Street Calls of the Week
Acconeer AB, a SEK 46.47 million market cap company, reported a record revenue of SEK 16.5 million in Q3 2025, marking a 30% year-over-year increase. The company achieved its first positive EBIT quarter, with a SEK 220,000 profit. Following the earnings announcement, Acconeer’s stock price surged by 20.36%, reflecting investor optimism about the company’s financial performance and future prospects. According to InvestingPro, the company maintains a "Fair" overall financial health score of 2.12 out of 5, with particularly strong metrics in growth potential.
Key Takeaways
- Acconeer achieved record revenue and its first positive EBIT in Q3 2025.
- The company’s stock price increased by 20.36% post-earnings announcement.
- Acconeer launched 13 new products and shipped 285,000 sensors during the quarter.
- The A212 multi-channel radar sensor is in its final development phase.
- The company aims for a revenue target of SEK 300 million by 2027.
Company Performance
Acconeer’s performance in Q3 2025 was strong, with a significant increase in revenue and profitability. InvestingPro data reveals the company holds more cash than debt on its balance sheet, though it’s currently burning through cash rapidly. The company’s focus on innovation and product development has paid off, as evidenced by the launch of 13 new products and the shipment of 285,000 sensors. The development of the A212 multi-channel radar sensor, which is in its final stages, positions Acconeer well in the competitive radar technology market. Discover 6 more exclusive InvestingPro Tips and comprehensive financial analysis in our Pro Research Report.
Financial Highlights
- Revenue: SEK 16.5 million, up 30% year-over-year
- EBIT: SEK 220,000, marking the first positive quarter
- Gross margin for product sales: 57%
- Operating expenses reduced by SEK 3.3 million
- Positive cash flow from operations: SEK 1 million
Market Reaction
Following the earnings report, Acconeer’s stock surged by 20.36%, reaching a price change of SEK 1.03. This increase reflects investor confidence in the company’s strategic direction and financial health. The stock’s performance is notable within its 52-week range, with the last close value at SEK 5.06 and a 52-week high of SEK 7.05. Based on InvestingPro’s Fair Value analysis, the stock appears to be fairly valued, with analysts setting a unified price target suggesting 28% potential upside. The company’s revenue has shown impressive growth with a 5-year CAGR of 56%.
Outlook & Guidance
Acconeer has set ambitious financial objectives, including becoming cash flow positive in 2026 and achieving a revenue target of SEK 300 million by 2027. The company expects automotive, level sensing, and presence detection to be its top product areas in the coming years. The A212 radar sensor is anticipated to secure design wins across multiple segments, further strengthening Acconeer’s market position.
Executive Commentary
CEO Ted Hansson highlighted the company’s achievements, stating, "We managed to reach the first of our communicated financial objectives, the EBIT objective." He also emphasized the competitive advantages of the A212 sensor, noting, "A212 offers a very competitive range, very competitive accuracy."
Risks and Challenges
- Supply chain disruptions could impact production and delivery schedules.
- Market competition in radar technology remains intense.
- Economic fluctuations may affect customer spending and project timelines.
- Regulatory approvals for new products could face delays.
- Currency exchange rates might impact financial results.
Q&A
During the earnings call, analysts inquired about the A212 sensor’s potential applications and market reach. CEO Ted Hansson responded that the sensor is being evaluated by at least 10 customers and highlighted its potential in consumer electronics and automotive industries. Additionally, the exclusive partnership with Alps Alpine for automotive applications was discussed, emphasizing the strategic importance of such collaborations for Acconeer’s growth.
Full transcript - Acconeer AB (ACCON) Q3 2025:
Conference Operator: Welcome to the conference call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing 5 on their telephone keypad. Now, I will hand the conference over to the speakers. Please go ahead.
Ted Hansson, CEO, Acconeer: Good morning, everyone, and welcome to the Acconeer 2025 Q3 earnings call. I’m Ted Hansson, CEO of Acconeer. We are using a new distribution solution for our earnings call today. I hope everyone has managed to connect and that you can hear me clearly. The agenda for today is a business update, followed by a Q3 earnings walkthrough, and we will finish off with a Q&A session. There is a possibility to raise your questions using the telephone system, as well as using text. Let me first start with a brief summary of the third quarter. We saw a revenue of SEK 16.5 million, which is an all-time high, and a 30% year-over-year growth. As you know, the U.S. dollar has been trending down to the Swedish crown, and we are trading in the U.S. dollar. With constant currency, we saw a 24% revenue increase year over year.
