StrongPoint Q2 2025 slides: Revenue jumps 18% amid key customer wins

Introduction & Executive Summary

StrongPoint ASA (OB:STRO) presented its second quarter 2025 financial results on July 11, showing significant revenue growth and strategic customer wins that position the company for continued expansion in the grocery retail technology sector.

The Norway-based retail technology provider reported revenue of 350 million Norwegian kroner (MNOK) for Q2 2025, representing an 18% year-over-year increase. The company also achieved positive EBITDA of 7 MNOK and generated 20 MNOK in operating cash flow during the quarter.

CEO Jacob Tveraabak and CFO Marius Drefvelin highlighted the company's success in securing new contracts with major European retailers, including Carrefour Belgium and COOP Estonia, while continuing to build its recurring revenue streams.

Quarterly Performance Highlights

StrongPoint's Q2 2025 results demonstrated solid financial performance across key metrics. Revenue growth accelerated to 18% year-over-year, reaching 350 MNOK, while recurring revenue grew 16% to 378 MNOK (calculated on a rolling 12-month basis).

As shown in the following quarterly revenue chart, StrongPoint has maintained a generally positive growth trajectory over recent years:

The company's EBITDA for Q2 2025 came in at 7 MNOK, representing a 2.1% margin. This marks a significant improvement of 16 MNOK compared to the same period last year, when adjusted for non-recurring restructuring costs.

The EBITDA chart below illustrates the company's profitability trends over time:

StrongPoint's recurring revenue streams continue to be a key focus area for the company, with notable growth particularly in rentals and service agreements. The recurring revenue breakdown shows:

The company highlighted a 45% increase in license revenue compared to last year, primarily driven by its Order Picking and Self-Checkout solutions.

Customer Wins & Strategic Initiatives

During Q2 2025, StrongPoint secured several significant customer wins that reinforce its position in the European grocery retail technology market:

1. Carrefour Belgium selected StrongPoint's Order Picking solution for scheduled deliveries following a competitive RFP process, with implementation already underway.

2. A Nordic grocery retailer placed a 21 MNOK order for AI-powered weighing scales from StrongPoint partner DIGI. These scales feature instant product recognition technology that reduces errors and improves customer experience.

3. COOP Estonia ordered 130 self-checkouts, continuing a long-standing partnership between the companies.

The company also provided updates on existing projects, noting that UK grocery giant Sainsbury's plans to complete the full rollout of StrongPoint's order picking system by summer 2026, with some additional stores going live before the Christmas period.

Financial Analysis

StrongPoint maintained a stable financial position in Q2 2025, with careful management of cash flow and working capital. The company's cash flow movements for the first half of 2025 show:

The company ended Q2 with 84 MNOK in disposable funds, slightly down from 85 MNOK at the end of Q1 2025. Net interest-bearing debt stood at 74 MNOK, relatively stable compared to recent quarters:

Working capital saw some fluctuation during the first half of 2025, with inventory increases partially offset by changes in accounts payable and other current items:

Company Overview & Market Position

StrongPoint positions itself as a technology provider focused on helping grocery retailers improve efficiency and profitability. The company reported:

With approximately 500 employees across Europe, StrongPoint operates directly in 9 core countries while supporting retailers in 20 additional markets through partner networks. The company's solutions address five key grocery retail challenges:

Outlook & Forward-Looking Statements

Looking ahead, StrongPoint expressed confidence in its long-term growth prospects while acknowledging some short-term challenges. The company expects continued improvement in EBITDA and recurring revenue, though at a slower pace than initially anticipated.

For the longer term, StrongPoint highlighted strengthening core fundamentals, particularly in global SaaS e-commerce opportunities. The company maintains its targets of healthy revenue growth and an EBITDA margin exceeding 10%.

These projections align with the company's subsequent Q3 2025 performance, which showed continued revenue growth of 2% year-over-year to 320 MNOK and improved EBITDA of 14 MNOK. The company's cash position also strengthened significantly in Q3, increasing to 112 MNOK from the 84 MNOK reported at the end of Q2.

StrongPoint shares (OB:STRO) have recently traded at 9.42 NOK, up 1.29% according to the latest market data, with a 52-week range of 8.60 to 12.20 NOK.

Full presentation:

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