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Introduction & Market Context
Xplora Technologies AS (OB:XPLRA) presented its Q1 2025 financial results on May 23, 2025, highlighting a transformative quarter marked by the integration of Doro AB following its January 15 acquisition. The company’s stock closed at NOK 37.70 on May 22, near its 52-week high of NOK 38.00, reflecting strong investor confidence ahead of the results announcement.
The quarter represents a significant milestone in Xplora’s evolution from a children’s smartwatch maker into a comprehensive family technology platform spanning three distinct age demographics: children, youth, and seniors. This strategic expansion comes as the company pursues its ambitious goal of reaching one million subscriptions.
Quarterly Performance Highlights
Xplora reported exceptional growth across all key metrics in Q1 2025, largely driven by the Doro acquisition. Group revenues reached NOK 339 million, representing a 188% year-over-year increase, while recurring service revenue grew 27% to NOK 80 million.
As shown in the following summary of key performance indicators, the company demonstrated strong growth across all metrics:
The company’s subscription base expanded to 358,000, a 41% increase from the previous year, with 255,000 in the Kids segment and 103,000 in other categories. Gross profit surged 182% to NOK 191 million, while reported EBITDA reached NOK 18 million. When adjusted for approximately NOK 11 million in one-off expenses related to the Doro acquisition, adjusted EBITDA stood at NOK 29 million.
To provide additional context for these quarterly results, Xplora shared the following longer-term perspective highlighting last twelve months (LTM) revenue of NOK 1.7 billion and annual recurring revenue (ARR) of NOK 318 million:
Detailed Financial Analysis
The Q1 results reflect Xplora’s first consolidated financial reporting including Doro AB, with the company also transitioning from NGAAP to IFRS accounting standards. The quarter included significant one-time expenses related to the acquisition, including approximately NOK 11 million in operational expenses and NOK 32 million in financial expenses.
The following chart illustrates the Group’s revenue composition, gross profit, and EBITDA development:
Breaking down performance by segment, the Kids & Youth division showed modest 1% year-over-year revenue growth to NOK 118 million, while gross profit increased by NOK 9 million to NOK 77 million. Service revenue continued its strong trajectory with ARR reaching NOK 318 million, a NOK 68 million increase from the previous year:
The newly integrated Senior segment, representing the Doro business, contributed significantly to overall results with NOK 229 million in revenue (16% growth year-over-year) and NOK 122 million in gross profit:
Xplora’s service subscription base reached 358,000, representing 41% year-over-year growth. The subscription mix includes 255,000 mobile subscriptions, 77,000 premium activity platform subscriptions, 20,000 B2B subscriptions, and 6,000 service-fee subscriptions for SIM customers:
Strategic Initiatives
During the presentation, Xplora outlined its strategic vision of becoming the leading platform for connected families across all age demographics. The company is executing this strategy through three distinct product lines targeting kids, youth, and seniors.
A key component of this strategy is the launch of Xplora Family IoT App 3.0, which will serve as the central hub connecting all of the company’s devices and services:
For the youth market, Xplora announced the upcoming launch of the HMD Fusion X1 smartphone on June 5, initially through the Xplora web shop and Amazon (NASDAQ:AMZN), with mobile subscriptions to follow in Q2-Q4. The senior market will be addressed through Doro’s new Aurora smartphone line, featuring simplified interfaces and enhanced security features designed specifically for older users.
The following slide illustrates Xplora’s comprehensive approach to serving connected families across all age segments:
Forward-Looking Statements
Xplora reaffirmed its journey toward reaching one million subscriptions across its three target demographics:
The company’s business case for 2025 and beyond builds on its current momentum, with Q1 2025 revenue of NOK 339 million and EBITDA of NOK 18 million providing a foundation for continued growth:
Key priorities for the remainder of 2025 include the successful launch of the youth-focused Fusion X1 product, maintaining annual growth in the kids category, and introducing Doro products with SIM cards in Q2. Management emphasized that service revenue growth and profitability improvement remain central to the company’s strategy.
The refinancing of the Doro acquisition was completed on favorable terms, with a secured long-term loan facility of EUR 82 million featuring a 4-year duration and EURIBOR plus margin interest rate, with up to 75% of the EURIBOR interest fee hedged.
With a strong cash position of NOK 545 million, Xplora appears well-positioned to execute its growth strategy across all three market segments as it progresses toward its one million subscription goal.
Full presentation:
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