4C Group AB (4C) AI Stock Analysis

• Market Cap: kr365.14M
• Dividend Yield: N/A
• Average Volume (3M): 108.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: 4.32%
• EPS Growth: 57.79%
• Country: SE
• Employees: 200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.39
• Shares Outstanding: 38,274,998
• 10 Day Avg. Volume: 95,613
• 30 Day Avg. Volume: 108,676
• PEG Ratio: -0.08
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 1.37
• P/FCF Ratio: -9.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): kr356.62M

• Rating: 42 Neutral
• Price Target: kr10.50 ▼(-13.58% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by weak financial performance—multi-year losses, a steep 2025 revenue decline, and persistently negative operating/free cash flow. Technicals further weigh on the rating as the stock trades below key moving averages with bearish momentum, while valuation offers limited support because the negative P/E reflects ongoing losses and there is no dividend yield data.

Positive Factors

Specialized, resilient business model

4C operates in a specialized, high-barrier niche—intelligence, risk management and resilience for complex environments. This focus creates durable demand from corporate and public clients needing ongoing security and geopolitical services, supporting repeat contracts and long-term client relationships.

Positive EBITDA margin despite net losses

The presence of a positive EBITDA margin indicates operating profitability before non-cash and financing items, implying core service delivery can generate operating cash in better conditions. This suggests room to restore net profitability through cost control and revenue stabilization.

Moderately supported balance sheet

Equity growth and a debt/equity of ~0.56 imply the company still has a capital base and manageable leverage relative to high-risk peers. This provides financial flexibility to invest in service delivery and absorb near-term shocks while pursuing recovery initiatives without immediate solvency pressure.

Negative Factors

Sharp recent revenue decline

A 37% revenue drop in a single year is a structural red flag: it reduces scale economics, pressures fixed-cost absorption, and weakens client pipeline visibility. If sustained, this contraction undermines margins, reduces investment capacity, and makes returning to prior profitability more difficult.

Persistent negative cash generation

Three consecutive years of negative operating and free cash flow indicate the business is not self-funding. Continued cash deficits erode liquidity, constrain reinvestment in sales or product improvements, and increase reliance on external financing, which can dilute equity or raise financing costs over time.

Shift to sustained losses and margin pressure

A multi-year shift from profit to loss and material gross margin compression signal underlying issues in pricing, mix, or cost structure. This reduces return on capital and can make customer retention and competitive investment harder, risking structural competitiveness if not reversed.

4C Group AB Business Overview & Revenue Model

Company Description

4C Group AB (publ) provides software solutions and expert services for organizational readiness, training, and crisis management worldwide. The company offers Exonaut, a software platform that enables effective, secure, and seamless management of incidents, crises, risks, and compliance assurance; supports the sustainment and continuity of operations affected by disruptions and crises; and provides a software solution for military and civilian customers in training management and capability development. It serves defense forces, public organizations, and companies in the corporate sector. The company was founded in 2000 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

4C generates revenue through a diversified model that includes project-based consulting fees, subscription-based software licenses, and service contracts for ongoing support and maintenance. Key revenue streams consist of custom software development projects, analytics services that help businesses leverage their data, and cloud solutions that provide scalable infrastructure for clients. The company also benefits from strategic partnerships with technology providers and industry leaders, allowing it to expand its market reach and enhance its service offerings, which contribute significantly to its overall earnings.

4C Group AB Financial Statement Overview

Summary

Financial performance is pressured: income statement trends show a shift from profits to losses (2023–2025) alongside a sharp 2025 revenue decline (-37.1% YoY) and gross margin compression. Cash flow is a key weakness with negative operating and free cash flow for three consecutive years, indicating the business is not currently self-funding. The balance sheet is only moderately supportive—leverage has increased (debt-to-equity ~0.56 in 2025) and returns have turned negative—limiting the offset to operating deterioration.

Income Statement

Profitability has deteriorated meaningfully versus prior years. After healthy margins in 2020–2022 (including positive net income in 2021–2022), the company shifted to losses in 2023–2025 and reported a sharp 2025 revenue decline (-37.1% year-over-year). Gross margin also compressed dramatically in 2025, and while EBITDA margin remains positive, net margin is still negative—suggesting cost structure/underlying profitability challenges despite some operating add-backs.

Balance Sheet

The balance sheet looks moderately supported by equity, with debt-to-equity rising to ~0.56 in 2025 from lower levels in 2022–2024, signaling increasing leverage. Total assets and equity have grown over time, but returns on equity have turned negative in 2023–2024 (and net losses continued in 2025), which weakens balance-sheet quality despite an overall manageable leverage profile for now.

Cash Flow

Cash generation has weakened substantially. Operating cash flow is negative in 2023–2025 and free cash flow is consistently negative over the same period (including 2025), indicating the business is not self-funding in the current phase. While 2025 free cash flow improved versus 2024 (positive growth rate), it remains materially negative, and cash flow performance is not yet aligned with sustainable profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	352.39M	343.65M	332.10M	331.28M	263.75M
Gross Profit	11.19M	124.47M	123.64M	143.20M	122.58M
EBITDA	54.01M	56.44M	14.38M	48.37M	65.80M
Net Income	-16.75M	-3.47M	-9.34M	26.29M	38.99M
Balance Sheet
Total Assets	517.50M	437.58M	386.44M	391.65M	243.90M
Cash, Cash Equivalents and Short-Term Investments	11.48M	24.17M	62.23M	146.81M	66.03M
Total Debt	150.56M	91.57M	61.59M	70.55M	49.45M
Total Liabilities	248.63M	200.27M	159.94M	159.89M	136.30M
Stockholders Equity	268.86M	237.31M	226.50M	231.76M	107.59M
Cash Flow
Free Cash Flow	-48.42M	-66.83M	-54.82M	-4.00M	55.29M
Operating Cash Flow	-46.98M	-25.70M	-17.75M	24.62M	75.49M
Investing Cash Flow	-42.85M	-41.17M	-37.45M	-28.54M	-20.55M
Financing Cash Flow	79.43M	26.77M	-29.08M	78.92M	-14.76M

4C Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:4C, the sentiment is Negative. The current price of 12.15 is above the 20-day moving average (MA) of 11.29, above the 50-day MA of 11.73, and below the 200-day MA of 14.25, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 28.20 is Positive, neither overbought nor oversold. The STOCH value of 3.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:4C.

4C Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPAY	62 Neutral	kr137.02M	33.18	―	―	12.09%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ADVE	55 Neutral	kr697.62M	42.10	22.29%	0.48%	27.82%	305.33%
CLAV	50 Neutral	kr1.75B	495.41	―	―	20.43%	61.67%
FREJA	50 Neutral	kr464.12M	-25.30	―	―	19.18%	48.44%
4C	42 Neutral	kr365.14M	-21.17	―	―	4.32%	57.79%
CYB1	40 Underperform	€2.42M	―	―	―	―	―