iZafe Group Q2 Interim Report, April-June 2025
STOCKHOLM, SE / ACCESS Newswire / August 29, 2025 /iZafe Group (STO:IZAFE-B) - iZafe Group AB (publ.) presents today, August 29th, its report for the second quarter.
Financial Performance in Summary
Total net revenue for the quarter amounted to 1,136 TSEK (168), now primarily consisting of recurring license revenues, with only a small share attributable to hardware sales. This is in clear contrast to the same period last year, when license revenues were marginal. The development reflects that our business model is now firmly established, providing a stable foundation of recurring revenues.
Operating result (EBIT) for the quarter amounted to -4,277 TSEK (-4,011).
Operating result before depreciation and amortization (EBITDA) for the quarter amounted to -3,295 TSEK (-3,027). The outcome is primarily explained by strategic inventory adjustments, where older components no longer relevant for production have been phased out, as well as continued investments in development. These initiatives are part of our long-term strategy aimed at strengthening the product portfolio and securing the company 's future growth and success.
Result after financial items for the quarter amounted to -4,503 TSEK (-4,037).
Cash flow from operating activities for the quarter amounted to -1,715 TSEK (-4,155).
Earnings per share for the quarter before/after dilution amounted to -0.01 SEK (-0.02).
Equity per share at the end of the period amounted to 0.03 SEK (0.07).
The equity ratio at the end of the period was 50.1% (73.3%).
Significant events during the quarter
iZafe Group AB has signed a Letter of Intent (LOI) with Germany-based JDM Innovation GmbH, part of the PHOENIX group, to integrate the Dosell medication robot with the Smila dose dispenser into a joint digital platform for in-home medication management. The collaboration targets municipalities and healthcare providers across Europe, aiming to simplify implementation, improve adherence, and free up time in healthcare.
iZafe Group AB has reached a significant milestone with over 1,000 active Dosell units in operation across Europe. This marks a breakthrough for the company 's commitment to safe and digital in-home medication management and demonstrates that the solution is now established and scalable. The milestone was celebrated with an investor event in Stockholm on June 12.
iZafe Group AB has carried out a directed share issue of approximately 10 MSEK through the issuance of 43.48 million Class B shares at a subscription price of 0.23 SEK per share. The proceeds will be used to repay a loan to Exelity AB, as well as to strengthen working capital and finance continued growth and strategic investments.
Significant events after the end of the quarter
iZafe Group AB has continued to grow during the quarter with an increase in billable Dosell units and strong demand in Sweden, the Netherlands, and Spain. Three new municipalities have initiated operations, the partner TCCN is launching Dosell TV in the Netherlands, and over 50 pharmacies in Spain have joined the Savioo Home concept. The company is experiencing growing commercial momentum and is engaged in discussions with new partners for continued expansion.
iZafe Group AB has launched an exclusive shareholder offer in which private individuals holding shares worth at least SEK 50,000 are offered a free Dosell with a subscription. The aim is to reward loyalty and give more people the opportunity to experience the benefits of the company 's solution for safe and adherent medication management.
Forecast
In this report, we present a forecast graph illustrating our expected growth in both ARR and active Dosell units over the coming years. The forecast is based on our current markets and key performance indicators, outlining a clear path toward an exponential increase in recurring revenue as more units become activated. By the end of 2024, our ARR reached approximately 1.7 MSEK, reflecting a 326% increase compared to the previous year.
In 2025, this growth is expected to accelerate further, with ARR projected to reach 10 MSEK by year-end, a 352% increase. Beyond that, ARR is expected to continue growing rapidly, more than eightfold by 2029, when we anticipate exceeding 85 MSEK. We will track this forecast on a quarterly basis to provide our shareholders with a clear view of our actual progress and how we are advancing toward our financial goals.
2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
ARR (MSEK) | 0.3 | 1.7 | 10 | 22.5 | 42.3 | 63.9 | 85.5 |
Growth of Dosells | 0% | 326% | 352% | 125% | 69% | 41% | 29% |
Comments from the CEO
iZafe Group is in the midst of a decisive transition - from product development and market cultivation to tangible growth and operational impact. The second quarter clearly demonstrates that our business model works: we are growing, we are scaling, and we have now established a recurring revenue base that provides both stability and predictability. At the same time, we are entering a phase with even greater potential, where our market position can be significantly strengthened.
