Divio Technologies AB reports annual net sales growth of 35% and positive EBITDA for the full year

SUMMARY OF THE REPORT

Fourth quarter: 1 October 2025 to 31 December 2025	Year to Date: 1 January 2025 to 31 December 2025
MRR at the end of December was KUSD 214 (203), an increase of 5%	Subscription revenue increased by 19% to KSEK 25,766 (21,697)
Subscription revenue decreased by 4% to KSEK 6,509 (6,765)	Professional services revenue increased by 138% to KSEK 8,314 (3,500)
Professional services revenue decreased by 8% to KSEK 2,552 (2,776)	Net sales increased by 35% to KSEK 34,080 (25,197)
Net sales decreased by 5% to KSEK 9,061 (9,541)	EBITDA increased to KSEK 353 (-8,813)
EBITDA increased to KSEK 113 (-8)	EBIT improved to KSEK -5,691 (-15,185)
EBIT increased to KSEK -1,340 (-1,664)	EPS before dilution was SEK -.02 (-0.08)
EPS before dilution was SEK -0.01 (-0.01)
Cash position was KSEK 7,847 (9,273)

Significant events during the quarter

Significant SEK/USD exchange‑rate movements reduced SEK-denominated revenues by approximately 13% compared with the same period last year, while USD‑denominated MRR remained unaffected.
MSEK 7.3 received as part payment for the 2026 advance payment from a large customer.

Significant events after the quarter

MSEK 3.3 received as part payment for the 2026 advance payment from a large customer.
A write‑down of MSEK 54.4 on intercompany loans between the Swedish parent company and its Swiss subsidiary was carried out as part of the 2025 end year closure. The adjustment was made to align the accounting values of the parent and subsidiary companies. This has no impact on the consolidated financials, aside from significantly reducing FX volatility within Net Financial Items going forward.
Notice for EGM to reduce the share capital of Divio Technologies AB by MSEK 14.2 to cover for the loss generated by the above loan write down, effectively reducing the nominal value of the share (kvotvärde) from SEK 0.10 to SEK 0.06. It is noted that this reduction in nominal value will allow management to engage with the convertible loan holders to explore possibilities of converting the outstanding loan and related interest (MSEK 4.6) into equity on market-based terms.

	Fourth quarter (3 months)			Year to date (12 months)
KSEK	2025	2024	%	2025	2024	%
Key Financials
Subscription revenue	6,509	6,765	-4%	25,766	21,697	19%
Professional services revenue	2,552	2,776	-8%	8,314	3,500	138%
Net sales	9,061	9,541	-5%	34,080	25,197	35%
Total revenue	10,055	10,762	-7%	37,662	31,720	19%
Costs	-9,942	-10,770	-8%	-37,310	-40,533	-8%
EBITDA	113	-8	n.m.	353	-8,813	n.m.
Dep. / Am.	-1,453	-1,656	-12%	-6,044	-6,372	-5%
EBIT	-1,340	-1,664	19%	-5,691	-15,185	63%

MRR (KUSD)	214	203	5%
Cash position	7,847	9,273	-15%

CEO COMMENT

2025 has been a real turning point for Divio.

For the first time in our history, we are reporting a positive full-year EBITDA — a major milestone for any tech company. This achievement is the result of an incredible effort by the entire team to grow revenue while improving cost efficiency. At the start of the year, we faced a 12-month EBITDA loss of SEK 9 million, making this turnaround particularly significant.

What makes us especially proud is that we achieved this while shifting our sales focus to our Agency strategy. The transition temporarily slowed growth and was a bold move for a public company, but it has made us stronger. We are now seeing early results: more agencies joining our ecosystem and more projects launching on our platform, with every tenth project becoming a larger deal.

All of this has been achieved with limited sales resources, so it’s early days. But as noted in our latest update, we reported almost USD 2,000 in MRR growth over 40 days. While the amount is still modest, the recurring and sticky nature of the revenue makes even these levels very interesting if we can replicate them for the rest of the year, and with a continued upward trend.

If we look at the Q4 numbers, we see the effect of the above strategy change with only a small 5% growth in USD-nominated MRR, even though YTD Net Revenue increased with a respectable 35%. We also note the large FX effect on SEK / USD, reducing SEK-nominated quarterly revenue numbers by some 13% compared to the same period last year. Without this FX effect, we would have shown growth across the company even if our strategic focus was to kick-start the agency rollout.

As part of our cost restructure, we have also significantly strengthened our management team. Adding experience, seniority, and a lot of energy to the company.

Our interim CFO, Niklas, has done an outstanding job in strengthening financial discipline while also freeing up valuable time for the senior management team, including me. This allows us to focus more intensively on scaling sales and accelerating execution of our growth strategy.

We are also very pleased to have welcomed Ralf as our new CTO. His broad technical expertise, combined with a strong commercial mindset and an extensive network within the agency market, adds significant strategic value. Under Ralf’s leadership, we will now focus on opening up the platform to a broader user base and introducing significant technical innovations, both dedicated to the Agency strategy but also strengthening our data sovereignty offerings. These innovations will not only improve the product but also facilitate our communication and marketing, as they generate increased interest and help us attract new customers.

The volatile geopolitical climate over the past year has also highlighted a massive opportunity: Europe and many other countries are realizing their heavy dependence on US tech companies. While this may be an acceptable corporate risk, it raises serious questions about storing sensitive client data on infrastructure owned or controlled by US providers and potentially subject to political decisions.

This conversation has only just begun, but the trend is quickly accelerating in the same way that European defence initiatives have rapidly gained momentum.

Divio’s proposition has always been that switching between data servers should be easy. We can already offer EU- and Swiss-hosted data. Until the end of last year, interest in this was mostly tied to price optimisation. But looking ahead to 2026, the sentiment has changed completely. What’s especially interesting is that nearly all of our competitors in our space are US-based. Because of that, we’re now analysing how to best capture this opportunity — both from a sales and a product perspective.