Earnings call transcript: Shape Robotics Q2 2025 sees revenue drop

Shape Robotics, a leading provider of educational technology with a market capitalization of $43.25 million, reported its Q2 2025 earnings, revealing a 16% year-on-year decrease in revenue to DKK 60 million. Despite this decline, the company achieved a positive net result of DKK 13.5 million and a record EBITDA of DKK 50.8 million over the last 12 months. The stock price of Shape Robotics fell by 5.78% following the earnings call, closing at DKK 17.3. According to InvestingPro analysis, the company has demonstrated strong profitability over the last twelve months, though its stock movements remain notably volatile.

Key Takeaways

• Q2 2025 revenue decreased by 16% year-on-year to DKK 60 million.
• Record EBITDA of DKK 50.8 million over the last 12 months.
• Stock price dropped by 5.78% after earnings release.
• Secured significant financing and strategic agreements in Europe and Asia.

Company Performance

Shape Robotics experienced a challenging quarter with a 16% drop in revenue compared to the previous year. The company managed to maintain a strong financial position with a positive net result and a record EBITDA for the last 12 months, supported by an impressive revenue growth of 80% over the last twelve months. The company continues to expand its presence in key markets such as Europe and Asia, leveraging strategic partnerships. InvestingPro data reveals the company maintains a healthy current ratio of 1.15, indicating solid short-term liquidity. For deeper insights into Shape Robotics’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Revenue: DKK 60 million, a 16% decrease year-on-year.
• Last 12 Months EBITDA: DKK 50.8 million.
• Positive Net Result: DKK 13.5 million.
• Contribution Margin: 52%, a 76% increase year-on-year.
• H1 2025 Revenue: DKK 129.7 million, a 22% growth.

Market Reaction

Following the earnings announcement, Shape Robotics’ stock price fell by 5.78%, closing at DKK 17.3. The stock has been trading between a 52-week high of DKK 26.9 and a low of DKK 8.85, with a beta of 1.67 indicating higher volatility than the market average. The decline in stock price may reflect investor concerns over the revenue drop, despite strong EBITDA performance. Based on InvestingPro’s Fair Value analysis, the stock appears to be currently undervalued, presenting a potential opportunity for value investors. The platform offers additional insights through its ProTips feature, with 6 more exclusive tips available to subscribers.

Outlook & Guidance

Shape Robotics has set a revenue guidance of DKK 360-410 million for 2025, projecting a growth of 20-35%. The company also forecasts an adjusted EBITDA between DKK 36-41 million, aiming for a 10% margin. Strategic expansion into Asia and the Middle East is expected to drive future growth.

Executive Commentary

CEO Mark Abraham emphasized the company’s strategic focus on high-margin solutions, stating, "Our strategic focus on high margin solutions is now paying off." Kristine, Head of Investor Relations, highlighted the company’s comprehensive tech education ecosystem, saying, "We now offer the global market a complete tech education ecosystem."

Risks and Challenges

• Revenue decline: A significant year-on-year revenue drop could impact investor confidence.
• Market expansion: Entering new markets in Asia and the Middle East presents logistical and competitive challenges.
• Economic conditions: Fluctuating economic conditions in key markets could affect sales and profitability.

Q&A

During the earnings call, analysts queried the company’s strategy to counteract the revenue decline and capitalize on growth opportunities in new markets. CEO Mark Abraham will host a LinkedIn live Q&A on September 3, 2025, to address further investor questions.

Full transcript - Shape Robotics AS (SHAPE) Q2 2025:

Kristine, Head of Investor Relations and Public Affairs, Shape Robotics: Welcome and thank you for joining today’s of SchaperBarg’s H1 twenty twenty five interim results. My name is Kristine and it’s my great pleasure to address our stakeholders today as the new Head of Investor Relations and Public Affairs at Schaeprobotics. Since I am Danish, I like to greet our Danish audience in Danish first. Euijen. And now back to English.

My main priority moving forward is to enhance our dialogue with investors, partners, political stakeholders and the wider market. My mandate and responsibility is to ensure transparency and timely updates as we move forward on this exciting journey. A journey that will, in the not so distant future, enable us to educate millions of students worldwide. It surely has been an exceptional 2025. We have delivered record performance, strengthening our margins, secured comprehensive financing and created powerful new partnerships.

The successful integration of Senaco, the latest member of the Shape Robotics family, has helped establish us as a leading global provider of educational technology. Let me begin with our key takeaways from the second quarter. We have achieved a record last twelve months performance, including the highest ever last twelve months reported EBITDA of DKK50.8 million and a positive net result of DKK13.5 million. Q2 specifically, we generated revenue of DKK16 million, including DKK41.9 9,000,000 from Techducator grant recognition, which has been requalified by the Romanian Ministry of European Funds. We delivered a high contribution market of 52% in Q2 and EBITDA

We successfully acquired Senaco through a strategic share swap and secured a new multi facility financing package approved by Unicredit. As our CEO, Mark Abraham, stated: Our strategic focus on high margin solutions is now paying off. We’re delivering both record high EBITDA and a positive net result, while also securing significant orders based on our increasingly efficient and comprehensive solutions. And now let’s dive deeper into our Q2 financial highlights. Revenue decreased to DKK60 million in Q2 twenty twenty five, down 16% year on year.