I’m very happy to report Acconeer’s first positive EBIT quarter of SEK 220,000 and a gross margin for product sales of 57%. We noted 13 product launches and shipped 285,000 sensors during the quarter. Sales within level sensing and cargo tracking grew significantly in the quarter. We announced new design wins in automotive, including the first interior detection with A121 sensor. Our new radar sensor, the A212, entered the final phase of development, and the launch customer has now started regulatory certification. I will now go to the operational update, and first, I will give a brief introduction to Acconeer for any new listener. Acconeer is a Swedish semiconductor company. We are fabless. We develop and sell advanced, low-power, and cost-effective millimeter wave radar solutions. We have headquarters in Malmö. We are around 50 people in the company. We have been listed on Nasdaq First North since 2017.
Our products are built on a unique technology that is based on an innovation from Lund University, which offers a unique combination of accuracy and power efficiency. We have more than 200 end products in the market and have sold more than 3.5 million sensors. Radar sensors are used in lots of different applications. As part of the focus strategy that was implemented last year, we now focus our development and sales efforts on four product areas where we see high market potential and strong match with our technology. These product areas are cargo tracking, as you can see on the top left part, where our sensor is used to monitor fill level in containers and trucks. The sensor can also be used to monitor door opening, detect human presence to combat human trafficking, and measure goods that move around or vibrate during transport.
In presence, we target advanced applications requiring detection of micro-movements or direction or distance. Our new multi-channel radar product, A212, will expand the addressable market within presence significantly. We are adding capabilities such as tracking, counting, and classifying objects. Level sensing is the largest segment for us in 2025. We have a very strong correlation between the core advantages of our technology and the requirements in level sensing. We have automotive, where we have a close collaboration with our partner Alps Alpine, who is a leading Japanese Tier 1 company. Finally, we have the industry and automation product area. This is a massive potential business for us. Within this, we have proximity sensors, vibration, and distance measurement. At the same time, the development and product cycles are very long in the industrial and automation segment. We’re still waiting for the big commercial breakthrough there.
As I said, there is a lot of potential in this market. We are finalizing the development of A212, our new advanced multi-channel radar, which will enable new high-value applications in automotive and presence. We also see great opportunities in vital sign monitoring, elderly care monitoring, and robotics. I will now go through some of the development in our product areas. First, we look at the automotive area. During the quarter, we announced two new design wins, and both these design wins are with two different new and different Japanese premium car manufacturers, including the first A121 interior detection design win. This is a big and significant milestone to Acconeer. We have stated for some time that we believe that child presence is going to be a basic feature in most cars going forward.
Now we have design wins using A111, A121, and A212, all three sensor generations within interior detection. OEMs have different requirements when it comes to placement, when it comes to functions, features, and cost structure. In order to be a significant supplier to this business, it is important to have a broad and competitive offering. Us winning new customers at this point in time, when there are multiple competitors also promoting millimeter wave radar sensors for interior detection, I think is a strong testimony, strong evidence that we have a very strong and competitive offering for interior detection. Our launching customer of A212 has started the regulatory certification, and we are now in the final stage of the development. The business bounced back, recovered a bit during the third quarter.
I want to stress that the growth is mainly coming from non-automotive in the third quarter, but there was a recovery in the business, in the automotive business. This was triggered by an order from a new end customer, and we have a very positive outlook on the revenue and business going forward within automotive. In level sensing, we also saw progress. We had four new product launches. We are now very quickly approaching 100 end products in the market within level sensing. We have spent effort, continuous effort to improve our offering. We have been working on addressing larger tanks, different materials, improving accuracy, improving power consumption, working closer with customers, and so on. We now see clear evidence, results of this effort. During the quarter, we started new projects that are targeting slightly different applications within level sensing with both new and existing customers.
This is very exciting for us. It’s a great way to scale the business within level sensing. We also saw a record module sales within the quarter. In the third quarter of this year, we not only had a record revenue, we also saw a record module sales within the quarter. In cargo tracking, there is also continued progress. We received a volume order from a new customer who is a very high potential and well-known player in the cargo segment. Also here, we’ve been working to improve our offering. We have added a new monitoring requirement, which is now received by our customers, and they are using it and integrate it into their products. We have also improved our reference application and tested it on real containers to enable faster integration and go-to-market for our customers.
