Freja eID Group AB (FREJA) AI Stock Analysis

• Market Cap: kr456.98M
• Dividend Yield: N/A
• Average Volume (3M): 48.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: 19.18%
• EPS Growth: 48.44%
• Country: SE
• Employees: 27
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.17
• Shares Outstanding: 28,560,974
• 10 Day Avg. Volume: 28,956
• 30 Day Avg. Volume: 48,411
• PEG Ratio: 0.61
• Price to Book (P/B): 18.15
• Price to Sales (P/S): 7.81
• P/FCF Ratio: 59.72
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: kr15.50 ▲(4.03% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by improving fundamentals—strong revenue growth and a shift to positive operating/free cash flow—offset by continued net losses and weak/volatile margins. Technicals are mostly neutral with only modestly constructive signals, while valuation is penalized due to losses (negative P/E) and no stated dividend support.

Positive Factors

Sustained Revenue Growth

Consistent revenue expansion signals growing adoption of Freja eID's services across customers. Durable top-line momentum supports scale economies, strengthens bargaining leverage with partners, and provides a foundation to invest in product and sales capabilities that can drive margin improvement over the medium term.

Improved Cash Generation

A switch to positive operating and free cash flow materially reduces near-term financing pressure and gives management optionality to reinvest in product, sales, or integrations. Sustained FCF would support self-funded growth and reduce dilution risk from future capital raises over the coming months.

Recurring B2B/B2G Revenue Model

A contract-driven B2B/B2G model creates recurring, sticky revenue and higher switching costs for clients—especially in public-sector identity use cases. This structural demand profile supports predictable unit economics and long-term customer retention, benefiting sustainable revenue visibility.

Negative Factors

Persistent Net Losses

Ongoing net losses indicate the business has not yet reached structural profitability; continued deficits can erode equity and force reliance on external capital. If losses persist, the company may face financing pressure that constrains investments and increases execution risk over the medium term.

Weak and Volatile Margins

Volatile or negative gross and operating margins suggest limited operating leverage and potential misalignment between pricing and direct costs. Without consistent margin improvement, revenue growth may not translate into sustainable profits, leaving margins exposed to pricing pressure or rising operating expenses.

Balance-Sheet Volatility / Past Negative Equity

Historical negative equity and balance-sheet swings point to past capital shortfalls and refinancing dependence. This volatility raises the risk that future shocks or continued losses could strain liquidity, limit strategic flexibility, or necessitate dilutive financing events in the medium term.

Freja eID Group AB Business Overview & Revenue Model

Company Description

Freja eID Group AB (publ), an IT security company, provides security solutions for banking, government, and businesses worldwide. It offers Freja eID, an eco-system for identities; Freja ID to provide secure access to management teams or other key persons; Freja Self-Service Portal, which simplifies the process of user enrolment; Freja Connect, an identity provider that connects internal authentication system to the outside world; Freja Mobile to provide elevated levels of security and user convenience for login and signing; login devices, such as one-button, keyboard, card, USB, and mobile tokens, as well as Freja Mobile, SMS and email, code cards, and Google authenticators; and Pinelope, a software to create personal identification number (PIN) mailers used to distribute passwords or PINs. The company also provides Chiave Key Management Facility, a key management solution to support the common key types used by banks and payment processors; Chiave Registration Authority that generates cryptographic keys and certificates; and Chiave POS, a system for managing personalization of POS terminals. In addition, it offers general purpose hardware security modules (HSM) that enable companies to add hardware security to critical applications, such as public key infrastructures, databases, and Web and application servers; payment HSMs to secure payments and transactions; and transparent and network encryption products. Further, it provides Verisec Platform of Digital Trust, a platform, which provides a range of tools for securing identities and data; and fulfilment and programming, distribution and logistics, ordering and warehousing, printing and packaging, return handling and warranty management, code management, and training services, as well as various courses. The company was formerly known as Verisec AB (publ) and changed its name to Freja eID Group AB (publ) in November 2020. Freja eID Group AB (publ) was founded in 2002 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Freja eID Group AB generates revenue through multiple channels, primarily by charging fees for its digital identity services and electronic signature solutions. The company offers subscription plans for businesses that require enhanced security for their transactions and identity verification processes. Additional revenue is generated from transaction fees associated with the use of their services in online transactions and partnerships with governmental and financial institutions that require secure identification solutions. Strategic partnerships with other tech firms and integration into existing platforms also contribute to revenue growth, as they expand the reach of Freja's services and enhance their value proposition in the market.

Freja eID Group AB Financial Statement Overview

Summary

Revenue growth is strong and 2025 shows positive operating and free cash flow, but profitability remains weak with persistent net losses and negative gross/operating profit. Balance sheet quality is improved versus 2024 with positive equity and moderate leverage, yet historical volatility and ongoing losses keep financial risk elevated.

Income Statement

Top-line momentum is strong, with revenue rising sharply over time and still up in 2025 (annual). Profitability, however, remains weak: net losses persist across all years, and 2025 (annual) shows negative gross profit and negative operating profit, even though EBITDA has turned slightly positive. Overall, growth is encouraging but the business has not yet demonstrated durable, scalable margins.

Balance Sheet

Leverage appears more manageable in 2025 (annual), with debt at a moderate level versus equity and equity back to positive after being negative in 2024 (annual). That said, the history shows meaningful balance-sheet volatility (including negative equity in 2024), and ongoing losses imply continued pressure on equity if profitability does not improve.

Cash Flow

Cash generation has improved materially: 2025 (annual) shows solid positive operating cash flow and positive free cash flow, a notable turnaround from deeply negative levels in prior years. The key weakness is consistency—free cash flow growth is sharply negative in 2025 versus 2024, and prior years show sizable cash burn, suggesting execution risk and potentially uneven working-capital or investment dynamics.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.09M	43.91M	36.29M	29.42M	20.64M
Gross Profit	-14.31M	10.64M	620.00K	36.56M	25.22M
EBITDA	1.29M	-4.35M	-25.52M	-33.74M	-42.68M
Net Income	-15.31M	-23.37M	-31.96M	-38.76M	-52.33M
Balance Sheet
Total Assets	69.42M	60.79M	62.42M	59.85M	93.78M
Cash, Cash Equivalents and Short-Term Investments	14.90M	8.43M	5.44M	6.22M	28.30M
Total Debt	12.44M	33.83M	19.50M	17.18M	13.59M
Total Liabilities	47.42M	63.52M	48.62M	38.50M	34.54M
Stockholders Equity	21.99M	-2.73M	13.80M	21.35M	59.24M
Cash Flow
Free Cash Flow	6.68M	-9.50M	-22.90M	-37.38M	-51.13M
Operating Cash Flow	7.09M	1.95M	-8.38M	-25.41M	-41.67M
Investing Cash Flow	-12.53M	-11.45M	-14.00M	2.15M	-9.70M
Financing Cash Flow	11.81M	12.37M	21.57M	938.00K	56.28M

Freja eID Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FREJA, the sentiment is Positive. The current price of 14.9 is below the 20-day moving average (MA) of 16.09, below the 50-day MA of 15.82, and above the 200-day MA of 14.24, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 52.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:FREJA.

Freja eID Group 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%
ADVE	55 Neutral	kr637.80M	38.49	22.29%	0.48%	27.82%	305.33%
FREJA	50 Neutral	kr456.98M	-25.62	―	―	19.18%	48.44%
CLAV	50 Neutral	kr1.75B	480.10	―	―	20.43%	61.67%
CYB1	40 Underperform	€2.18M	―	―	―	―	―