Slides
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1 Quarter characterized by weak demand in the US and EMEA Profoto Q3 report 2025 October 23, 2025
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Today's speakers Anders Hedebark anders.hedebark@profoto.com CEO 2 Amanda Åström amanda.astrom@profoto.com Head of IR Linus Marmstedt linus.marmstedt@profoto.com CFO
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• Net sales decreased by 28 percent to SEK 119m (164). Organic growth was negative 23 percent: o Weak demand in Americas and EMEA driven by continued macroeconomic uncertainty and dealer inventory build-up in the second quarter. • Adjusted EBIT was SEK -10m (30), corresponding to an EBIT margin of -8 percent (18). EBIT was SEK -57m (39): o Result is affected by the negative sales trend, increased COGS due to tariffs, and a changed relationship between capitalization and depreciation. • Adjustments for the quarter amounted to SEK 47m (-9), related to impairment of intangible assets of SEK 41m and restructuring costs of SEK 6m. Q3 summary 3Photo credit: Ahmad Barber + Donté Maurice Photo credit: Kate Whyte
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Weak demand in our largest markets • USA demand below expectations: o Explained by previous dealer inventory build-up ahead of tariff changes, and strong sales of new products in the second quarter. • Cautious dealers and end customers in EMEA: o Sustained macroeconomic uncertainty and sales effects from new launches in the previous quarter had an impact on demand. • Positive development in APAC: o A number of major customer deliveries drives positive development. Quarter 4 32 33 51 42 81 44 Q3 2024 Q3 2025 164 119 -28% Americas EMEA APAC Americas EMEA APAC Group Organic growth -40.6% -15.1% 10.8% -22.6% Currency effect -5.0% -2.5% -8.6% -4.9% Total change -45.6% -17.6% 2.1% -27.5%
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Sales down 11% organically on a year-to date basis • The period is affected by trade policy volatility and macroeconomic uncertainty, which has dampened demand in Americas and EMEA. • Individual quarters are affected by different factors, such as inventory build up at our dealers ahead of tariff increases and product launches. YTD 5 109 102 187 171 234 181 YTD 2024 YTD 2025 530 454 -14% Americas EMEA APAC Americas EMEA APAC Group Organic growth -18.7% -5.1% -2.3% -10.5% Currency effect -4.0% -3.2% -4.8% -3.9% Total change -22.7% -8.2% -7.1% -14.4%
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With customer needs changing, we remain focused on delivering relevant solutions Profoto LED Portfolio L1600D Expected launch Q4 L600C Expected launch Q4 L600D Expected launch Q4 LP2000C Expected launch Q1 Photo credit: Julien Apruzzese 6 • The move towards more LED-based solutions is continuing. • We are well positioned for this change with our recently launched LED portfolio. o Expected to start shipping in Q4 this year. • We are taking a clear strategic step in meeting changing customer demands to secure long-term growth.
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Earnings affected by low sales volume and negative operational leverage Q3 2025 Net sales Q3 SEK 119m (164) -27.5%1 Adj. EBIT Q3 SEK -10m (30) Adj. EBIT margin Q3 -8.4% (18.4) 1. Organic growth -22.6%. 7 172 20% Q3 204 25% Q4 171 20% Q1 196 19% Q2 164 18% Q3 200 26% Q4 164 10% Q1 171 11% Q2 119 -8% Q3 Sales Adj. EBIT margin 2023 2024 2025
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Net sales down 11%, adj. EBIT margin 12% LTM Net sales LTM SEK 654m (734) -10.9%1 Adj. EBIT LTM SEK 77m (152) Adj. EBIT margin LTM 11.8% (20.6) 1. Organic growth -8.7%. 8 813 29% Q3 787 26% Q4 23% Q1 742 21% Q2 734 21% Q3 12% 724 Q3 17% Q4 729 700 21% Q2Q1 731 19% Sales Adj. EBIT margin 2023 2024 2025 645
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• Previously announced cost savings are being executed according to plan. o Cost base will be reduced by SEK 80m to approximately SEK 320m, corresponding to a 20 percent reduction. • Restructuring of the Dutch subsidiary StyleShoots and impairment of intangible assets will result in an annual reduction in depreciation of approximately SEK 10m. • Revaluation of assets related to a limited number of products. • We maintain a strong balance sheet, with a net debt to EBITDA ratio of 1.4x at the end of Q3. 9 Several actions taken to meet changing market conditions Adjustments SEKm Restructuring costs (StyleShoots) 6 Impairment of acquisition overvalues (StyleShoots) 11 Impairment of product portfolio (AB) 30 Total adjustments 47
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Cost saving initiatives are working – full impact to be realized in Q4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 20252 91 110 89 111 105 93 80 -28% Expenses1 • Savings plan announced in April is expected to reduce cost base by approx. 20%: o Corresponding to an improved cash flow of SEK 60-80m on an annualized basis. o Of which approximately SEK 30m will positively affect EBIT. • Full effect to be visible in Q4. 1. Personnel cost and other external costs, 2. SEK 3m adjusted for reorganization in Dutch subsidiary10
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11 A change in the ratio between capitalization and amortization affects EBIT negatively Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 21 -15 31 -15 26 -14 35 -15 34 -15 25 -18 15 -19 6 16 13 20 20 7 -5 Capitalizations Amortizations Net effect • A shift in the ratio between capitalizations and amortization is putting pressure on earnings. • This is the result of a change in the capitalization rate within R&D and the initiation of amortization on products launched during the year. • Impairments will reduce annual amortizations by approx. SEK 10m from Q4.
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• Weak demand in our largest markets. • A change in the ratio between capitalization and amortization affects EBIT negatively. • Several actions taken to meet new market conditions. • Previously announced cost savings are being implemented according to plan. • We continue to invest in the next technology shift to meet the transition that the market is undergoing. To summarize Photo credit: Joyce Charat Photo credit: Julien Apruzzese
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Questions 13 Photo credit: Lindsay Adler
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Year-end report, February 11, 2026 14 14 Amanda Åström amanda.astrom@profoto.com Head of IR
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