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Introduction & Market Context
Hemnet Group AB (STO:HEM) reported strong financial results for the second quarter of 2025, with net sales increasing 19.4% year-over-year to SEK 483.5 million despite challenging market conditions. The Swedish property portal continues to demonstrate resilience in a softening real estate market characterized by macroeconomic uncertainty, all-time high supply, and record-long sales times.
The company’s stock closed at SEK 289 on July 17, 2025, up 2.12% ahead of the earnings presentation, but still well below its 52-week high of SEK 430.2. This follows a 10.61% decline after Q1 results despite strong performance, suggesting continued investor caution about the broader real estate market outlook.
Quarterly Performance Highlights
Hemnet’s Q2 2025 results showcase the company’s ability to drive revenue growth despite market headwinds. The 19.4% net sales increase was primarily driven by a remarkable 34.7% growth in Average Revenue Per Listing (ARPL), which reached SEK 8,451.
As shown in the following chart of quarterly and LTM ARPL growth:
This substantial ARPL growth more than offset a 9.3% year-over-year decline in published listings, which fell to 50,500 in Q2. The listing decline reflects a softer market shaped by macroeconomic uncertainty and seasonal slowdown occurring earlier and more noticeably than in previous years.
The following chart illustrates the published listings trend:
Profitability remained strong, with EBITDA growing 20.7% year-over-year to SEK 260.9 million, representing a 54.0% margin – an improvement of 0.6 percentage points compared to Q2 2024. This margin expansion demonstrates Hemnet’s operating leverage and efficient cost management.
The comprehensive financial performance is captured in this summary:
Strategic Initiatives
A key driver of Hemnet’s revenue growth was the successful launch of Hemnet Max on April 1, 2025. This premium listing package has shown strong initial results, delivering significant value to sellers compared to the standard Premium package.
Initial data from Stockholm shows Hemnet Max listings receiving 75% more visits, 40% higher bid premiums, and 80% more saved listings compared to Premium listings. Similar strong results were observed in Gothenburg, with even more pronounced benefits in some metrics.
The following image illustrates Hemnet Max’s performance metrics:
Beyond Hemnet Max, the company continues to invest in product development to enhance user experience. Recent improvements include simplified sharing, improved broker search, real-time notifications, saved search enhancements, and vertical image gallery, among others.
Hemnet’s strategic investments are reinforcing its dominant market position in Sweden. The company confirmed that 89% of all properties sold in 2024 were advertised on Hemnet at some point, consistent with its historical performance of approximately 9 out of 10 properties.
The following chart validates Hemnet’s market leadership:
User preference data further strengthens Hemnet’s competitive position, with 83% considering it the first choice when buying property, 87% when selling, and 82% rating it as the most user-friendly property platform.
Detailed Financial Analysis
Breaking down revenue by customer segment reveals strong performance across most categories. Property sellers, the largest segment, grew 22% to SEK 427.4 million, driven by increased demand for value-added services despite the decline in listings. Real estate agents and property developers saw modest growth of 4% and 7% respectively, while advertiser revenue declined 10% amid challenging display advertising conditions.
The following chart details net sales growth by customer segment:
Examining the EBITDA bridge from Q2 2024 to Q2 2025 provides insight into profitability drivers. The SEK 78.5 million increase in net sales was partially offset by higher compensation to real estate agents (-SEK 21.4 million), increased external expenses (-SEK 6.6 million) primarily from marketing and license costs, and higher personnel costs (-SEK 4.8 million) due to wage inflation and additional hires.
Cash flow generation remains robust, with last twelve months (LTM) free cash flow increasing 34.0% year-over-year to SEK 775.1 million, representing a high cash conversion rate of 96.6%. The company maintains a conservative financial position with leverage at 0.6x, slightly down from 0.7x in Q2 2024.
The following chart shows Hemnet’s strong cash flow performance and share buyback activity:
Forward-Looking Statements
Looking ahead, Hemnet remains focused on delivering value to agents, buyers, and sellers despite market headwinds. The company plans to continue targeted investments in product development and marketing to further strengthen its market position.
"Solid financial performance in Q2 with continued growth despite a softer property market and lower listing volumes," noted Jonas Gustafsson, CEO of Hemnet. "Market data confirms our #1 position - 9 out of 10 properties sold in 2024 on Hemnet."
The company enters the second half of 2025 with a strong foundation, though challenges remain in the broader real estate market. The continued success of premium offerings like Hemnet Max will be crucial to maintaining growth momentum if listing volumes remain under pressure.
Compared to Q1 2025, when net sales grew 30% year-over-year, Q2’s 19.4% growth represents a slowdown, though still impressive given market conditions. However, EBITDA margin improved significantly from 47.9% in Q1 to 54.0% in Q2, demonstrating enhanced operational efficiency.
As Hemnet navigates the challenging market environment, its dominant position, innovative product offerings, and strong financial performance position it well to continue delivering value to both users and shareholders.
Full presentation:
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