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Introduction & Market Context
SaveLend Group AB (YIELD) released its Q1 2025 trading update on April 30, 2025, highlighting improved profitability metrics despite a year-over-year revenue decline. The fintech company, which operates savings platforms and invoice services, saw its stock trading at 1.74 SEK on May 2, down 7.49% following the presentation, and currently sits near the lower end of its 52-week range of 1.25-3.77 SEK.
The company has transitioned from quarterly reports to semi-annual reporting with trading updates for Q1 and Q3, marking this as the first such trading update under the new reporting structure.
Quarterly Performance Highlights
SaveLend Group reported net sales of 25.3 million SEK for Q1 2025, down from 29.2 million SEK in the same period last year. Despite the revenue decline, the company significantly improved its profitability metrics, with EBITDA improving to -0.8 million SEK from -2.9 million SEK in Q1 2024.
As shown in the following quarterly summary slide, the company maintained strong retention metrics with Net Capital Retention at 117% and Net Revenue Retention at 120%, while managing 1.84 billion SEK on its savings platform:
CEO Peter Balod emphasized the company’s progress in his statement, noting that EBITDAC (EBITDA adjusted for activations) reached -1.73 million SEK, a substantial 63% improvement from -4.68 million SEK in the comparable period:
The company’s consolidated profit and loss statement reveals a notable turnaround in bottom-line performance, with profit after financial items reaching 4.4 million SEK compared to a loss of 6.3 million SEK in Q1 2024. This translated to earnings per share of 0.05 SEK, up from -0.11 SEK in the prior-year period:
Strategic Initiatives
SaveLend Group’s strategic shift toward corporate loans and real estate projects appears to be gaining traction. The total facilitated volume for the quarter reached 245 million SEK, up from 197 million SEK in the previous quarter, driven primarily by the business segment.
The company mediated over 130 million SEK in corporate loans, factoring credits, and real estate projects during Q1, representing a 156% increase compared to the first quarter of 2024. This shift reflects the company’s strategic adjustments in credit offerings to enhance profitability for both savers and the company itself.
The appointment of Karl Tigerhielm as responsible for Real Estate projects and the first anniversary of SaveLend Fast further underscore the company’s strategic focus on diversifying its credit offerings.
Financial Analysis
SaveLend Group’s improved profitability comes despite lower revenue, largely due to significant cost-cutting measures. As illustrated in the financial development slide, other external costs decreased to 5.4 million SEK from 8.1 million SEK in the prior year, while personnel costs fell to 12.9 million SEK from 14.0 million SEK:
The company’s provision costs also decreased to 6.8 million SEK from 9.1 million SEK, resulting in a gross profit of 18.8 million SEK compared to 20.3 million SEK in Q1 2024. While this represents a slight decline, the reduced operating expenses more than compensated, leading to the improved EBITDA performance.
Forward-Looking Statements
SaveLend Group highlighted several key events during and after the quarter that signal its future direction:
Most notably, the company completed a transaction equivalent to 22% of the shares in Billecta AB, representing a strategic divestment of a minority stake in its invoice services subsidiary. This move aligns with the company’s stated plan to be approved as a credit institution following the separation of Billecta.
The partnership between Billecta and Lime, along with NordIX AG’s commitment to increase its investment in SaveLend by at least 115 million SEK in 2025, provides additional growth avenues and capital resources for the company’s strategic initiatives.
The nomination of Håkan Nyberg as the new Chairman, pending approval at the Annual General Meeting, suggests potential leadership changes that could further influence the company’s strategic direction as it pursues credit institution status and continues its corporate restructuring efforts.
While SaveLend Group faces challenges in revenue growth, its improved profitability metrics and strategic repositioning indicate a company in transition, focusing on higher-margin business segments and operational efficiency to drive long-term value creation.
Full presentation:
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