Freemelt Holding AB (FREEM) AI Stock Analysis

• Market Cap: kr305.78M
• Dividend Yield: N/A
• Average Volume (3M): 332.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 141.44%
• EPS Growth: 43.04%
• Country: SE
• Employees: 39
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.14
• Shares Outstanding: 188,755,550
• 10 Day Avg. Volume: 415,472
• 30 Day Avg. Volume: 332,259
• PEG Ratio: 0.05
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 4.52
• P/FCF Ratio: -6.28
• 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): -0.11
• Revenue Forecast (FY): kr88.10M

• Rating: 47 Neutral
• Price Target: kr1.50 ▲(4.90% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held back primarily by persistent losses and significant cash burn, despite a debt-free balance sheet and solid equity cushion. Technical signals remain bearish with the stock below key moving averages and negative MACD, while valuation is difficult to support given the negative P/E and no dividend yield.

Positive Factors

Debt-free balance sheet

A debt-free capital structure materially reduces solvency risk and interest burden, giving management flexibility to fund operations from equity or cash reserves. The sizable equity and asset base (~189M equity, ~206M assets) provide a multi-quarter cushion while scaling revenue or executing strategic initiatives.

Recurring installed-base revenue

Service, maintenance, spare parts and training tied to the installed base create recurring and semi-recurring revenue streams that smooth capital-equipment cyclicality. Over time this improves revenue visibility, increases customer lifetime value and supports margin recovery once installed base grows materially.

Specialized EBM market focus

Focusing on EBM for high-performance metal components addresses niche, high-value end markets (medical implants, industrial parts) with higher technical barriers and certification needs. Structural demand for advanced metallurgy and precision parts supports durable pricing power and long-term customer stickiness if scale and quality credentials improve.

Negative Factors

Persistent cash burn

Sustained negative operating and free cash flow implies ongoing funding needs and constrains strategic optionality. Continued cash burn increases reliance on equity raises or external financing, which risks dilution and can limit investments in product development, service expansion, or sales capacity needed to reach scale and profitability.

Deep unprofitability

A sharply negative gross profit indicates current unit economics are not covering direct production costs. This undermines margin sustainability and means scaling revenue could amplify losses until product cost structure or pricing improves materially, delaying the path to sustainable operating profitability and positive cash flow.

Equity erosion & negative ROE

Declining equity and consistently negative ROE show the company’s capital base has not produced returns and has been eroded by losses or dilution. Restoring investor returns will require durable margin improvements or profitable growth; otherwise further capital raises could dilute existing holders and signal persistent execution risk.

Freemelt Holding AB Business Overview & Revenue Model

Company Description

Freemelt Holding AB (publ), through its subsidiary, Freemelt AB, engages in the metal 3D-printing business in Europe, Asia, and North America. The company produces, markets, sells, and services Freemelt ONE, an electron beam-based 3D printer for research and development. It serves universities, research institutes, and research and development departments in large enterprises. The company was incorporated in 2017 and is headquartered in Mölndal, Sweden.

How the Company Makes Money

Freemelt makes money primarily by selling its EBM additive manufacturing machines/systems to customers (capital equipment revenue). In addition, it generates revenue from recurring and semi-recurring sources tied to the installed base, including service and support (e.g., maintenance, technical support, and potentially service agreements) and sales of related accessories and spare parts required to operate and maintain the equipment. Depending on customer needs, revenue can also include installation, training, and application-related support delivered alongside system deliveries (often recognized as part of, or in addition to, the system sale). Specific material revenue (e.g., metal powder), software licensing, or named strategic partnerships contributing materially to earnings are null.

Freemelt Holding AB Financial Statement Overview

Summary

Revenue rebounded in 2025, but the company remains deeply unprofitable with large operating/net losses and a sharply negative gross profit. Cash flow is a major weakness with persistent operating cash burn and negative free cash flow, while the debt-free balance sheet and sizable equity base provide a meaningful solvency cushion.

Income Statement

Revenue rebounded strongly in 2025 (annual revenue up ~16% to ~54.5M), but the business remains deeply unprofitable with large operating and net losses across all reported years. Profitability also appears volatile: 2025 shows a sharply negative gross profit, and prior years show negative operating and net margins, indicating the cost structure is still far from scale and earnings visibility remains limited.

Balance Sheet

The balance sheet is a clear strength: the company reports zero debt across the period, which materially reduces financial risk. Equity remains sizable (~189.3M in 2025) and assets (~206.2M) provide a solid capital base, although equity has trended down from earlier years, reflecting ongoing losses and dilution/retained deficit pressure. Returns on equity are consistently negative, underscoring that the capital base is not yet producing profits.

Cash Flow

Cash generation remains weak with persistently negative operating cash flow and negative free cash flow (2025 operating cash flow about -34.7M; free cash flow about -39.2M). Free cash flow trends have been choppy and deteriorated in 2025 versus 2024 (growth ~-36.7%), suggesting continued cash burn and likely ongoing funding needs despite the debt-free structure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	54.55M	20.02M	22.31M	37.32M	302.00K
Gross Profit	-93.54M	41.61M	35.04M	37.98M	7.57M
EBITDA	-32.47M	-35.57M	-30.15M	-38.07M	-11.71M
Net Income	-91.19M	-89.95M	-82.86M	-67.60M	-23.97M
Balance Sheet
Total Assets	206.22M	223.31M	254.69M	268.62M	335.38M
Cash, Cash Equivalents and Short-Term Investments	32.10M	16.63M	34.07M	10.92M	56.90M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	16.88M	21.59M	15.17M	11.07M	10.31M
Stockholders Equity	189.35M	201.72M	239.52M	257.56M	325.07M
Cash Flow
Free Cash Flow	-39.20M	-45.41M	-41.69M	-46.07M	-29.20M
Operating Cash Flow	-34.70M	-37.78M	-16.55M	-29.44M	-18.03M
Investing Cash Flow	-23.74M	-36.74M	-25.13M	-16.63M	-8.15M
Financing Cash Flow	73.98M	56.98M	64.74M	20.00K	83.03M

Freemelt Holding AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FREEM, the sentiment is Neutral. The current price of 1.43 is above the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.53, and below the 200-day MA of 1.95, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 75.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:FREEM.

Freemelt Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KJELL	57 Neutral	kr896.16M	-65.29	-42.09%	―	-4.54%	-1024.16%
ADVE	55 Neutral	kr658.91M	52.29	22.29%	0.48%	27.82%	305.33%
FREEM	47 Neutral	kr305.78M	-2.70	-39.81%	―	141.44%	43.04%
ALBERT	46 Neutral	kr110.57M	-2.31	-76.48%	―	-8.60%	24.21%
BIM	45 Neutral	kr614.30M	-11.79	-36.30%	―	2.08%	-168.70%