Low Financial Leverage / No DebtA debt-free balance sheet reduces fixed financing costs and interest-risk over the medium term, preserving operating flexibility during continued cash burn. This structural advantage lengthens runway and lowers insolvency risk relative to peers with high leverage, aiding strategic optionality.

Recurring Subscription And Services RevenueA business model centered on subscriptions, maintenance and complementary services creates recurring revenue streams and visibility into renewals and expansions. That durability supports long-term customer relationships, predictable cash inflows, and opportunities for account expansion and margin improvement if retention improves.

Specialized Product-market Fit Across Engineering IndustriesServing simulation-intensive sectors gives durable end-market demand driven by product development cycles in automotive, aerospace and energy. Cross-industry applicability and deep engineering use-cases support sustained addressable market and long sales cycles that can underpin stable, high-value customer relationships over months to years.

Bears Say

Persistent Negative Operating Cash FlowSustained operating cash outflows indicate the core business is not self-funding, forcing reliance on external financing or equity issuances. Over a multi-month horizon this constrains investment in R&D, sales scale-up, and customer success, and raises execution risk if funding access tightens.

Negative Gross Profit Across Multiple YearsRepeated negative gross profit signals weak unit economics or cost structure issues that are structural, not just one-off. Without margin improvement through pricing changes, product mix shifts, or cost reductions, scaling revenue will likely worsen losses and undermine path to sustainable profitability.

Shrinking Equity Base Reduces Financial FlexibilityA materially reduced equity base limits the company’s capacity to absorb continued losses or fund strategic initiatives without dilutive financing. Even with no debt, the smaller capital buffer heightens vulnerability to revenue shocks and narrows leeway for multi-quarter investments needed to fix underlying profitability issues.

MODEL FAQ

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

Modelon AB lowest stock price was kr6.50 and its highest was kr19.00 in the past 12 months.

What is Modelon AB’s market cap?

Modelon AB’s market cap is kr145.80M.

When is Modelon AB’s upcoming earnings report date?

Modelon AB’s upcoming earnings report date is May 19, 2026 which is in 63 days.

How were Modelon AB’s earnings last quarter?

Modelon AB released its earnings results on Feb 17, 2026. The company reported -kr0.285 earnings per share for the quarter, missing the consensus estimate of N/A by -kr0.285.

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 -kr0.285 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -17%.

Which hedge fund is a major shareholder of Modelon AB?

Currently, no hedge funds are holding shares in SE:MODEL

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.