ReElement Technologies stock soars after securing $1.4B government deal
Introduction & Market Context
StrongPoint ASA (OB:STRO) presented its third quarter 2025 results on October 23, showcasing mixed financial performance with declining revenue but growing recurring revenue streams. The retail technology provider, which focuses on solutions for grocery retailers across Europe, highlighted strategic customer wins and improved cash position despite facing headwinds in overall revenue growth.
The company’s stock closed at NOK 9.76 on October 22, down 0.81% ahead of the earnings presentation, reflecting cautious investor sentiment. StrongPoint operates in nine core countries across Europe, with particular focus on the Nordics, Baltics, Spain, and UK markets, offering technology solutions that address key challenges in grocery retail operations.
Quarterly Performance Highlights
StrongPoint reported Q3 2025 revenue of NOK 320 million, representing a 2% decrease compared to the same period last year. However, the company’s recurring revenue showed strong growth, reaching NOK 380 million on a rolling 12-month basis, a 12% increase year-over-year. EBITDA for the quarter stood at NOK 14 million, representing a 4.3% margin and a slight improvement from NOK 12 million in Q3 2024.
As shown in the following chart of quarterly revenue performance, StrongPoint has maintained relatively stable revenue over recent quarters:
The company’s recurring revenue streams have shown consistent growth, with license revenue increasing by 27% compared to last year, primarily driven by Order Picking and Self-Checkout solutions. The breakdown of recurring revenue shows a healthy mix of service agreements, licenses, and rentals:
EBITDA performance has remained relatively stable over recent quarters, with Q3 2025 showing a slight improvement over the same period last year:
Strategic Initiatives and Customer Wins
StrongPoint highlighted several significant customer wins during the quarter that position the company for future growth. Portugal’s largest grocery retailer, Sonae MC, selected StrongPoint’s Order Picking solution, with implementation scheduled for the first half of 2026. This represents a major win in the competitive e-commerce fulfillment space.
The company also launched two new Vensafe anti-theft proof-of-concepts with leading UK grocery retailers. These implementations feature updated Vensafe systems with in-aisle product advertising and dispenser screens that generate retail media revenue, creating additional value streams beyond theft prevention.
In another strategic win, a UK-based retailer and distributor of household products selected StrongPoint for their first AutoStore solution, expected to be completed by the end of 2025. This implementation includes warehouse fit-out services, expanding StrongPoint’s footprint in warehouse automation.
Detailed Financial Analysis
StrongPoint’s cash position improved significantly during 2025, with cash balance increasing from NOK 82 million at the end of 2024 to NOK 112 million by September 30, 2025. This improvement was driven by positive EBITDA of NOK 31 million and working capital improvements of NOK 28 million, partially offset by capital expenditures and tax payments.
The following chart illustrates the cash flow movements during 2025:
Working capital improvements were a key contributor to the strengthened cash position, with reductions in accounts receivable and inventory, alongside increases in accounts payable:
The company’s net interest-bearing debt stood at NOK 45 million as of Q3 2025, with disposable funds of NOK 112 million, up from NOK 85 million in the previous quarter:
Forward-Looking Statements
While StrongPoint refrained from providing specific short-term guidance, the company expressed confidence in its long-term outlook. Management highlighted that core fundamentals are strengthening, particularly with global SaaS e-commerce opportunities. The company is targeting healthy revenue growth and an EBITDA margin exceeding 10% in the long term.
The partnership with VusionGroup for Electronic Shelf Labels (ESL), launched in December 2024 and fully effective since July 2025, has resulted in extensive installations in the UK market. However, the company noted that recurring revenue will be impacted as license revenue from the previous ESL provider winds down.
StrongPoint also provided an update on its CashGuard Connect solution, mentioning that an in-store pilot ended on the company’s initiative. Several grocery retailers have inquired about launching in-store pilots, and the solution is being validated to ensure manufacturability and durability.
With a market capitalization of approximately $98.34 million, StrongPoint continues to focus on its core mission of making grocery retailers more efficient and sustainable through technology solutions that address key operational challenges in the retail sector.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.