Looking at A2, the A2 project is still the main activity within the development part of Acconeer. The first product that will come out of the A2 project is called A212. A212 is the seller name of the product that is coming out. It’s an advanced multi-channel radar, and as I said, we are now in the final stage of development where regulatory certification has been started by the launch customers. During the quarter, we also engaged with several new customers that are evaluating A212 for different presence applications. Here we are talking about tracking, about classification, as well as vital sign and fall detection applications. As I’ve said before, we target to announce the first design win for A212 outside automotive during 2025. We are now in deep discussions with many companies that are evaluating our technology.
When we talk to these customers, in general, we get very positive feedback. A212 offers a very competitive range, very competitive accuracy. It also has a very high integration level with an MCU included where you can run the application for the radar sensor, as well as a very competitive cost structure. The market that we are approaching, we are going after larger customers, as I’ve said many times. These customers typically already have multi-channel radar in their product portfolio. They already have products out in the market. We come in as a new player in the multi-channel segment. For me, this is a perfect time to enter. We are coming to a market that has started, that has already been created, that is about to boom. We come with a very competitive solution. At the same time, our customers are not fully satisfied with their current suppliers.
There are complaints about performance, complaints about support, complaints about price. Entering now is a very good time to come and grab this market. That is something that we are putting a lot of effort now to convert these evaluations into design wins. I will move on now and talk a bit about the Q3 earnings. First, we look at the profit and loss. As I mentioned initially, we had a record revenue in the quarter. As you know, the U.S. dollar, which we trade in, has weakened significantly. Year over year, we had 13% growth or 24% with constant currency. Quarter over quarter, the growth was 57% or 59% with constant currency. We deliver on the first of our communicated financial objectives, an EBIT positive quarter.
As you can see in the graph on the right side, we had significant improvement of EBIT as a result of increased top line and decreased cost. Now, let’s look at some of the key metrics and highlights. First, I would like to look at the OPEX, the operating expenses. As you can see in the graph down left, we managed to take out SEK 3.3 million OpEx compared to the same period last year. This is a result of the tough decisions that we have implemented in the cost reduction program. It’s really happy to see that it’s now paying off and that we managed to reach a positive EBIT. On the right-hand side, you see the CapEx. CapEx, there are two parts, the intangible and tangible assets. For the intangible, it is mainly the A2 development that you can see there.
There is a small portion of it that relates to patents as well. As you can see, the A2 investments in the second quarter continued with some SEK 8 million. There is a trend that is going to go down. Of course, as A2 is going to the market and we enter the maintenance phase, this amount will trend down further. Looking at the top right, you see the inventory. I have said now, this is the fifth quarter I’m reporting for Acconeer. I’ve said that we have a too high inventory value. That is still true, but it is going down significantly. We have taken out SEK 10 million in the last four quarters, more than SEK 3 million in the last quarter. There is a positive development of the inventory situation.
Looking at the cash and the cash position, we also report for the first time in the company history, a positive cash flow from operating activities of SEK 1 million. As you can see in the bottom left graph, this is a significant improvement compared to previous quarter and also compared to year over year. The cash flow for the period was minus SEK 14.1 million, a significant improvement to the minus SEK 35.7 million the same period last year. Out of this SEK 14.1 million negative cash flow, I showed you around SEK 10 million on the previous page is related to investments in A2 and production tools and production equipment. A large part of the remaining delta is related to accounts receivable. As the business grows, it is natural that we will invoice more. We typically invoice with a 30-day payment term.
By the end of the third quarter, the accounts receivable was at SEK 9.7 million, which is SEK 4.4 million above the average we have seen in the last four quarters. I want to stress that this is not due to having problems getting paid. We don’t have any customer payment outstanding. It is simply because the business is scaling up. The cash position at the end of the quarter was SEK 55.5 million. With that, I would like to finish with a brief summary and the financial objectives. For the third quarter, we saw strong revenue growth. The costs are trending down. We reported new design wins and a recovery in the automotive industry. We see progress in all our product areas. We have now managed to reach the final development phase of A212, where the first customer is now doing the regulatory certification.
