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Introduction & Market Context
Hemnet Group AB (OMX:HEM) delivered strong financial results in the second quarter of 2025, demonstrating resilience in the face of challenging market conditions in Sweden. The company’s stock closed at SEK 222.2, down 0.72% following the July 18 presentation, as investors weighed positive growth metrics against broader market uncertainties.
The Swedish property market continues to face headwinds, with record-long sales times and high supply levels creating friction in the transaction process. Despite these challenges, Hemnet maintained its dominant position, with 89% of all properties sold in Sweden during 2024 being advertised on its platform.
"Demand for higher tier packages drove 19% net sales growth - reinforcing Hemnet’s #1 position despite market headwinds," noted the company in its presentation materials.
Quarterly Performance Highlights
Hemnet reported impressive financial metrics for Q2 2025, with net sales increasing by 19.4% year-over-year to SEK 483.5 million. This growth was primarily driven by a substantial 34.7% increase in Average Revenue Per Listing (ARPL), which reached SEK 8,451.
As shown in the following chart of key financial metrics, the company achieved significant improvements across several performance indicators:
The company’s EBITDA grew by 20.7% to SEK 260.9 million, with the EBITDA margin expanding by 0.6 percentage points to 54.0%. This margin improvement demonstrates Hemnet’s ability to leverage its platform for increased profitability despite market challenges.
The following visualization illustrates the consistent growth in both net sales and EBITDA over recent quarters:
While Hemnet experienced strong revenue growth, it’s worth noting that published listings decreased by 9.3% year-over-year. The company attributed this decline to macroeconomic uncertainty and tougher comparables from the previous year, when interest rate cuts drove accelerated listing activity.
Strategic Initiatives
A key driver of Hemnet’s performance was the successful launch of Hemnet Max on April 1, 2025. This premium service tier offers enhanced visibility features for property listings and has shown impressive early results compared to the company’s standard Premium package.
The following slide highlights the performance metrics of Hemnet Max in key markets:
In Stockholm, listings using Hemnet Max received 75% more visits, 40% higher bid premiums, and 80% more saved listings compared to those using Hemnet Premium. Similar or better results were seen in Gothenburg, with 93% more listing visits, 32% higher bid premiums, and 150% more saved listings.
Hemnet’s strategic focus on premium services aligns with its market positioning, as consumer research confirms its dominant status among Swedish property buyers and sellers:
Detailed Financial Analysis
Breaking down the revenue by customer segment reveals that property sellers remain the primary growth driver, with a 22% increase to SEK 427.4 million. Real estate agents and property developers also showed positive growth at 4% and 7% respectively, while the advertisers segment declined by 10%.
The company’s EBITDA bridge illustrates the key factors contributing to the 20.7% year-over-year growth:
Hemnet continues to generate strong cash flow, with free cash flow for the last twelve months increasing by 34% to SEK 775.1 million. The company maintains a healthy cash conversion rate of 96.6% and a conservative leverage ratio of 0.6x.
The following chart shows the consistent improvement in cash flow and the company’s share buyback activity:
Forward-Looking Statements
CEO Jonas Gustafsson expressed confidence in the company’s strategy, stating: "We delivered a strong and solid performance in the second quarter with continued growth despite the softer underlying property market."
Looking ahead, Hemnet plans to continue investing in product development to enhance user experience and drive further monetization. The company remains focused on delivering value to agents, buyers, and sellers, while maintaining its dominant market position.
While the Swedish property market faces challenges with record-long listing times and high supply levels, Hemnet’s strong brand position and innovative product offerings position it well to navigate these headwinds. The company’s ability to grow revenue significantly despite declining listing volumes demonstrates the effectiveness of its value-added services strategy.
Investors should monitor macroeconomic conditions in Sweden, as continued uncertainty could impact transaction volumes. However, Hemnet’s 89% market share provides a strong foundation for ongoing growth as it continues to expand its premium service offerings.
Full presentation:
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