iZafe Group AB (publ.) today, November 3, presents its report for the third quarter.

Summary of financial development

• Total net revenue for the quarter amounted to 1,102 TSEK (2,031) and consisted entirely of recurring license revenues, with no hardware sales during the period. This stands in clear contrast to the same quarter last year, when revenues were largely derived from hardware sales. The development demonstrates that iZafe has now successfully established a scalable and stable business model based on recurring revenues. At the beginning of the fourth quarter, the company’s ARR amounted to approximately 7 MSEK — a fourfold increase since the start of the year — and the company remains well on track to reach 10 MSEK in ARR during Q4, which will be reflected in the next period. According to the purchase price allocation, the acquired company had net revenue of approximately 1 MSEK that was not consolidated in Q3 but will contribute to revenues in future reports.
• Operating result (EBIT) for the quarter amounted to -3,273 TSEK (-4,148).
• Earnings before depreciation and amortization (EBITDA) for the quarter amounted to -2,297 TSEK (-3,166), representing a clear improvement despite lower net sales compared with the same period last year. The improvement reflects a more efficient cost structure and a strengthened focus on profitable growth.
• Result after financial items for the quarter amounted to -3,537 TSEK (-4,955).
• Cash flow from operating activities for the quarter amounted to -2,890 TSEK (-2,913).
• Earnings per share for the quarter before/after dilution amounted to -0.01 SEK (-0.02).
• Equity per share at the end of the period amounted to 0.05 SEK (0.06).
• The equity ratio at the end of the period was 41.0% (58.0%).

Significant events during the quarter

• iZafe Group AB has acquired its exclusive distributor in the Netherlands, Thuisapparatuur Nederland B.V., which now becomes a wholly owned subsidiary under the name Dosell B.V. The acquisition strengthens growth, margins, and cash flow and is carried out without any dilution for shareholders. Through this transaction, iZafe estimates that the target of reaching an ARR of 10 MSEK can be achieved already in Q4 2025, earlier than planned, while the company now receives the full revenue from the sale of Dosell in the Dutch market — Europe’s largest and fastest-growing market for digital medication management.
• iZafe Group AB has signed an agreement with AddSecure Smart Care Oy for the distribution of the medication-dispensing robot Dosell in Finland. The partnership provides iZafe with access to a well-established player in the welfare technology sector and marks a strategic step in the company’s international expansion, aiming to meet the growing demand for safe and efficient medication management in the home.
• iZafe Group AB has launched an exclusive shareholder offer in which private individuals holding shares valued at a minimum of 50,000 SEK are offered a complimentary Dosell unit with a subscription. The initiative aims to reward shareholder loyalty and provide more people with the opportunity to experience the benefits of the company’s solution for safe and reliable medication

Significant events after the end of the quarter

• iZafe Group AB announces that the company’s board members have jointly acquired 156,000 Class B shares at an average price of approximately 0.55 SEK per share. The acquisition underscores the board’s shared commitment and strong confidence in the company’s strategy and future growth.

CEO’s comment
We enter the final quarter of the year with strong momentum, rapid growth, and a business model now fully built on recurring revenues. Revenue now consists entirely of subscription income, providing stability, predictability, and scalability as the number of active Dosell units continues to increase.

At the start of the year, our Annual Recurring Revenue (ARR) was approximately 1.7 MSEK. At the beginning of the fourth quarter, ARR had reached around 7 MSEK — a fourfold increase in less than nine months. The growth rate continues to accelerate month by month, and we expect ARR to increase by at least 1 MSEK per month for the remainder of the year. The recently completed acquisition in the Netherlands further strengthens this development, with the acquired company having net revenue of approximately 1 MSEK that was not consolidated in Q3 but will contribute to revenues in upcoming reports. This clearly demonstrates that our strategy is working, that the market is growing rapidly, and that we offer a solution that truly makes a difference.

Sweden – a growing customer base and strong pipeline
During the autumn, demand for Dosell has increased significantly, and we are now experiencing strong momentum in the Swedish market. Several municipalities that conducted pilot projects earlier in the year have transitioned to full-scale operations, while an increasing number of municipalities are initiating Dosell as part of their regular medication management routines.

To meet the growing interest, we have strengthened our team with an additional sales representative focused on following up on incoming inquiries, developing leads, and driving sales to new municipalities. We currently have several municipalities ready to start pilot projects with Dosell, and additional quotations have already been submitted to enable procurement once the upcoming ADDA tender becomes active. This tender, with a new submission date of November 10, is a strategically important milestone with the potential to reshape the digital medication management market in Sweden – and Dosell is well positioned to take a leading role in this transformation.

