Stillfront Group Q1 2025 Interim Report

Stillfront Group’s financial performance for the first quarter of 2025 reflects a strategic pivot toward operational efficiency and margin expansion amidst a challenging macroeconomic environment. While the company experienced an 11.8% organic decline in net revenue, totaling SEK 1,545 million, this contraction was largely intentional, driven by a reduction in user acquisition spending and difficult year-over-year comparables in the North American and European markets. Despite lower bookings and a decrease in monthly and daily active users, the organization successfully transitioned to a more profitable model, evidenced by a 12% increase in adjusted EBITDAC and a 5-percentage-point improvement in margins to 26%.

The company’s financial health remains robust, characterized by a successful deleveraging effort that brought the adjusted leverage ratio down to 1.93x, comfortably meeting the internal target of 2.0x. Net debt decreased by SEK 638 million, and the firm achieved a net profit of SEK 23 million, marking a significant recovery from the losses recorded in the same period of the previous year. This stability is supported by a strong cash conversion rate of 0.51 and free cash flow of SEK 194 million, which underscores the effectiveness of current cost-saving initiatives and a growing reliance on direct-to-consumer revenue channels.

Geographically, the portfolio shows divergent performance, with the MENA and APAC regions achieving 2.0% organic growth, contrasting with the broader contraction in Western markets. Operationally, the group continues to refine its portfolio management through a structured framework of key franchises and LiveOps tiers, supported by a shared service model designed to ensure consistent financial reporting across its global business areas. By prioritizing high-value engagement and disciplined capital allocation, the company has demonstrated an ability to improve bottom-line profitability even as it navigates a period of top-line consolidation.