How are energy investors positioned?
Introduction & Market Context
Huddlestock Fintech AS (OSL:HUDL) presented its first quarter 2025 results on May 28, 2025, highlighting a strategic transformation following the Done.ai transaction and an intensified focus on the European Investment-as-a-Service (IaaS) market. The company, which currently has a market capitalization of NOK 223 million, is positioning itself to capitalize on what it describes as a substantial growth opportunity in continental Europe’s financial services sector.
According to the presentation, Huddlestock is targeting an underserved market, claiming that half of Europe’s population remains underbanked while fintech revenues are expected to grow exponentially towards 2030. The company also noted that the number of retail trading platforms is projected to increase from approximately 190 in 2020 to around 250 by 2025.
As shown in the following overview of Huddlestock’s current position:
Strategic Initiatives
The centerpiece of Huddlestock’s strategic transformation is the Done.ai transaction, which the company describes as "transformative" and based on "strong financial and operational motives." The deal restructures Huddlestock to maintain full ownership of Huddlestock GmbH and Visigon while holding a minority stake in Done.ai.
The transaction’s rationale is illustrated in this strategic overview:
Key operational benefits highlighted include enhanced organizational agility, optimized resource allocation, and reduced complexity. From a financial perspective, Huddlestock emphasized substantial cost savings, reduced cash burn, and increased financial flexibility.
The settlement process involves multiple stages: a completed cash payment to Huddlestock of NOK 10 million, a first Done.ai share issue of NOK 56 million by conversion of a Vendor Note, and a pending second share issue of NOK 15 million. Notably, 20% of the issued Done.ai shares will be distributed to Huddlestock shareholders, with approval from Norwegian Financial Authorities expected in Q3 2025.
European IaaS Platform Development
Huddlestock’s strategic focus centers on applying its "Nordic mindset to a larger European market" through its Investment-as-a-Service platform. The company has signed its first European IaaS platform contract with GIGA Broker, with the platform launch expected in the second half of 2025.
The following slide illustrates Huddlestock’s European IaaS platform strategy and partner model:
The company’s approach leverages a securities license that supports offerings in any European Economic Area member state, enabling access to a wider range of clients across Europe with "significantly higher volumes than in the Nordics." Huddlestock emphasized that its partner model reduces time to market while limiting development expenses and legacy system issues.
Quarterly Performance Highlights
Huddlestock reported a net loss of NOK 18.3 million for Q1 2025, a significant improvement from the NOK 42.7 million loss in Q4 2024. Total (EPA:TTEF) operating income was NOK 17.4 million, down from NOK 19.6 million in the previous quarter.
The company’s financial performance is detailed in the following profit and loss statement:
EBITDA improved to negative NOK 6.1 million from negative NOK 8.5 million in Q4 2024. The company attributed the improved results to strategic measures taken in 2024 and 2025, including a sharpened focus on accelerating market expansion in Germany and continental Europe.
The cash position as of March 31, 2025, stood at NOK 11.8 million, up from NOK 10.9 million at the end of December 2024. The cash flow breakdown is illustrated here:
Notably, Huddlestock received an additional NOK 10 million in cash from the first finalization of the Done.ai deal after the reporting period, further strengthening its cash position to a pro-forma level of NOK 13.5 million.
Consulting Business Performance
Huddlestock’s wholly-owned consulting business, Visigon, showed resilience despite challenging industry conditions. The company reported that Visigon exceeded the market average with a 2024 margin of 9.4% following strategic sales initiatives and cost-cutting measures.
The following chart illustrates Visigon’s revenue and FTE development:
Visigon is implementing a new integrated and diversified business model, transforming from a niche consultancy business in the Nordics to a full-service provider managing trading, risk management, and post-trade operations for banks and other financial institutions.
Forward-Looking Statements
Looking ahead, Huddlestock expects the final closing of the Done.ai transaction in Q3 2025, pending approval from the Financial Supervisory Authority. The company anticipates reduced costs and cash burn following the transaction.
For its European expansion, Huddlestock expects GIGA Broker end-customers to be onboarded in the second half of 2025 and aims to sign a letter of intent with a second customer before year-end. For Visigon, 2025 revenue is expected to be in line with 2024, with the majority to be recognized in the second half of the year, and a focus on margin expansion and profitability.
Huddlestock’s stock last closed at NOK 0.89, within a 52-week range of NOK 0.42 to NOK 1.58, as the market evaluates the company’s strategic transformation and growth potential in the European financial services market.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.