Acast Q1 2025 slides: 30% revenue growth with North America leading the charge

Introduction & Market Context

Acast AB (ACAST) presented its first quarter 2025 financial results on May 6, showcasing strong revenue growth and continued progress toward profitability. The podcast technology company, which positions itself as the leading player in the podcasting industry, reported significant expansion in North America while maintaining its solid European base.

The company’s stock closed at SEK 15.12 on May 5, 2025, up 3.7% ahead of the earnings presentation, reflecting positive market sentiment. Acast’s platform currently hosts more than 140,000 shows, generates over 1 billion listens per quarter, and serves more than 3,300 advertisers.

Quarterly Performance Highlights

Acast delivered impressive financial results for Q1 2025, with net sales growing 30% year-over-year to SEK 535 million. The company achieved 26% organic growth when adjusting for currency effects and the acquisition of Wonder Media Network.

As shown in the following chart of quarterly net sales growth:

Gross profit increased by 26% year-over-year to SEK 200 million, though the gross margin contracted slightly to 37% from 39% in Q1 2024. This margin compression was attributed to the rapid expansion in North America, which typically carries lower margins but offers significant growth potential.

The following visualization illustrates the gross profit trend:

Despite a slight 1% year-over-year decrease in total listens to 1,109 million, Acast significantly improved its monetization efficiency. Average Revenue Per Listen (ARPL) grew 31% year-over-year to SEK 0.48, demonstrating the company’s ability to extract more value from its content.

The relationship between listens and revenue per listen is depicted in this chart:

Regional Performance Analysis

North America emerged as Acast’s primary growth engine in Q1 2025, with net sales surging 65% year-over-year to SEK 203 million. The region also achieved a positive contribution profit of SEK 4 million (2% margin), compared to a loss in the same period last year.

Europe remained Acast’s largest market, with net sales of SEK 295 million, up 17% year-over-year. The region generated a contribution profit of SEK 62 million, maintaining a healthy 21% margin despite a slight decrease from 24% in Q1 2024.

Other markets showed stable performance with net sales of SEK 38 million, virtually unchanged from the previous year, and a contribution profit margin holding steady at 6%.

The following regional breakdown illustrates these performance differences:

Profitability and Cash Flow Trends

Acast continued its march toward profitability in Q1 2025. Adjusted EBITDA improved to negative SEK 3 million, representing a -1% margin compared to -4% in Q1 2024. When adjusted for Wonder Media Network transaction costs and expenses related to a future re-listing, the adjusted EBITDA was negative SEK 3.3 million.

The company’s trailing twelve-month adjusted EBITDA turned positive at SEK 38 million (2% margin), showing consistent improvement over the past eight quarters:

Cash flow from operating activities was positive at SEK 29 million in Q1 2025, with SEK 17 million coming from positive working capital changes. The trailing twelve-month operating cash flow reached SEK 79 million, demonstrating a strong positive trend:

Acast maintained a solid cash position of SEK 652 million as of March 31, 2025, providing financial flexibility for future growth initiatives.

Updated Financial Targets and Outlook

In April 2025, Acast updated its financial targets, reflecting confidence in its growth trajectory and path to sustained profitability:

The company now targets 15% organic net sales CAGR from 2025 to 2028, an adjusted EBITDA margin of 3-5% for 2025, and positive cash flow from operating activities in 2025.

These targets are supported by Acast’s ecosystem approach, which connects creators, audiences, and advertisers in a virtuous cycle. The company has paid out $470 million USD to creators to date and reaches more than 100 million unique listeners monthly.

Emily Villatte, Chief Financial Officer & Deputy CEO, presented the results, emphasizing the company’s strong position in the podcasting market and its ability to monetize content effectively through both major media partnerships and niche shows with engaged audiences.

As Acast continues to expand globally, North America represents the most significant growth opportunity, while Europe provides a stable foundation with higher margins. The company’s improving profitability metrics and positive cash flow trend suggest that its business model is gaining traction and scaling efficiently.

Full presentation:

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