Tobii Q2 2025 presentation slides: 41% sales growth, but shares tumble 21%

Introduction & Market Context

Tobii AB reported strong financial results for the second quarter of 2025 during its earnings presentation on July 29, 2025. Despite posting 41% year-over-year sales growth and achieving positive EBIT, Tobii’s stock fell sharply by 21.47% following the announcement, closing at 4.70 SEK after a previous close of 5.985 SEK.

The eye-tracking technology company highlighted significant improvements in profitability and cash flow, driven by successful cost reduction initiatives. However, investors appeared concerned about certain aspects of the report, including segment performance variability and increased net debt.

Quarterly Performance Highlights

Tobii’s Q2 2025 presentation emphasized three key financial metrics: 41% group net sales growth, 9% EBIT margin, and 24 MSEK in EBIT. The company also reported a substantial 192 MSEK improvement in free cash flow compared to Q2 2024.

As shown in the following chart of quarterly financial development:

The company’s gross margin strengthened to 83% in Q2 2025, up from 79% in the same period last year. This performance marks a significant turnaround for Tobii, which has now achieved positive EBIT on a rolling 12-month basis.

Other notable achievements included:

• A new sales contract with Dynavox Group extending to 2029, including a 100 MSEK pre-purchase of components
• 263 MSEK in cash-related operational savings to date, exceeding the 200 MSEK target
• Launch of Glasses X, a cloud-native wearable eye tracker
• Secured homologation for Tobii’s single-camera interior sensing platform with a premium European OEM

Detailed Financial Analysis

Tobii’s business is divided into three segments, with varying performance across each:

The Integrations segment was the standout performer, representing 63% of net sales with 190% organic growth and 112 MSEK in EBIT. This segment benefited from a one-time 70 MSEK volume order and 45 MSEK in royalty revenue.

As illustrated in the Integrations segment performance chart:

In contrast, the Products & Solutions segment (33% of net sales) faced challenges with a 13% decline in organic growth and -59 MSEK EBIT. The company noted that this segment’s results were impacted by -33 MSEK in one-time write-offs.

The Autosense segment, while still small at 5% of net sales, showed promising growth of 44% organically. However, it continues to operate at a loss with -28 MSEK EBIT.

Tobii’s balance sheet and cash flow showed mixed results:

While free cash flow improved dramatically to 71 MSEK (compared to -121 MSEK in Q2 2024), cash and cash equivalents decreased to 150 MSEK from 244 MSEK a year earlier. Net debt increased to 242 MSEK from 165 MSEK in Q2 2024.

Strategic Initiatives

A central focus of Tobii’s presentation was its cost reduction program, which has exceeded targets:

The company has achieved 263 MSEK in cash-related operational savings through portfolio optimization, increased efficiency, and synergies from acquisitions.

In the automotive sector, Tobii highlighted significant progress with its interior sensing technology:

The homologation of Tobii’s single-camera interior sensing platform with a premium European OEM represents a major milestone. The company described this as "a disruptive leap in efficiency and scalability" for the in-cabin sensing industry, with production set to begin in H2 2025.

Tobii also emphasized its growing presence in vehicle deployments:

The company has now deployed its interior sensing solutions in over 775,000 vehicles since 2019, across more than 150 models and 12 OEM customers.

In the wearable technology space, Tobii introduced its new Glasses X product:

The company noted that wearable eye trackers remain its most significant revenue contributor, with the new cloud-native design aimed at accelerating workflows for market research and training applications.

Forward-Looking Statements

Looking ahead, Tobii expressed confidence in its trajectory while acknowledging potential volatility:

"We expect variation in the results of individual quarters," the company stated, while remaining "determined to continue efforts to stay on a path of sustained improvement."

The presentation highlighted Tobii’s progress toward profitability and financial strength, with an improved cash position exiting Q2 2025 and a stronger product offering in both Autosense and Products & Solutions segments.

Despite the positive tone of the presentation, the significant stock price decline suggests investors may have concerns about sustainability of growth, segment performance variability, or broader market conditions. The disconnect between the company’s positive messaging and the market’s negative reaction may warrant closer attention from investors as Tobii continues its transformation journey.

Full presentation:

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