EU and US could reach trade deal this weekend - Reuters
Elliptic Labs (OL:ELABS) shares rose 6.79% to NOK 12.9 ahead of the company’s Q1 2025 presentation on May 22, as investors anticipated continued momentum following the company’s strong performance in Q4 2024. The AI software platform provider reported 20% year-over-year revenue growth in Q1, though at a more moderate pace compared to the exceptional 416% growth seen in the previous quarter.
Quarterly Performance Highlights
Elliptic Labs reported Q1 2025 revenue from customers of NOK 26.6 million, representing a 20% increase from NOK 22.2 million in Q1 2024. While EBITDA remained negative at NOK -1.6 million, the company generated positive operating cash flow of NOK 12.1 million and maintained a stable cash position of NOK 76.8 million, slightly up from NOK 76.4 million at the end of 2024.
As shown in the following revenue growth chart, the company has demonstrated consistent year-over-year improvement despite some quarterly fluctuations:
The company acknowledged that revenue timing continues to fluctuate due to milestone payments, product launches, and market shipments. However, the overall trend shows strong growth, with total revenues increasing 56.2% year-on-year on a running twelve-month basis, while operating expenses grew by just 6.1% over the same period.
This efficient cost management is illustrated in the following chart showing how revenue growth is outpacing expense growth:
Product and Partnership Expansion
Elliptic Labs reported significant momentum in product launches, with 23 laptop models launched year-to-date in 2025, including 7 with dual-sensor configuration. This already surpasses the total laptop launches for all of 2024 by more than 50%. Additionally, 23 smartphones were launched to date in 2025, with firm commitments secured for an additional 45 models.
The company’s smartphone deployment has shown consistent growth over time, as illustrated in this cumulative launch chart:
In total, Elliptic Labs has launched its technology on 185 smartphones and 56 laptop models since 2016. The company’s AI Virtual Smart Sensors have been deployed across 23 laptops year-to-date, up from 16 AI Virtual Smart Sensors across 15 laptops in FY 2024.
The following chart details this model and product expansion:
The company also announced an expanding partnership with Intel (NASDAQ:INTC), with Elliptic Labs’ AI Virtual Smart Sensors bringing AI features to Intel’s next-generation AI chips, CPUs, and laptops. This aligns with Intel’s software-first AI focus and Elliptic Labs’ AI platform strategy.
At Mobile World Congress Barcelona 2025, the company unveiled its new AI Virtual Tap-to-Share Sensor, which enables easy sharing of photos and contact information between iOS and Android devices with a simple tap, without requiring pre-existing connections.
Financial Analysis
Elliptic Labs’ condensed profit and loss statement shows the 20% year-over-year revenue growth, with total operating costs of NOK 28.6 million resulting in the NOK -1.6 million EBITDA figure:
The company’s balance sheet remains strong with an equity ratio stable at 90%, reflecting a solid financial foundation. Current assets showed an NOK 18.5 million decrease in trade receivables and an NOK 1.9 million increase in other receivables, while liabilities remained flat.
The positive operating cash flow of NOK 12.1 million helped strengthen the company’s cash position, as illustrated in this cash flow bridge:
Strategic Outlook
Elliptic Labs continues to build on its AI platform, which has been deployed on over 500 million devices. The company’s strategy focuses on device interoperability and contextually aware AI agents, while replacing hardware sensors to reduce cost and power consumption.
The following diagram illustrates how the AI platform builds on its core to deliver more value to end users:
Looking ahead, Elliptic Labs has set a midterm target of NOK 500 million in revenue with an EBITDA margin exceeding 50%. The company plans to achieve this by building on existing contracts, expanding its position with multiple models across more customers, and increasing the number of AI Virtual Smart Sensors per device.
The company’s growth strategy is outlined in this roadmap:
Elliptic Labs maintains its focus on three key markets: smartphones, laptops, and IoT devices. With 3 of the top 5 OEMs already as customers and continued partnerships with Qualcomm (NASDAQ:QCOM) and MediaTek, the company is well-positioned to capitalize on the growing demand for AI-powered solutions that make devices "smarter, interoperable, more human- and environmentally-friendly."
Following the strong Q4 2024 performance that saw 416% year-over-year revenue growth, Elliptic Labs’ more moderate but still solid Q1 2025 results demonstrate the company’s ability to maintain growth momentum while continuing to expand its product portfolio and strategic partnerships.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.