA with SEK -2.7 million. 
• Operating results amounted to SEK -29.9 (-61.5) million, whereas the amortization of the surplus value, regarding acquisition of Affectiva and iMotions, amounted to SEK -26.2 (-28.8) million. 
• Result after tax amounted to SEK -30.7 (-53.9) million. Recognized deferred tax income offset higher interest expenses in the quarter. 
• Number of shares has increased to 37,953,933 due to issuing new shares referring to the share incentive program 2022. 
• Cash and cash equivalents amounted to SEK 24.7 million at the end of September. The available cash ending balance, including unutilized credit facilities, amounted to SEK 106.5 million. In September the company acquired a new credit facility of SEK 50.0 million. 
• During the quarter Smart Eye has been nominated as Software Tier-1 for a North American car manufacturer. After the quarter, nomination committee of Smart Eye have been appointed. 

January - September 2025

• Net sales amounted to SEK 281.3 (254.8) million, an increase of 10% compared to the corresponding period the previous year. Organic growth amounted to 16% and the FX affected the Net Sales negative with SEK -14.4 million in the period. 
• Gross profit amounted to SEK 249.1 (228.8) million, an improvement of SEK 20.3 million compared to last year. Gross margin amounted to 89% (90%). 
• EBITDA improved to SEK -5.4 (-63.7) million. FX had a negative impact on EBITDA with SEK -9.5 million. Without the FX impact, the company would have been able to report an accumulated positive EBITDA YTD in September. 
• Operating results amounted to SEK -131.9 (-187.2) million, whereas the amortization of the surplus value, regarding acquisition of Affectiva and iMotions, amounted to SEK -81.7 (-86.5) million. 
• Result after tax amounted to SEK -123.2 (-164.6) million. Recognized deferred tax income offset higher interest expenses in the period. 

Comments from the CEO

The third quarter saw increased growth levels. Last quarter the organic growth rate excluding FX-effects was 12%, this quarter it increased to 33%. Both our business areas were advancing well, Behavioral Research with 18% and Automotive with 61%. The strong growth is almost exactly at the anticipated level thanks to the fact that the visibility of the rollout of our customers’ production programs have increased over time. Most of the growth in the business area Automotive comes from licenses. Since they come with 100% gross profit, the EBITDA increased accordingly, up to +11,5 MSEK. Without FX effects, comparable EBITDA came in at 14 MSEK, 32 MSEK better than the same quarter last year. We are truly on the right track. The OPEX was at the planned level. No further savings are expected at this point in time. 

Automotive 
The license revenues continue to rise, thanks to the rollout of more and more car programs. Although many of our customers have faced delays, the approaching EU regulatory deadline in July 2026 is now driving production forward — cars must start rolling out of the factories. This is why we are growing with 61% organically, and the license revenue growth is well above 150%. We have exceeded 105 car models that have entered into production with 15 OEMs. 

We are also seeing green shoots for our fleet and aftermarket business AIS. The order intake has increased, and we are starting to ramp up the first OEM programs in Q4. Commercial vehicles are likewise affected by the EU rules coming into effect mid next year. 

Behavioral Research 
The business area made a strong comeback after the slow start of the year. We are increasing our market share in a very challenging environment, growing at a solid 18% organically. 

It’s especially our multimodal software solutions that are gaining ground, indicating that a more holistic understanding of human behavior is taking hold, supporting long-term structural growth. 

At these levels we are increasing our market share. The business area is currently growing with profitability and positive cash flow. 

Final Words 
Q3 was the quarter where we expected to be EBITDA positive for the first time in a decade, but the strong ramp up helped us to achieve this already one quarter earlier. Now in the third quarter we are solidly on the positive side with +11.5 MSEK and we are not looking back. We expect to have an even stronger Q4 fueled by more licenses and stronger Behavioral Research. We will maintain tight cost control. As license revenue grows, our cash flow will steadily improve. We have a conservative plan in place for how to finance the company in the near term as we are slowly but surely reaching firm ground, the first company in the industry to do so. We ended the quarter with 107 MSEK in cash and credit facilities, sufficient for now. 

Smart Eye has bridged the gap of scaling up the business, creating a solid foundation for future growth, unique in the industry. The consolidation of the Interior Sensing industry is ongoing. Several companies have either merged or sold whole or parts of their business to industry peers. We monitor the development closely, but only if exceptional opportunities occur, to further secure our leadership, will we consider participating actively. 

Martin Krantz CEO Smart Eye 

Find the full report and all previous financial reports at https://smarteye.se/investors/financial-reports/

The company will comment on its quarterly results during the earnings call hosted by Redeye, taking place live online at 11:00 on November 14, where the CEO and CFO will present the results and answer questions.