We managed to reach the first of our communicated financial objectives, the EBIT objective. We reiterate our financial objectives. The next one is a cash flow positive quarter in 2026, followed by a revenue of SEK 300 million in 2027, and a long-term EBIT margin of at least 25%. With that, I would like to close the presentation part and move to the Q&A session.
Conference Operator: If you wish to ask a question, please dial 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial 5 again on your telephone keypad.
Ted Hansson, CEO, Acconeer: Okay, now we are in the Q&A session. I will try to go through a few of the questions that we have received. I’m very happy to see there is a lot of interest and there is a huge amount of questions here. I do apologize if we cannot cover all of the questions. The first question is, A212 went out to about 10 customers. How many could still be converted to design win? A212 is now being actively evaluated with at least 10 customers, probably a few more. For me, it’s not really about the quantity to convert to design win. We are looking for quality here. We are looking for larger customers that could have a significant impact on our revenue and on our business going forward. These types of customers are typically larger companies. They already have products in the market with multi-channel radars.
In order to reach the design win, you need to reach a relatively high maturity level. It takes some time to convert from evaluation to a design win. As I said initially, the feedback we are getting is, in general, very positive. We have strong confidence to convert, start to convert design evaluations into projects during the fourth quarter. Let’s see how many of them that will be converted. For me, as I said, it’s not about the number. We want to convert a few. We want to convert a few that have a potential to have a real impact on our business going forward. The next question. It has been communicated that Alps Alpine holds exclusivity within automotive. How do they receive royalties or any other form of compensation when supporting businesses outside the automotive segment?
This has actually been communicated in a press release when the A2 development project was started. It’s true, there is an exclusivity within automotive for Alps Alpine and A212. It’s an A2 exclusivity. They are buying the sensors from Acconeer at the market price. We are getting paid and we will make a profit on the units that we sell to Alps Alpine. They do not receive any form of compensation for other segments outside automotive. The next question. At the Redeye event, you mentioned a sensor for sliding doors in cars. Can we expect a design win on this in the near future? I expect we will see design wins both for fronts and sliding doors with the A121 in the future. That’s basically what I can comment on this one. I think that we have a great product. It is very mature.
It is used by many customers now. I expect it will be used both for fronts and sliding doors, yes. Next one. Can you elaborate on why Acconeer only provides kick sensors to three of the five largest car manufacturers? Why not any interior sensing for those yet? In the quarter, we did announce a new design win for interior detection with a new customer. We are expanding, or Alps Alpine are expanding their interior detection business now. We managed to win a new car OEM during the quarter. From my perspective, of course, this question maybe should be raised to Alps Alpine, but the kick sensor was the first product that was developed. It’s now quite mature. It’s a standard product in their offering. It’s offered to basically all customers. Interior detection is not on the same maturity level.
It’s natural for me that it takes some time before it’s widely promoted and widely adopted by many customers. We are looking positively on the future, and we expect Alps Alpine will continue to win more interior detection customers going forward. Now there is a question in Swedish, so I read it in Swedish. Det är sagt att Alps Alpine har exklusivitet på A2 inom automotive. Hur ser du på möjligheten att jobba tillsammans med dem för att vinna affärer utanför automotive? Har ni några diskussioner om det? Vilka områden skulle då kunna vara aktuellt? All right, I will try to translate to English. The question is basically, do you see any opportunity to work with Alps Alpine outside automotive? The answer to that is, we are doing that. They are doing logistics tracking product with our sensor.
They have announced in their public presentation that they see millimeter wave as a strategic product within Alps Alpine, and that they see that there are many applications for millimeter wave radar sensors besides the automotive. Definitely, that is an area where we have already launched product, and we expect there will be continued work on that and that we will address more segments together. The next question is, let’s see, the very similar question here. Maybe we should take a question that is slightly different. When the A2 is finalized, will Acconeer receive any milestone payment for Alps Alpine in connection with that event? When the A2 project was started, there was a press release made that explained their exclusivity for Alps Alpine. It also explained the NRE that Alps Alpine is paying Acconeer to co-develop this product.
