Irisity AB (IRIS) AI Stock Analysis

• Market Cap: kr44.95M
• Dividend Yield: N/A
• Average Volume (3M): 554.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -41.32%
• EPS Growth: 34.95%
• Country: SE
• Employees: 76
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.18
• Shares Outstanding: 384,201,930
• 10 Day Avg. Volume: 311,167
• 30 Day Avg. Volume: 554,400
• PEG Ratio: 0.08
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -1.36
• 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: 48 Neutral
• Price Target: kr0.13 ▼(-2.31% Downside)

The score is held down primarily by weak financial performance—declining revenue, very large losses, and sustained cash burn—only partially cushioned by low balance-sheet leverage. Technical momentum is a relative positive, but valuation remains challenged due to negative earnings and no indicated dividend yield.

Positive Factors

Recurring subscription model

A subscription licensing model creates recurring revenue and predictable cash flows over time. Combined with indirect channel sales via integrators and partners, this supports scalable distribution, higher customer lifetime value and the potential to grow ARR without linear increases in sales headcount.

Low financial leverage

Very low debt levels reduce fixed financing obligations and give management flexibility to fund operations, endure cash burn, or pursue strategic investments. This balance sheet cushion lengthens runway and lowers bankruptcy risk versus highly levered peers during a multi-quarter recovery.

Strong gross profit

High gross profit relative to revenue indicates software economics and scalability: incremental sales can drop to the bottom line once operating cost growth is controlled. If sales stabilize, margins can expand materially, enabling a clearer path to operating leverage and eventual profitability.

Negative Factors

Declining revenue trend

A multi-period revenue decline undermines operating leverage and complicates achieving profitability. For a software vendor, shrinking top-line reduces ability to spread fixed R&D and sales costs, lengthens payback on customer acquisition, and signals potential product-market fit or distribution execution issues.

Sustained negative cash flow

Chronic negative operating and free cash flow forces reliance on external financing or equity dilution to fund operations. Over months this erodes shareholder equity, limits reinvestment capacity, and constrains strategic options, particularly if revenue recovery is slow or capital markets tighten.

Large losses eroding equity

Losses several times revenue and very negative ROE indicate capital erosion and weak profitability dynamics. Persistent heavy losses reduce book equity, heighten dilution risk, and weaken investor confidence, making it harder to fund growth initiatives or sustain competitive product investment over the medium term.

Irisity AB Business Overview & Revenue Model

Company Description

Irisity AB (publ) provides AI-powered video analytics solutions in Sweden and internationally. It offers IRIS, a Security as a Service for AI video analytics. The company's software upgrades security cameras to intelligent detection devices and safeguards personal privacy. It provides solutions in the areas of alarm central, critical infrastructure, rail and transportation, education and public, construction, safe and smart city, health and elder care, logistics and ports, industrial, and agriculture. The company was formerly known as Mindmancer AB (publ) and changed its name to Irisity AB (publ) in August 2017. Irisity AB (publ) was incorporated in 2006 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Irisity AB generates revenue through a subscription-based model for its software services, which allows customers to access and utilize its AI video analytics solutions. This recurring revenue stream is a key component of its business model. Additionally, the company earns money from the sale of licenses for its software products and from hardware sales, such as cameras and other security equipment that are integrated with its software. Significant partnerships with security service providers and integrators enhance its market reach, while ongoing technological advancements and a growing demand for smart surveillance solutions contribute to its revenue growth.

Irisity AB Financial Statement Overview

Summary

Income statement and cash flow are very weak: TTM revenue fell (-5.2%), losses are extremely large relative to revenue, and operating/free cash flow are negative. The balance sheet is a partial offset with low leverage (debt-to-equity ~0.12), but equity is being eroded by sharply negative returns (ROE ~-45%).

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-5.2%) and profitability remains deeply negative, with net losses of roughly 3x revenue and negative operating profitability. While reported gross profit is strong relative to revenue, operating costs continue to overwhelm the top line, and losses have generally widened versus earlier years (2023–2024 to TTM), signaling weak operating leverage and an uncertain path to breakeven.

Balance Sheet

Leverage is low (TTM debt-to-equity ~0.12), and equity remains sizable relative to the balance sheet, which provides some financial flexibility. However, returns on equity are sharply negative (TTM ~-45%), and equity has trended down from prior annual periods—consistent with ongoing losses eroding the capital base over time.

Cash Flow

Cash generation is weak: operating cash flow is negative in TTM and across all annual periods shown, and free cash flow is also negative (TTM and 2024), indicating the business is consuming cash rather than funding itself. There is some improvement versus 2024 in TTM free cash burn, but the overall pattern remains sustained cash outflows and reliance on external funding over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	74.15M	103.94M	117.60M	87.68M	77.29M	36.77M
Gross Profit	76.07M	106.59M	129.13M	94.79M	70.97M	32.00M
EBITDA	-101.50M	-92.48M	-89.84M	-94.64M	-10.94M	-11.49M
Net Income	-221.60M	-216.07M	-132.53M	-136.93M	-23.93M	-19.61M
Balance Sheet
Total Assets	528.78M	738.23M	760.19M	863.39M	898.89M	137.87M
Cash, Cash Equivalents and Short-Term Investments	1.59M	7.55M	13.64M	17.58M	71.34M	65.15M
Total Debt	46.95M	12.65M	23.28M	15.00M	1.17M	2.34M
Total Liabilities	131.05M	117.20M	128.54M	124.31M	136.85M	20.11M
Stockholders Equity	397.73M	621.02M	631.65M	739.07M	762.04M	117.76M
Cash Flow
Free Cash Flow	-29.77M	-59.87M	-69.65M	-68.28M	-43.25M	-21.18M
Operating Cash Flow	-55.61M	-59.87M	-42.71M	-41.96M	-27.44M	-11.14M
Investing Cash Flow	-23.14M	-33.96M	-26.94M	-26.33M	-90.16M	-10.04M
Financing Cash Flow	77.46M	87.75M	63.16M	13.77M	123.79M	46.53M

Irisity AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:IRIS, the sentiment is Negative. The current price of 0.13 is above the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:IRIS.

Irisity AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SECU.B	69 Neutral	kr88.72B	17.34	13.13%	3.10%	-0.74%	6.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LEVEL	56 Neutral	kr158.48M	-54.24	-1.58%	―	2.70%	85.94%
CARE	56 Neutral	kr471.93M	14.90	―	―	1.30%	-2.54%
IRIS	48 Neutral	kr44.95M	-0.08	-44.40%	―	-41.32%	34.95%
PREC	47 Neutral	kr153.98M	-7.92	-10.30%	―	-3.27%	-23.22%
TSEC	41 Neutral	kr111.13M	-2.02	―	―	9.39%	-378.80%