Slides
Page 1
Lemonsoft Oyj Focus on organizational and sales development Q3 Interim Report – January-September 2025
Page 2
Q3’25: Weakened sales performance - profitability improved as planned Financial development Net sales growth declined 3.4%, driven by lower transaction income and consulting and other income, while SaaS income increased by 2.3% demonstrating resilience in the core subscription base. Net sales was purely organic in Q3 Share of recurring revenue increased from 84.6% to 87.3% Gross margin decreased from 87.4 % to 83.1 %, impacted by lower consulting revenue and still higher platform costs after the Azure transition Adjusted EBIT increased from 33.9% to 35.1%, mainly due to lower personnel costs Headcount decreased to 196 in Q3 as reductions from the Q2 change negotiations took effect Main events Individual key recruitments completed, including new Chief Sales Officer and Business Director for subsidiary Finvoicer Group Recurring revenue 87.3% (84.6%) Net sales growth -3.4% (7.2%) Gross margin 83.1% (87.4%) Adj. EBIT 35.1% (33.9%) 3 Personnel 30.9.2025 196 (231)
Page 3
6,4 5,9 6,2 6,8 7,4 6,9 7,0 7,3 7,7 7,6 7,4 7,1 0,0 2,0 4,0 6,0 8,0 10,0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 Net sales MEUR 22,5 23,5 24,3 25,3 26,3 27,3 28,2 28,7 28,9 29,6 30,0 29,7 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 RTM1) net sales Net sales growth decreased slightly due to lower transaction and consulting income – the share of recurring revenue continues to grow 1) RTM = Rolling twelve months 4 73,2 % 11,5 % 15,4 % 77,5 % 9,8 % 12,7 % Revenue split SaaS Transactions Consulting and other Recurring revenue 87% (85%) 2025 Q3 2024 Q3
Page 4
Focus on developing the organization and sales in Q3’25 Technology transition Performance issues fully resolved by the end of Q3 Platform optimization measures continue as a continuous operation Focus towards developing LemonOnline the leading cloud ERP for SMEs Sales and customers New customer care model established – investments to turn customer service into a long-term competitive advantage Increased investments in sales initiatives from the end of Q3 onwards Subsidiaries Finvoicer management transition completed Invoice financing volumes significantly lower during the summer Capital efficiency Buyback program continued – lower liquidity limits volumes Organizational development The organizational changes were finalized in Q3 following the Q2 change negotiations Individual key recruitments completed, including new Chief Sales Officer and Business Director for subsidiary Finvoicer Group Product development Release cycle significantly accelerated after the Azure transition First GenAI-powered features in ERP released – continuous pipeline for new features in development
Page 5
Financials
Page 6
13,0 17,0 19,1 20,8 5,4 5,5 1,1 1,2 2,3 3,3 0,8 0,7 3,1 4,4 4,9 4,8 1,1 0,9 17,2 22,6 26,3 28,9 7,3 7,1 2021 2022 2023 2024 Q3/24 Q3/25 SaaS Transactions Consulting and other Net sales reached EUR 7.065 million, down 3.4% from EUR 7.315 million in Q3’24 SaaS revenue continued to grow by 2.3% Organic growth for the quarter was −3.4%, reflecting decline in consulting and transaction-based revenue Organic growth of recurring revenue was slightly negative at -0.4% due to challenges in transaction growth Transaction revenue lower mainly due to lower invoice financing volume SaaS growth continued – Lower transaction and consulting income turned organic growth negative Performance Overview – Q3’25 7 MEUR 44.9 % 16.9 % 15.4 % 18.8 % CAGR
Page 7
100,0 % 0,6 % 1,3 % -1,4 % 100,6 % 06/2025 New Sales Net Downsell/Upsell Churn 09/2025 ARR growth stabilized — investments in sales initiatives have not yet translated into an increase in new sales 22,2 22,3
Page 8
1,3 % 2,4 % 2,9 % 6,7 % 7,2 % 7,2 %9,3 % 8,1 % 9,5 % 12,2 % 9,9 % 9,1 % 47,0 % 46,8 % 46,9 % 49,0 % 42,3 % 35,2 % 11,0 % 11,4 % 13,5 % 13,6 % 12,6 % 16,9 % 68,6 % 68,7 % 72,7 % 81,5 % 72,0 % 68,5 % 2021 FAS 2022 IFRS 2023 IFRS 2024 IFRS Q3/24 IFRS Q3/25 IFRS Costs as % of net sales Depreciation and amortisation* Other operating expenses** Employee benefit expenses Materials and services Gross margin decreased from the previous year to 83.1%, affected by increased platform costs after the platform transition Personnel expenses decreased compared to the reference period as a result of the personnel reductions implemented in Q2. The effects of these measures were reflected as expected in the third quarter results. Employee benefit expenses and materials and services affected in total by 128 KEUR of capitalized development expenses Cash flow from operating activities was EUR 969 thousand (347) highlighting stronger working capital management Overall cost base improved driven by restructuring efforts – Azure transition continued to pressure gross margin Cost structure 9 * adjusted to exclude amortisation of intangible assets related to business combinations (IFRS) * adjusted to exclude depreciation related to merged group companies and amortisation of goodwill (FAS) ** adjusted to exclude M&A expenses +/- Other significant non-recurring items affecting comparability
Page 9
153 184 208 228 230 223 196 2021 2022 2023 2024 Q1'2025 Q2'2025 Q3'2025 Number of employees R&D 49 % Customer functions 42 % Other functions* 9 % Personnel by function Full impact of change negotiations on headcount and cost savings mostly realized during Q3 Individual key recruitments have been completed in Q3, including Chief Sales Officer and Finvoicer’s Business Director Leaner organization after the change negotiations in Q3 – individual key recruitments completed Selected changes to improve performance 10 * Other functions includes financial administration, HR, information management and business development
Page 10
More information Publication of investor calendar for 2026 before year-end Upcoming events in 2025 Investor Relations contact Alpo Luostarinen CEO alpo.luostarinen@lemonsoft.fi +358 50 911 3507 Mari Erkkilä CFO mari.erkkila@lemonsoft.fi +358 40 768 1415 Links Visit our investor website: investors.lemonsoft.fi 11