We continue to sell both directly and through our partners, allowing us to reach more customers faster and further broaden our customer base. The combination of strong incoming demand, proven results from existing installations, and close collaboration with partners provides a solid foundation for continued growth.

The Netherlands – a strategic acquisition that strengthens the group
During the quarter, we completed the acquisition of our former distributor in the Netherlands, which now operates under the name Dosell B.V. The acquisition was a natural and strategically important milestone – both to strengthen profitability and to deepen our connection to the market. The Dutch team has quickly integrated into our organization and is already contributing to continued growth, improved margins, and stronger cash flows.

With this step, we have taken control of one of our most successful markets and laid the foundation for further expansion in the Benelux region. The combination of local engagement and centralized management allows us to grow faster, more efficiently, and with higher quality.

Focus on Dosell – while Pilloxa is ready to scale
Throughout the year, we have chosen to focus entirely on ensuring Dosell’s success. It has proven to be the right decision – the product has now been established as a leading solution for safe medication management, and we are seeing the results in the form of growing revenues and strong confidence from both partners and customers.

At the same time, there is significant potential in Pilloxa, our regulatory-approved platform for digital patient support programs. Pilloxa already has active customers and collaborations within the pharmaceutical industry, and we see great opportunities to further develop this business area in 2026. With the financial strength generated by Dosell’s growth, we will be able to dedicate more time and resources to scaling Pilloxa going forward.

While Dosell provides safety and reliability in the home, Pilloxa enables digital patient support and data-driven follow-up — together addressing the entire healthcare chain.

Looking Ahead – Strong Growth and Increasing Cash Flows
We stand stronger than ever. Our growth is now entirely driven by recurring revenues, our business model is proven to be scalable, and we have established a solid foundation across multiple markets. Going forward, our focus is on continuing to grow rapidly yet profitably, building cash flow, and ensuring that iZafe secures a leading position in Europe for digital medication management.

Our improved cost structure and growing share of recurring revenues provide us with a solid foundation to continue expanding in a controlled and sustainable way. By maintaining a focus on profitable growth and efficient resource utilization, we can continue investing in our key markets while creating long-term value for our shareholders.

Strategic Partnerships for European Expansion
Earlier this year, we signed a Letter of Intent with the German company JDM Innovation GmbH, part of the PHOENIX group – Europe’s leading player in pharmaceutical distribution and pharmacy operations. The aim of the collaboration is to integrate our medication dispenser Dosell with JDM’s Smila into a shared platform for home medication management.

The dialogue around this partnership is ongoing and remains highly relevant. With PHOENIX group’s presence in 29 European countries, there is a strong foundation for future expansion. We see great opportunities in combining our technology with their logistics and distribution network, which could accelerate the rollout of Dosell in new markets across Europe.

Expansion on Multiple Fronts
In parallel with our strong development in Sweden and the Netherlands, we continue to strengthen our position in other European markets together with our partners. In Finland, we are working closely with AddSecure Smart Care to promote the adoption of digital medication management within healthcare and social care, while our collaboration with Ti Medi in Spain focuses on broadening our market presence and making Dosell available to consumers.

At the same time, several dialogues and proposal processes are underway to establish Dosell in additional European countries, where we are seeing rapidly growing interest in secure, connected, and scalable solutions for medication management at home. This demand confirms that we are in the right place at the right time – and that our technology addresses a genuine need in both public and private healthcare.

We are now in a position where growth is accelerating on all fronts. With a strong product portfolio, a proven business model, strategic partnerships, and a dedicated team, we enter 2026 with full focus on delivering on our goals and solidifying our position as the leading provider of digital medication management in Europe.

I would like to extend my sincere thanks to our entire team, our partners, and our shareholders for your commitment and trust. Together, we are building the future of medication management – and we are only at the beginning of the journey.

Anders Segerström
Chief Executive Officer, iZafe Group

Contacts

Anders Segerström, Chief Executive Officer 
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12

iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm

E-mail: ir@izafegroup.com
www.izafegroup.com
eucaps.com/izafe-group

About iZafe Group AB (publ.)

iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.

The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution Pilloxa with the smart pillbox. The company's solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.

The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.

iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. The company’s Certified Adviser is DNB Carnegie Investment Bank AB. Further information is available at www.izafegroup.com

This information is information that iZafe Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-11-03 08:30 CET.

Image Attachments

Q3 Bild

Attachments

Interim Report Q3 2025
interview Q3 2025

Läs mer på MFN