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Introduction & Market Context
Oneflow AB (STO:ONEF) presented its Q2 2025 financial results on August 15, 2025, revealing a company navigating challenging market conditions while maintaining solid revenue growth. The company’s stock price has been under pressure, trading at 25.9 SEK, down 0.39% on the day of the presentation and significantly below its 52-week high of 43.9 SEK.
The contract management software provider continues to expand its customer base and international presence while shifting focus toward profitability over aggressive growth in the near term. This strategic pivot comes as the company faces headwinds including currency fluctuations and pressure on customer retention rates.
Quarterly Performance Highlights
Oneflow reported net sales of MSEK 41.5 for Q2 2025, representing a 28% year-over-year increase. The company’s Annual Recurring Revenue (ARR) reached MSEK 171.2, growing 19% compared to the same period last year, with a further increase to MSEK 173.2 in July 2025.
As shown in the following performance summary:
The company’s paying customer base expanded to 4,400, a 15% year-over-year increase. However, retention metrics showed some weakness, with Net Retention Rate falling to 97% and Gross Retention Rate at 87% in Q2 2025.
The following chart illustrates the pressure on retention rates:
Detailed Financial Analysis
Despite slowing ARR growth, Oneflow maintained a strong gross margin of 93%, providing a solid foundation for future profitability. The company’s operational efficiency improved significantly, with ARR per full-time employee (ARR/FTE) increasing 22% year-over-year to TSEK 936.
The company’s net sales performance shows consistent growth and increasing international diversification:
Oneflow is making progress toward profitability, with EBITDA improving to MSEK -8.4 in Q2 2025, a 40% improvement from MSEK -28.7 in the same period last year. EBIT stood at MSEK -20.7, a 13% improvement year-over-year. However, these figures were impacted by a one-off restructuring cost of MSEK 3.6 related to organizational changes and workforce reductions.
The following chart demonstrates the company’s progress toward profitability:
Net New ARR was MSEK 6.6 in Q2 2025, down 33% year-over-year, with management noting a significant currency headwind of MSEK 2.6 year-to-date:
Strategic Initiatives
Oneflow is expanding its global footprint with a new office in North America. The Chicago-based operation will initially have one employee, with plans to grow the team. The country manager brings valuable experience from building Pagero’s North American operations.
The company continues to enhance its end-to-end contract management solution, which spans pre-signing, signing, and post-signing phases. This comprehensive approach differentiates Oneflow from competitors that focus primarily on e-signatures.
Product development plans for Q2 and Q3 2025 include several enhancements to the platform’s intelligence capabilities, new integrations with HR and CRM systems, and improvements to the Oneflow Marketplace.
Forward-Looking Statements
Oneflow has adjusted its near-term expectations while maintaining ambitious long-term goals. While the company’s financial target remains an ARR growth rate above 30%, management acknowledged this won’t be achieved in the current market environment.
The immediate priority is reaching profitability with current funding before refocusing on accelerating growth. CEO Anders Hamnes emphasized this shift during the earnings call, stating, "We focus on becoming profitable. And after that, we will work on getting the growth up again at 30% plus."
The company’s strategy reflects a pragmatic approach to the current market challenges while positioning Oneflow for sustainable long-term growth. Investors will be watching closely to see if the company can successfully execute this balancing act between improving profitability and maintaining sufficient growth momentum.
Full presentation:
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