Recurring License & Subscription Revenue ModelModelon's core revenue derives from subscription and term-license contracts plus maintenance and services. This creates recurring revenue streams, customer lock-in via libraries and support, and predictable renewal/expansion opportunities that support durable cash inflows if adoption stabilizes.

Serving Simulation-intensive, Structural End MarketsThe company targets industries with long product lifecycles and high engineering complexity. Demand for simulation and model-based engineering is structural in these sectors, enabling multi-year licensing, high switching costs, and opportunities to cross-sell domain libraries across diverse, durable end markets.

No Reported Debt On The Balance SheetZero reported debt reduces interest burden and lowers near-term solvency risk, giving management flexibility to prioritize R&D, customer investment or targeted financing. This structural conservatism improves survival odds during prolonged cash burn phases.

Bears Say

Negative Gross Profit Over Multiple YearsSustained negative gross profit indicates the core software/business lacks positive unit economics: cost of delivering product and services exceeds revenue. Without materially improved pricing, margin structure, or product cost reduction, profitability is structurally unattainable at current scale.

Persistent Large Operating Cash Flow DeficitsRepeated negative operating cash flows show the business does not self-fund operations or growth. This forces reliance on external financing or equity issuances, constraining strategic choices, raising dilution risk, and making long-term investment or scaling difficult without a clear pathway to positive cash generation.

Sharply Declining Equity BaseA rapidly shrinking equity base reflects cumulative losses and reduces balance-sheet shock absorptive capacity. Even with no debt, lower equity limits ability to raise debt or invest, increases vulnerability to adverse events, and tightens financial flexibility during a multi-year recovery.

3VM FAQ

What was Modelon AB’s price range in the past 12 months?

Modelon AB lowest stock price was €0.56 and its highest was €1.40 in the past 12 months.

What is Modelon AB’s market cap?

Modelon AB’s market cap is €14.28M.

When is Modelon AB’s upcoming earnings report date?

Modelon AB’s upcoming earnings report date is May 19, 2026 which is in 61 days.

How were Modelon AB’s earnings last quarter?

Modelon AB released its earnings results on Feb 17, 2026. The company reported -€0.026 earnings per share for the quarter, missing the consensus estimate of N/A by -€0.026.

Is Modelon AB overvalued?

According to Wall Street analysts Modelon AB’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Modelon AB pay dividends?

Modelon AB does not currently pay dividends.

What is Modelon AB’s EPS estimate?

Modelon AB’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Modelon AB have?

Modelon AB has 18,224,707 shares outstanding.

What happened to Modelon AB’s price movement after its last earnings report?

Modelon AB reported an EPS of -€0.026 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 0.565%.

Which hedge fund is a major shareholder of Modelon AB?

Currently, no hedge funds are holding shares in DE:3VM

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Modelon AB

Modelon AB (publ) provides systems modeling and simulation software solutions in Sweden and internationally. Its flagship product is Modelon Impact, a cloud-native system simulation software platform with a browser-based interface, and models and components for various applications. The company also offers Modelon Library Suite, a suite of libraries for physical system modeling; and FMI Toolbox for MATLAB/Simulink that supports workflows in control system development and system integration for virtual prototyping. In addition, it provides consulting and training services. The company serves automotive, aerospace, energy and power, HVAC and refrigeration, industrial equipment, and academia and research industries. Modelon AB (publ) was incorporated in 2004 and is headquartered in Lund, Sweden.