Over 30% ARR growth since Q1 - more than 250% compared to last year
Our recurring revenue base (ARR) has grown by more than 30% since Q1 and is now over two and a half times higher than the same period last year. This confirms that our solution is not only gaining ground - it is actively used and perceived as value-creating. We see the results in the form of more customers, across more regions, and an increasing number of units per customer.
The Netherlands - stress test, stability and continued expansion
In the Netherlands, the number of active units increased by more than 45% during the quarter. Our partner TCCN demonstrates with great commitment how Dosell can scale rapidly when organization and demand work hand in hand. In July, we faced an unexpected stress test when our network provider experienced two major outages. Thanks to swift communication, effective crisis management, and close collaboration with our partners, the impact was minimized.
The incident served as confirmation of both robustness and collaboration - and reinforces our conviction that we have a solution capable of withstanding even unforeseen challenges. To further reduce future risks, we are now strengthening our technical redundancy. Notably, users connected via WiFi were not affected at all - a clear argument for the value of offering multiple connectivity options.
Sweden - stable base and strong pipeline for the autumn
Despite the usual summer slowdown in the municipal sector, progress in Sweden continued. Following a successful pilot, one municipality chose to terminate its previous supplier and sign a direct agreement with Dosell, including an initial order of 30 units. Three new municipalities are scheduled to launch in August, and 15 digital demonstrations are already booked.
We have thus laid the foundation for stronger geographical coverage and broader market trust - developments expected to drive a significant increase in volume during the second half of the year.
Europe - more markets, deeper partnerships
The second quarter also marked the beginning of the next phase in our European expansion. In Spain, our partner Ti Medi has taken a larger step by beginning direct collaborations with pharmacy chains to scale the use of Dosell. Interest is growing - even though the concept of medication dispensers is still new to the market. However, we see clear signs of emerging understanding and believe we are approaching a "ketchup effect." Ti Medi works methodically, has a strong network, and is the right partner to drive progress in this important market.
In Finland, we have signed a partnership agreement with AddSecure Smart Care Oy, which has already placed its first order and has an ambitious launch plan for the autumn. This marks an important milestone in our Nordic expansion.
In addition, we signed a Letter of Intent with JDM Innovation (part of the Phoenix Group), with the aim of establishing a strategic partnership for broader European expansion. By combining our technology with their logistics expertise and established network within pharmacies and pharmaceuticals, we see strong potential to scale Dosell further.
At the same time, we continue to evaluate several other markets. Our proven business model, technical platform, and growing partner structure give us a unique position for rapid expansion as soon as the right opportunities arise.
Strengthened capital base and increased shareholder engagement
During the quarter, we completed a directed share issue of approximately 10 MSEK, which strengthens our financial position and enables continued execution of our growth strategy. Our exclusive shareholder offer - giving the opportunity to test Dosell with a free subscription - has been met with strong interest, a clear sign of the growing engagement around our solution. It is also worth noting that a loan maturing on June 30 was repaid at the beginning of July, which impacts the cash position reported in this report.
Autumn 2025 - from proof to expansion
We enter the autumn with strong conditions: a product that works, a business model that scales, and a market showing increased interest. But it is now that the next phase begins - where business dialogues must be converted into concrete launches, and pilots into large-scale implementations.
The target of reaching 10 MSEK in ARR before the end of the year remains firm - and we are on track. At the same time, continued execution, focus, and close collaboration between our team, partners, and users are required to succeed.
I would like to extend a big thank you to everyone who is part of this journey. Together we are building the future of medication management - and we are only just getting started.
Anders Segerström
Chief Executive Officer, iZafe Group
Contacts
Anders Segerström, Chief Executive Officer
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12
iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm
E-mail: ir@izafegroup.com
www.izafegroup.com
eucaps.com/izafe-group
About iZafe Group AB (publ.)
iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.
The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution Pilloxa with the smart pillbox. The company 's solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.
The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.
iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. The company 's Certified Adviser is DNB Carnegie Investment Bank AB. Further information is available at www.izafegroup.com
This information is information that iZafe Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-29 08:30 CEST.
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Interim Report Q2 2025
interview Q2 2025
SOURCE: iZafe Group
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