Acast Q2 2025 slides: 32% organic growth as North America becomes largest market

Introduction & Market Context

Acast AB (ACAST) presented its Q2 2025 interim report on July 25, 2025, highlighting strong organic growth and continued progress toward profitability. The podcast technology company, which positions itself at the center of the podcast ecosystem connecting creators, advertisers, and audiences, reported that North America has become its largest market, driving global expansion.

The company maintains a significant presence in the podcast industry with more than 140,000 shows on its platform, creator payouts of $500M USD, and relationships with over 3,300 advertisers. Acast’s reach extends to more than 1 billion listens per quarter and over 100 million unique monthly listeners.

As shown in the following diagram illustrating Acast’s central position in the podcast value chain:

Quarterly Performance Highlights

Acast reported solid financial results for Q2 2025, with net sales growth of 27% year-over-year and organic growth of 32% when adjusted for currency effects. The company achieved an adjusted EBITDA margin of 3%, continuing its trajectory toward sustainable profitability.

The following slide summarizes the key financial highlights for the quarter:

Average Revenue Per Listen (ARPL) showed significant improvement, increasing by 27% year-over-year to reach a record-high SEK 0.55 in Q2 2025. This growth occurred despite relatively flat overall listening numbers, indicating Acast’s success in monetizing its audience more effectively.

As illustrated in this chart tracking ARPL growth over time:

The company’s net sales have maintained a strong growth trajectory over multiple quarters, with Q2 2025 continuing this trend at 27% growth year-over-year:

Gross margin reached 40% in Q2 2025, slightly up from 39% in the same period last year. The company attributed this improvement to product mix optimization, yield management, and scaling against ad tech and distribution costs.

Regional Performance Analysis

North America emerged as the key growth driver for Acast in Q2 2025, with the United States becoming the company’s largest market. Net sales in North America grew from SEK 140 million in Q2 2024 to SEK 238 million in Q2 2025, representing a 70% increase. The region’s contribution profit also improved significantly, rising from SEK 4 million (3% margin) to SEK 25 million (10% margin).

Europe remained Acast’s most profitable region with a contribution profit of SEK 76 million (24% margin), up from SEK 62 million (21% margin) in Q2 2024. Net sales in Europe grew more modestly from SEK 294 million to SEK 319 million.

The regional breakdown of performance is illustrated in the following chart:

Profitability and Cash Flow

Acast continued to improve its adjusted EBITDA, reporting SEK 16 million (3% margin) in Q2 2025 compared to SEK -11 million (-2% margin) in Q2 2024. On a last-twelve-months basis, adjusted EBITDA reached SEK 65 million (3% margin), a substantial improvement from SEK -36 million (-2% margin) a year earlier.

However, the company’s operating expenses were affected by one-off costs related to leadership transitions, including SEK 9 million related to the CPO’s departure and SEK 59 million in items affecting comparability related to the CEO change and future re-listing plans.

The following chart illustrates the continued improvement in adjusted EBITDA:

Cash flow from operating activities was negative at SEK -53 million in Q2 2025, compared to SEK -1 million in Q2 2024. This decline was primarily attributed to SEK 85 million in negative effects from working capital fluctuations. Despite this, the company maintained a strong cash position of SEK 572 million as of June 30, 2025.

Strategic Initiatives

During the quarter, Acast launched its first original production from Acast Creative Studios, which was formed through a merger with Wonder Media Network. The podcast, titled "Mind If We Talk?" was created in partnership with BetterHelp and leverages omnichannel campaigns across video, social media, and audio platforms.

The company also introduced "Smart Recommendations," a new AI-powered tool for advertisers that provides tailored campaign recommendations based on various data points. This tool has been integrated into Acast’s advertising platform to enhance campaign effectiveness.

Forward-Looking Statements

Acast summarized its key takeaways and outlook in the presentation, emphasizing four main points:

1. Maintained growth momentum with 32% organic growth

2. Growth boosted by North America, with the US now being the company’s largest market

3. Advertisers increasingly transacting larger volumes, with new record bookings in two of three top markets

4. Continued underlying profitability improvements with adjusted EBITDA margin of 3%

The company’s next interim report for the period July 1 - September 30, 2025, is expected to be released on October 30, 2025.

Based on the Q1 2025 earnings information, Acast is targeting a 15% organic net sales compound annual growth rate (CAGR) from 2025 to 2028 and is preparing for a Nasdaq main market listing, which aligns with the costs related to "future re-listing" mentioned in the Q2 presentation.

With its strong market position, improving profitability metrics, and strategic focus on the North American market, Acast appears well-positioned to capitalize on the continued growth of the podcast advertising industry, despite the challenges presented by recent leadership transitions.

Full presentation:

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