Strongpoint Q1 2025: Key Takeaways

Recurring Revenue Up, Margins Recovering, and UK Pilots Expanding

StrongPoint’s Q1 2025 results reflect steady progress on long-term strategic priorities, including a sharp rise in recurring revenue, promising pilot projects, and continued expansion in key European markets. Despite flat topline performance due to a tough comparison in Norway, margin improvements and operational wins point to encouraging underlying momentum.

Index

1. Financial Highlights

2. Growth in Recurring Revenue

3. Regional Performance

4. Strategic Projects and Pilots

5. Partnership Developments

6. Outlook and Long-Term Vision

---

1. Financial Highlights

• Revenue: NOK 346.6 million, down 3% YoY (Q1 2024: NOK 359 million), mainly due to a one-off ESL rollout in Norway last year.

• EBITDA: Improved to NOK 10.1 million from -NOK 6.2 million YoY, with a margin of 2.9%.

• Operating Cash Flow: NOK 8.3 million.

• Recurring Revenue (LTM): NOK 372.3 million, up 17% YoY.

• Net Interest-Bearing Debt: Increased to NOK 71.9 million (up NOK 12 million from Q4 2024).

"While Q1 revenue was down 3%, this decline is fully explained by a large Electronic Shelf Label (ESL) tag replacement for a Norwegian grocery retailer last year." – Jacob Tveraabak, CEO

---

2. Growth in Recurring Revenue

• License revenue grew 68%, fueled by:

  • Strong growth in order picking solutions (Sainsbury’s).

  • Self-checkout license revenue (Baltics).

  • Third-party licenses.

• Recurring revenue now represents approximately one-third of total revenue.

"We're increasingly seeking to grow the share of recurring revenue to create a predictable business going forward."

---

3. Regional Performance

• Baltics: Revenue up 83% YoY, driven by self-checkout rollouts to IKI and Rimi.

• UK & Ireland: Revenue up 16%, first ESL and AutoStore revenues recorded.

• Sweden: Revenue up 28%, driven by ESL rollout for Alphamega (Cyprus).

• Norway: Revenue down 53% due to ESL comparison base.

"Sweden and the UK & Ireland business units displayed a healthy growth of 28% and 16%, respectively."

---

4. Strategic Projects and Pilots

• Sainsbury’s Order Picking:

  • Now live in a handful of stores.

  • Full rollout (~300 stores) pushed to summer 2026 due to U.K. retail freeze periods.

  • Financial impact minimal due to minimum volume clauses.

"We’ve set up a rig now that’s ready to handle both Sainsbury’s and others."

• Vensafe Pilots (UK):