Slides
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Photo text Bold 32 pt 1 High activity in a still challenging market Profoto year - end report 2025 February 11, 2026
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Headline 40 pt Additional text area 26 pt Today's speakers Anders Hedebark anders.hedebark @profoto.com CEO 2 Linus Marmstedt linus.marmstedt@profoto.com CFO
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Additional text area Regular Max 20 pt Min 16 pt Headline Bold 32 pt • Net sales decreased by 19 percent to SEK 163m (200). Currency effect was negative 9 percent: o Q4 showed some recovery from weak Q3, but still behind previous year. o Particularly weak demand in Americas. • Adjusted EBIT was SEK 16m (52), corresponding to an EBIT margin of 10 percent (26). • Result is affected by the negative sales trend, but a lower cost base mitigates the effect. • Legal costs of SEK 7m incurred in Q2 - Q4 but invoiced in Q4 put pressure on EBIT in the quarter. • LED launched in late Q4, limited financial effect in the quarter as previously communicated. Q4 summary 3 Photo credit: Ahmad Barber + Donté Maurice Photo credit: Kate Whyte
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt Three key LED products started shipping late Q4 Profoto LED Portfolio L1600D Launched end Q4 L600C Launched end Q4 L600D Launched end Q4 ProPanel 3X2 Expected launch Q1 Photo credit: Julien Apruzzese 4 • With the introduction of our LED product range we are taking a clear strategic step in meeting changing customer demands to secure long - term growth. • The L1600D, L600C and L600D all started shipping in late Q4, and had little impact on the sales outcome for the quarter. • The ProPanel 3X2 is expected to start shipping in late Q1 2026 with financial effects from Q2 2026.
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt Half of 19% decline in sales from currency effects • Positive organic growth in APAC: o Positive organic growth, but negative currency effect dampens overall performance. • Relatively stable demand in EMEA: o Stable demand compared with the previous quarter, despite an organic sales decrease of 7 percent • USA demand continues to disappoint: o Cautious market prevails amid uncertain economic and political conditions Quarter 5 35 32 76 68 88 63 Q4 2024 Q4 2025 200 163 - 19% Americas EMEA APAC Americas EMEA APAC Group Organic growth - 17.8% - 6.9 % 1.3 % - 9.3% Currency effect - 10.5% - 4.6 % - 11.3 % - 9.3% Total change - 28.2 % - 11.5 % - 9.9 % - 18.6%
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt 2025 showing the same geographical characteristics • Sales throughout 2025 were negatively affected by significant trade policy and economic uncertainty, which led to weak demand, particularly in the USA. • During the year, it was also noted that certain Asian players have continued to strengthen their positions in the market through aggressive pricing strategies and substantial discounts, further intensifying competition. Full year 6 145 133 263 239 323 245 Full year 2024 Full year 2025 731 617 - 16% Americas EMEA APAC Americas EMEA APAC Group Organic growth - 18.1 - 5.8% - 1.5% - 10.4% Currency effect - 5.9% - 3.7% - 6.4% - 5.2% Total change - 24.0% - 9.5% - 7.8% - 15.6%
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt Q4 sales and EBIT a clear improvement from Q3 Q4 2025 Net sales Q4 SEK 163(200) - 18.6% 1 Adj. EBIT Q4 SEK 16(52) Adj. EBIT margin Q3 9.8% (26.0) 1. Organic growth - 9.3%. 7 204 25% Q4 171 20% Q1 196 19% Q2 164 18% Q3 200 26% Q4 164 10% Q1 171 11% Q2 119 - 8% Q3 Q4 10% 163 Sales Adj. EBIT margin 2023 2024 2025
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt Net sales down 16%, adj. EBIT margin 6% LTM Net sales LTM SEK 617m (731) - 15.6% 1 Adj. EBIT LTM SEK 41m (153) Adj. EBIT margin LTM 6.6 % (20.9) 1. Organic growth - 10.4%. 8 787 26% Q4 729 23% Q1 21% Q2 734 21% Q3 731 21% Q4 724 7% 12% 700 Q3 742 Q1 Q4 Q2 19% 654 17% Sales Adj. EBIT margin 2023 2024 2025 617
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt Full impact of cost savings measures realized in Q4 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 2,3 Q3 2025 2 Q4 2025 2 91 110 89 111 105 95 82 75 - 29% Expenses 1 • Cost saving efforts now in full effect – costs in Q4 were 29% lower than in Q1. • At current level we are tracking annual costs of SEK 300m. • Legal costs of SEK 7m incurred in Q2 - Q4 were billed in full in Q4 – period allocated in the graph 1. Personnel cost and other external costs, 2. Legal costs of SEK 7m invoiced in Q4 period allocated in Q2 - Q4 3. SEK 3m adjusted for reorganization in Dutch subsidiary 9
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt 10 Low rate of capitalizations in the quarter Q1 2024 16 Q2 2024 13 Q3 2024 20 Q4 2024 20 Q1 2025 7 Q2 2025 - 5 Q3 2025 - 7 Q4 2025 6 - 15 31 - 15 26 - 14 35 - 15 34 - 15 25 - 18 15 - 19 9 - 17 21 Capitalizations Amortizations Net effect • A shift in the ratio between capitalizations and amortization is putting downward pressure on EBIT. • This is the result of a change in the capitalization rate within R&D and to some extent the initiation of amortization on products launched during the year.
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt • Strong focus on cash flow means we’ve maintained a strong cash position throughout the year. o Operating cash flow in Q4 2025 SEK 37m (38) • Net debt decrease from SEK 235m to SEK 181m in the year. • Cash conversion in Q4 2025 far exceeds that of Q4 2024, an effect from decrease in working capital by SEK 32m 11 Strong cash conversion despite drop in earnings Q4 2024 Q4 2025 65% 238% Cash conversion 1 1. Cash conversion defined as operating cash flow divided by EBIT
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt 12 Updated financial targets as we enter a new era In light of changing market conditions and our strategic shift toward LED, the Board has decided to update the financial targets. Profoto will deliver long - term organic growth that exceeds 5% per year, driven by new technology and new customer segments. At the same time, the company shall deliver a 20% EBIT.
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Headline Bold 32 pt Text area Regular Max 20 pt Min 16 pt • LED launches going to plan. • More intense competition from low price Chinese players. • Successful implementation of cost savings plan. • Strong cash conversation in the quarter despite earnings drop. • Updated financial targets in light of a changing market. To summarize Photo credit: Joyce Charat Photo credit: Mira & Thilda Berglind
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Headline 40 pt Additional text area 26 pt Questions 14 Photo credit: Lindsay Adler
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Headline 40 pt Additional text area 26 pt Annual report, April 9, 2026 15 15 Linus Marmstedt linus.marmstedt@profoto.com CFO
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