Tobii AB ((SE:TOBII)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tobii AB’s recent earnings call conveyed a generally positive sentiment, highlighting significant improvements in key financial metrics such as cash flow, cost savings, and EBIT. Despite facing challenges in certain segments, the company’s overall financial health and strategic product launches suggest a promising future trajectory.
Improved Free Cash Flow
Tobii’s free cash flow for Q2 2025 saw a remarkable improvement of nearly SEK 200 million compared to Q2 2024. This boost was significantly supported by a SEK 100 million prepurchase agreement with Dynavox Group, underscoring Tobii’s strategic financial maneuvers.
Cost Reduction Success
The company achieved SEK 263 million in cash-related OpEx savings, surpassing its target of SEK 200 million. This success in cost reduction reflects Tobii’s commitment to enhancing operational efficiency and financial discipline.
Positive EBIT
Tobii reported a positive EBIT of SEK 24 million for Q2 2025, marking a substantial improvement of SEK 90 million compared to the same quarter last year. This positive EBIT highlights Tobii’s effective financial management and strategic focus.
Revenue Growth
The company experienced a 41% increase in net sales, with an impressive organic growth rate of 54% in Q2 2025. This robust revenue growth indicates Tobii’s strong market presence and successful business strategies.
Gross Margin Increase
Tobii’s gross margin improved to 83% from 79% last year, attributed to a favorable mix shift towards more Integrations business. This margin expansion demonstrates Tobii’s ability to optimize its product mix for better profitability.
New Product Launch
The launch of Glasses X, a cloud-native wearable eye tracker, is expected to enhance customer workflows in market research and training assessment. This product launch signifies Tobii’s innovation and commitment to meeting market demands.
European Union Homologation
Tobii achieved homologation in the European Union for its single camera DMS and OMS offering, enhancing its credibility in the automotive segment. This regulatory approval is a significant milestone for Tobii’s expansion in the automotive market.
Products & Solutions EBIT Impact
The Products & Solutions segment faced a negative EBIT impact due to a SEK 33 million write-down and experienced a negative trend in net sales, with uncertainties in the Americas and lower demand in gaming.
Nonrecurring Revenue Challenges
The Autosense segment’s revenue, primarily nonrecurring engineering revenue, resulted in a lumpy revenue profile. This highlights the challenges Tobii faces in stabilizing revenue streams in certain segments.
Gaming Revenue Decline
The Products & Solutions segment encountered lower demand in the gaming sector, contributing to an EBIT reduction. This decline points to challenges in maintaining demand within the gaming market.
Forward-Looking Guidance
In its forward-looking guidance, Tobii reported significant improvements in financial metrics compared to the previous year. The company maintained a positive EBIT on a rolling 12-month basis, with net sales increasing by 41% and organic growth reaching 54%. Tobii also highlighted its new Glasses X product launch and regulatory approval for its DMS and OMS system in the EU as key future growth drivers.
In summary, Tobii AB’s earnings call reflected a positive outlook with substantial improvements in cash flow, cost savings, and EBIT. While challenges remain in specific segments, the company’s strategic initiatives and product innovations position it well for future growth.