There are still milestones that are not paid that will be paid when we are finished with the project. The answer to that one is yes, there will be more payments. Next question. Based on your current outlook, which do you expect to be your three largest product areas in 2026 and 2027, respectively? I think this is a very interesting question. In 2026, the three largest product areas, in my view, will be automotive, level sensing, and presence. I think it will be the same in 2027. That is partly because presence has such a potential to grow when we get the A2 product out and we can start shipping it in volume. There is a lot of high-value applications to go after. There is a lot of customer demand for A212 within presence applications. Next question.
In cases where we already have an existing customer relationship for the kick sensor, in your view or Alps Alpine, does that increase the likelihood of selling their child presence detection into future car models with the same manufacturer? Of course, when we deliver a product with great performance and great quality, you get an advantage. One of those advantages is, of course, that you will have an opportunity to sell more. As long as we are delivering a very good kick sensor experience to the customer, I’m, of course, confident that that will help us to also win the child presence detection of the same manufacturer. Let’s see, do we have more questions here? You have more than 229 customer product releases now. How many of them are driving the majority of the revenue?
Most companies have a few large customers, and of course, Acconeer is in the same position. I do believe we have a relatively good spread when it comes to product segments, also when it comes to the product that they use, meaning the sensor they use, but also the geographic spread. That is a strength for us because cycles in the economy hit different sectors at different times. We have different trade barriers and so on. That gives us a solid base to have that. I guess we have more than, I don’t want to, it’s more than 10 customers that make up the top, I don’t know, 60% of our revenue and probably many more to get to a higher number. It’s not reliant on only a few customers. There are so many questions here. Let’s see if we can move to another person, maybe. Okay. Let’s see.
How many A2 will there be in a car for child presence detection? This is up to the car manufacturer. It depends on what they want to measure. We will see cars where there is one, basically for each seat that you want to monitor. We will see cars where there is one per row. It depends on how much supplementary information in terms of posture, size that you would like to get. I expect we will see between two and four, basically, in different models in general for A2. We saw a significant increase in modules during the quarter. Can you tell us more about which segments they went to and was it a specific customer? I think I did mention that in the presentation. I said when it came to level sensing, we saw a record in module sales. We are selling a few different modules.
Actually, all those modules, the sales went up in the third quarter. It is more than one customer and it’s more than one module. There is a general increase in the demand from level sensing, including the module business. Okay, let’s see if we can wrap up here with the last couple of questions here. It says, how do you plan to finance the A2 inventory that is needed for the ramp-up? That is a good question. I guess we are not planning on building any A2 inventory. I want to stress that. Of course, we need to invest in ramping up the production of A2. We have, of course, already wafers running in the foundry to support the launch during 2026. We are not going to, we are trying to minimize the amount of capital that we lock up in A2, the working capital. We’re trying to minimize that.
We’re doing that by collaborating with the foundry when it comes to payment terms and when we pay. We are working on ordering the right quantity, meaning we are demanding binding forecast, binding orders from customers at an early stage to make sure that we build the right quantity. Those are the main strategies we are applying now to keep the working capital down. Okay, let’s maybe do the last question here. Do you see any potential in consumer electronics going forward when releasing A2? Yes, definitely. I have mentioned that before. A2 will be a very competitive product in many areas. We see interest for different presence applications. Here we are talking about air conditioners, TVs, speakers, smart displays, different kinds of control panels, and so on. We also see a lot of interest when it comes to monitoring babies and elderly people.
They want to do the fall detection. They want to measure vital signs such as breathing and heart rate. We also see there is a general increase in or general demand for improved tracking capabilities of presence applications to understand how many people are in a room or in a space, and how are they moving and classify, is it people, is it pets, are they children, are they adults. Many of those things will go into different kinds of consumer electronics. That is also, of course, where there is a lot of the volume, right, in consumer electronics. That is a prioritized area for us. All right, with that, I think we are going to close the Q&A session. I do apologize if we could not answer all the questions. Once again, thanks for all the questions and all the interests.
Conference Operator: There are no more questions at this time. I hand the conference back to the speakers for any closing comments.
Ted Hansson, CEO, Acconeer: Okay, so before closing, I just would like to repeat that we are very happy with the third quarter, with decreasing cost. We have increased revenue, and we are making good progress in automotive and all the other product areas. We enter the fourth quarter feeling very optimistic and look forward to continue to create shareholder and customer value. Thank you for your interest in Acconeer, and thank you for joining our earnings call today.
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