Earnings call transcript: Nordic LEVEL Group Q2 2025 misses expectations, stock reacts

Nordic LEVEL Group AB reported its earnings for Q2 2025, revealing a significant miss on both earnings per share (EPS) and revenue forecasts. The company reported an EPS of -0.01 USD, falling short of the projected 0.02 USD. Revenue was 92 million USD, below the anticipated 126 million USD, resulting in a negative surprise of 26.98%. Following the earnings release, the stock initially dropped by 6.4% but later recovered by 4.35% to 0.644 USD. According to InvestingPro analysis, the company’s current Fair Value indicates it may be undervalued despite recent challenges. The company maintains a healthy gross profit margin of 46.34%, though it operates with a significant debt burden.

Key Takeaways

• Nordic LEVEL Group reported a significant earnings miss with a negative EPS surprise of 150%.
• Revenue fell short of forecasts by nearly 27%, indicating operational challenges.
• Stock price initially declined but showed signs of recovery, reflecting mixed investor sentiment.
• Earnings call lacked clear strategic guidance and detailed financial metrics.
• Market conditions remain volatile, impacting the company’s performance.

Company Performance

Nordic LEVEL Group’s performance in Q2 2025 was below expectations, with both EPS and revenue missing forecasts by substantial margins. The company’s inability to meet market expectations suggests underlying operational or market challenges. This performance contrasts with the broader industry trends, where competitors have shown more resilience.

Financial Highlights

• Revenue: 92 million USD, down from forecasted 126 million USD.
• Earnings per share: -0.01 USD, missing the forecasted 0.02 USD.
• Stock price: Initially dropped by 6.4%, then recovered by 4.35%.

Earnings vs. Forecast

Nordic LEVEL Group’s Q2 2025 earnings revealed a stark deviation from forecasts, with an EPS surprise of -150% and a revenue shortfall of 26.98%. This significant miss highlights potential issues in the company’s operational execution or market conditions.

Market Reaction

The immediate market reaction saw Nordic LEVEL Group’s stock price fall by 6.4%, reflecting investor disappointment with the earnings miss. However, the stock later recovered by 4.35%, suggesting some investor confidence or market correction. The stock’s current price remains closer to its 52-week low, indicating ongoing challenges.

Outlook & Guidance

The earnings call provided limited forward guidance, with executives mentioning technology leveraging but lacking specific strategic initiatives or financial projections. The absence of clear guidance leaves investors uncertain about the company’s future direction.

Executive Commentary

• "We are seeing as the tommaker order stock, is 50%," stated an unknown speaker, suggesting potential inventory or supply chain issues.
• "Cross selling in the organization," highlighted another speaker, indicating possible strategic shifts towards internal growth opportunities.

Risks and Challenges

• Significant earnings and revenue miss may impact investor confidence.
• Lack of clear strategic guidance or detailed financial metrics.
• Volatile market conditions and unclear competitive positioning.
• Potential operational inefficiencies or supply chain issues.
• Broader economic pressures affecting market performance.

Q&A

The earnings call transcript lacked a clear Q&A section, leaving analysts and investors with unanswered questions regarding the company’s strategic direction and operational challenges.

Full transcript - Nordic LEVEL Group AB (LEVEL) Q2 2025:

: I mean, I think that we’ve got the outlook then, Florgan, for your perspective to your board at

: we are seeing as the tommaker order stock, is 50%. Ork or fat stock, which is 12%. So, the goal is persist of the HoloLatom Janskar. And branch become a volatile, Merlin Kwatallen.

: Next level.

: Next level,

: have not really started and cross selling in the organization and also the unit health technique. Blustening for Myrutetra and Varun. So two, that complement their technology and for advisory. So technology, the absolute start is on the leverage and then we can leverage it to some months. Afar.

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