Interim Report Q3 2025: Stillfront

Stillfront’s financial performance for the third quarter of 2025 reflects a strategic pivot toward profitability and operational efficiency amidst a challenging revenue environment. The company recorded net revenue of SEK 1,373 million, representing an organic decline of approximately 8% compared to the same period in 2024. This downturn was primarily fueled by headwinds in the North American market and broader currency fluctuations. Despite these top-line pressures, the company successfully transitioned to a net profit of SEK 55 million, marking a significant recovery from the losses incurred in the prior year.

The core of this financial turnaround lies in disciplined cost management and a strategic shift toward higher-margin direct-to-consumer platforms. By aggressively reducing user acquisition spending and executing a comprehensive cost-savings program, the company expanded its adjusted EBITDAC margin to 32%, an 8-percentage-point improvement over the previous year. While regional performance remained uneven—with the MENA and APAC regions demonstrating organic growth while North America struggled—the overall focus on margin expansion allowed the company to exceed market expectations for adjusted EBITDAC.

Balance sheet management remains a central priority, as evidenced by the reduction of net debt to SEK 3,975 million. Although operating cash flow experienced a temporary decline due to negative working capital movements, the company maintains a stable leverage profile with an adjusted ratio of 2.06x, positioning it near its long-term target of 2.0x. By balancing cash settlements with potential share repurchases to manage SEK 1,111 million in earnout provisions, the company is prioritizing deleveraging and long-term financial sustainability over aggressive top-line expansion in the current fiscal climate.