Strong Sales growth and EBITDA improvement

July - September 2025

• Net sales amounted to SEK 99.1 (79.1) million, an increase of 25%. Organic growth was a solid 33% in the quarter. FX impacted sales with SEK -6.4 million in the quarter. 
• Gross profit amounted to SEK 86.4 (70.5) million, and gross margin amounted to 87% (89%). 
• EBITDA improved to SEK 11.5 (-17.4) million. FX impacted EBITDA with SEK -2.7 million. 
• Operating results amounted to SEK -29.9 (-61.5) million, whereas the amortization of the surplus value, regarding acquisition of Affectiva and iMotions, amounted to SEK -26.2 (-28.8) million. 
• Result after tax amounted to SEK -30.7 (-53.9) million. Recognized deferred tax income offset higher interest expenses in the quarter. 
• Number of shares has increased to 37,953,933 due to issuing new shares referring to the share incentive program 2022. 
• Cash and cash equivalents amounted to SEK 24.7 million at the end of September. The available cash ending balance, including unutilized credit facilities, amounted to SEK 106.5 million. In September the company acquired a new credit facility of SEK 50.0 million. 
• During the quarter Smart Eye has been nominated as Software Tier-1 for a North American car manufacturer. After the quarter, nomination committee of Smart Eye have been appointed. 

January - September 2025

• Net sales amounted to SEK 281.3 (254.8) million, an increase of 10% compared to the corresponding period the previous year. Organic growth amounted to 16% and the FX affected the Net Sales negative with SEK -14.4 million in the period. 
• Gross profit amounted to SEK 249.1 (228.8) million, an improvement of SEK 20.3 million compared to last year. Gross margin amounted to 89% (90%). 
• EBITDA improved to SEK -5.4 (-63.7) million. FX had a negative impact on EBITDA with SEK -9.5 million. Without the FX impact, the company would have been able to report an accumulated positive EBITDA YTD in September. 
• Operating results amounted to SEK -131.9 (-187.2) million, whereas the amortization of the surplus value, regarding acquisition of Affectiva and iMotions, amounted to SEK -81.7 (-86.5) million. 
• Result after tax amounted to SEK -123.2 (-164.6) million. Recognized deferred tax income offset higher interest expenses in the period. 

Comments from the CEO

The third quarter saw increased growth levels. Last quarter the organic growth rate excluding FX-effects was 12%, this quarter it increased to 33%. Both our business areas were advancing well, Behavioral Research with 18% and Automotive with 61%. The strong growth is almost exactly at the anticipated level thanks to the fact that the visibility of the rollout of our customers’ production programs have increased over time. Most of the growth in the business area Automotive comes from licenses. Since they come with 100% gross profit, the EBITDA increased accordingly, up to +11,5 MSEK. Without FX effects, comparable EBITDA came in at 14 MSEK, 32 MSEK better than the same quarter last year. We are truly on the right track. The OPEX was at the planned level. No further savings are expected at this point in time. 

Automotive 
The license revenues continue to rise, thanks to the rollout of more and more car programs. Although many of our customers have faced delays, the approaching EU regulatory deadline in July 2026 is now driving production forward — cars must start rolling out of the factories. This is why we are growing with 61% organically, and the license revenue growth is well above 150%. We have exceeded 105 car models that have entered into production with 15 OEMs. 

We are also seeing green shoots for our fleet and aftermarket business AIS. The order intake has increased, and we are starting to ramp up the first OEM programs in Q4. Commercial vehicles are likewise affected by the EU rules coming into effect mid next year. 

Behavioral Research 
The business area made a strong comeback after the slow start of the year. We are increasing our market share in a very challenging environment, growing at a solid 18% organically. 

It’s especially our multimodal software solutions that are gaining ground, indicating that a more holistic understanding of human behavior is taking hold, supporting long-term structural growth. 

At these levels we are increasing our market share. The business area is currently growing with profitability and positive cash flow. 

Final Words 
Q3 was the quarter where we expected to be EBITDA positive for the first time in a decade, but the strong ramp up helped us to achieve this already one quarter earlier. Now in the third quarter we are solidly on the positive side with +11.5 MSEK and we are not looking back. We expect to have an even stronger Q4 fueled by more licenses and stronger Behavioral Research. We will maintain tight cost control. As license revenue grows, our cash flow will steadily improve. We have a conservative plan in place for how to finance the company in the near term as we are slowly but surely reaching firm ground, the first company in the industry to do so. We ended the quarter with 107 MSEK in cash and credit facilities, sufficient for now. 

Smart Eye has bridged the gap of scaling up the business, creating a solid foundation for future growth, unique in the industry. The consolidation of the Interior Sensing industry is ongoing. Several companies have either merged or sold whole or parts of their business to industry peers. We monitor the development closely, but only if exceptional opportunities occur, to further secure our leadership, will we consider participating actively. 

Martin Krantz CEO Smart Eye 

Find the full report and all previous financial reports at https://smarteye.se/investors/financial-reports/

The company will comment on its quarterly results during the earnings call hosted by Redeye, taking place live online at 11:00 on November 14, where the CEO and CFO will present the results and answer questions. 

For more information:

Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se

About Smart Eye

Smart Eye is the leading provider of Human Insight AI, technology that understands, supports and predicts human behavior in complex environments. The company is on a mission to bridge the gap between humans and machines for a safe and sustainable future. Supported by Affectiva and iMotions – companies it acquired in 2021 – Smart Eye’s multimodal software and hardware solutions provide unparalleled insight into human behavior.

In automotive, Smart Eye’s driver monitoring systems and interior sensing solutions improve road safety and the mobility experience. The company’s eye tracking technology and iMotions biosensor software platform are also used in behavioral research to enable advanced research in academic and commercial sectors. In media analytics, Affectiva’s Emotion AI provides the world’s largest brands and market researchers with a deeper understanding of how consumers engage with content, products, and services.

Founded in 1999, Smart Eye is a global company headquartered in Sweden, with customers including NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Polestar, Geely, Harvard University, 26 percent of the Fortune Global 500 companies, and over 1,300 research organizations around the world. 

Visit www.smarteye.aifor more information. 

Visit our investor web for more financial information: https://smarteye.se/investors/

Smart Eye is listed on the Nasdaq First North Growth Market. The Company’s Certified Adviser is Bergs Securities AB.

This information is information that Smart Eye 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 2025-11-14 07:00 CET.

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