However, this reflects our strategic prioritization of profitability over volume growth. The growth we achieved was driven by expanding operations in Romania, particularly through the Smart Lab project, sales of services related to the Techducator concept and partial recognition of grants for services and teachers implementation. Our contribution market increased dramatically to DKK31 million, up 76% year on year, with contribution margin ratio reaching a high of 52%. Higher markings service revenue represented 12% of revenue in the first half of the year. Adjusted EBITDA increased to DKK14 million, up an impressive percent year on year.

Importantly, non nonrecurring costs were recognized to adjust EBITDA. This improvement was driven by revenue growth, contribution market enhancement and cost optimization activities. Looking at our financial guidance for 2025, I’m pleased to confirm we remain on track. For reported revenue growth, our 2025 guidance calls for 20% to 35%, representing DKK $360,000,000 to DKK $410,000,000. Our H1 twenty twenty five actual shows 22% growth at DKK 129,700,000.0.

For adjusted EBITDA margin, we maintained guidance of at least 10%, representing a minimum of DKK 36,000,000 to DKK 41,000,000. Our H1 twenty twenty five performance delivered 19% at DKK24.1 million. For EBITDA margin, our guidance is at least 8%, representing a minimum of DKK29 to DKK33 million. Again, we delivered 19% in H1 at 4,100,000.0. Now, let me update you on our key business developments.

In Q2, we completed the acquisition of the entire share capital of Sannaco through a strategic share swap. Sannaco is now powered by Shape Robotics, bringing their unique AI powered language learning technology into our ecosystem. We secured a comprehensive 8,800,000 finance package approved by UniCredit, including revolving working capital of €7,500,000 factoring facilities, credit lines and leasing facilities. This was activated in July 2025 to support our growth initiatives. We’re preparing a strategic framework agreement worth €30,000,000 with a leading IT distributor in Poland, positioning Shape Robotics as a potential supplier of advanced educational technology to Polish schools.

In our post Q2 developments, Shape Robotics secured an order worth €3,800,000 targeted at the Vietnamese school system, which is now purchasing 150 THINKEN laboratories supplemented by Senaco Connect. Let me walk you through our revenue composition and how product mix has evolved. In H1 twenty twenty five, we recognized grants for services and teacher implementation through Techducator, which was requalified by the Romanian Ministry of European Funds, corresponding to 32% of revenue at DKK 41,900,000.0. Services including Techlocated and Sanarco represented 12% of revenue in H1 twenty twenty five at DKK15 million. Sales of Faber robots reached 10% in H1 twenty twenty five, up from 9% in H1 twenty twenty four.

Our contribution margin reached 42% in H1 twenty twenty five compared to 24% in H1 twenty twenty four. We’ve seen significant deliveries of Smart Life equipment in Romania and notably THINKEN was introduced in Lenovo third party offering partner programme. Our ability to service revenue growth is well positioned across several key metrics: Net working capital amounted to million as of 06/30/2025, compared to DKK88 million as of 06/30/2024. We expect revenue growth of 20 to 35% in full year 2025, with improved Editor profitability supported by solid financial performance in H1 twenty twenty five. The solid financial performance in H1 twenty twenty five, increased in net working capital and comprehensive financing from Unit Credit Bank reflect our ability to support expected revenue growth with improvement in profitability in full year 2025.

We are on track to exceed our communicated DKK12 million to DKK15 million annual target at the current level of activity. Let me highlight why Shape Robotics represents a compelling investment opportunity. We provide intelligent classroom solutions and outstanding educational ecosystems with over 2,000 schools now equipped with our technology. Our Faber robot is the most famous modular educational robot globally, with over 25,000 Faber robots sold to date. We maintain continuous development of products to scale up the business, including new AI solutions.

We have strong partnerships with rolled, renewed brands, including our Lenovo third party offering partnerships. Our strong growth journey has been fueled by three strategic cross border acquisitions in Poland and Romania. The market opportunity is substantial: €13,800,000,000 will be invested in digitalisation of schools and STEAM learning by 2027 in the European Union alone. Looking ahead to our financial calendar, our next interim report for Q3 twenty twenty five will be published on 11/21/2025. For investor relations inquiries, please contact Adrian Rutaro, our Chief Legal Officer at at shaperobotics dot com.

On 09/03/2025 at 5PM Central European Time, our CEO, Mark Abraham, will host live streaming Q and A sessions on LinkedIn, answering questions from investors about the H1 twenty twenty five interim report. You may access the session as a webcast directly on the company’s LinkedIn page. Shape Robotics enters the second half twenty twenty five with robust momentum, enhanced margins, strengthening governance and unwavering commitment to deliver both innovation and shareholder value. We now offer the global market a complete tech education ecosystem combining theme education, advanced robotics and AI powered language learning. This comprehensive approach consolidates our position in Europe, strengthens our global outlook and creates significant new growth opportunities in both Asia and The Middle East.

Regions where students and teachers need to learn English at their first foreign language, while simultaneously accessing world class team learning solutions. We encourage all investors to join our upcoming Q and A session with CEO Mark Abraham and reach out with any questions regarding our performance, strategy or outlook. For any additional questions or direct enquiries, please contact our Investor Relations teams at irshaperobotics dot com. Thank you for your continued trust and support as we advanced our mission to transform global education through innovative technology solution. Tak for a day.

Thank you for your time.

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