INVISIO AB (IVSO) AI Stock Analysis

• Market Cap: kr14.27B
• Dividend Yield: 0.87%
• Average Volume (3M): 106.13K
• Price to Earnings (P/E): 65.8
• Beta (1Y): 0.93
• Revenue Growth: 5.69%
• EPS Growth: 4.82%
• Country: SE
• Employees: 294
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.60
• Shares Outstanding: 46,179,634
• 10 Day Avg. Volume: 136,424
• 30 Day Avg. Volume: 106,133
• PEG Ratio: -1.87
• Price to Book (P/B): 10.35
• Price to Sales (P/S): 6.99
• P/FCF Ratio: 65.83
• 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): 8.64
• Revenue Forecast (FY): kr2.23B

• Rating: 75 Outperform
• Price Target: kr367.00 ▲(33.70% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong financial quality (high margins and low leverage) despite a notable 2025 earnings slowdown and uneven cash conversion. Technicals are supportive with the stock trading above major moving averages and positive momentum. The main drag is expensive valuation (high P/E and low dividend yield).

Positive Factors

High gross margins

Sustained gross margins near 56–60% indicate durable product-level profitability driven by specialized tactical headsets and barriers to commoditization. High margins support reinvestment in R&D, protect operating profit through cycles, and underpin long-term cash generation even if sales fluctuate.

Conservative balance sheet

Very low leverage and a growing equity base give the company financial flexibility to fund product development, weather procurement timing delays, and pursue selective M&A or contracts without raising expensive debt. This resilience reduces refinancing and solvency risk over the next several quarters.

Sticky B2G/B2B recurring sales

A business model reliant on government and institutional standardization creates durable, repeatable revenue streams: once integrated, customers buy spares, expand deployments and accessories. This customer stickiness supports multi-year revenue visibility and aftermarket margin capture.

Negative Factors

2025 revenue and earnings slowdown

A material step-down in 2025 revenue and operating profit signals loss of momentum and potential weakening in order flow or execution. If the trend persists, it can compress operating leverage, reduce cash available for investment, and pressure medium-term growth expectations.

Volatile cash conversion

Inconsistent translation of earnings into free cash makes investment planning and distributions less predictable. Volatile cash conversion increases financing uncertainty around working capital swings and contract timing, raising execution risk for product rollouts and backlog monetization.

Dependence on government procurement

Heavy reliance on B2G procurement concentrates demand and exposes revenue to budget cycles, long tender processes, and political risk. Such procurement-driven lumpiness can cause multi-quarter variability in orders and delayed revenue recognition, limiting predictability of growth.

INVISIO AB Business Overview & Revenue Model

Company Description

Invisio AB (publ) develops and sells personal communication and hearing protection systems for professionals in the defense and military, law enforcement, and security sectors in Sweden, Europe, North America, and internationally. The company offers headsets, control units, intercom systems, accessories and remote push-to-talk units, and cables. Its products are used in high noise and hearing protection applications. The company sells its products under the INVISIO, and Racal Acoustics brands. Invisio AB (publ) markets and sells its products through partners and resellers. The company was formerly known as INVISIO Communications AB (publ) and changed its name to Invisio AB (publ) in June 2010. Invisio AB (publ) was founded in 1999 and is based in Malmö, Sweden.

How the Company Makes Money

INVISIO AB generates revenue primarily through the sale of its communication and hearing protection products, which are sold to government agencies, military organizations, and private security firms. The company operates a direct sales model, supported by a network of distributors and partners that expand its reach in various markets. Key revenue streams include product sales, maintenance services, and upgrades for existing systems. INVISIO also benefits from strategic partnerships with defense contractors and technology companies, which can enhance its product offerings and open new market opportunities. The company's focus on innovation and adaptation to changing customer needs is a significant factor contributing to its earnings.

INVISIO AB Financial Statement Overview

Summary

Strong overall financial quality: multi-year revenue expansion, consistently high gross margins (~56–60%), and a very conservative balance sheet with low leverage and a growing equity base. Offsetting this, 2025 shows a clear slowdown versus 2024 with lower revenue and materially lower EBIT/net income, and cash conversion has been volatile despite improved 2025 operating and free cash flow.

Income Statement

Revenue expanded strongly over the past several years (2022–2025), and profitability remains healthy with consistently high gross margins (~56–60%). However, 2025 shows a clear step-down versus 2024 (lower revenue and materially lower EBIT and net income), indicating some near-term pressure on operating leverage and earnings momentum despite still-solid margins.

Balance Sheet

The balance sheet looks very conservative, with low leverage throughout the period (debt-to-equity mostly ~0.04–0.18 and ~0.06 in 2025) and a growing equity base into 2025. Returns on equity are strong in recent years (peaking in 2024 and still solid in 2025), though the 2025 decline vs. 2024 suggests profitability normalized somewhat even as the capital base increased.

Cash Flow

Cash generation is generally positive and improved in 2025 with higher operating cash flow and higher free cash flow, and 2025 free cash flow grew year over year. The main weakness is volatility in cash conversion: operating cash flow relative to net income was weak in 2024 but stronger in 2025, while 2025 free cash flow covered a smaller share of net income than in 2023–2024, implying less consistent translation of earnings into free cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.74B	1.81B	1.24B	775.50M	593.00M
Gross Profit	1.01B	1.01B	747.30M	449.80M	340.40M
EBITDA	377.90M	463.40M	285.60M	96.10M	52.10M
Net Income	218.10M	306.40M	178.40M	44.50M	14.50M
Balance Sheet
Total Assets	1.61B	1.42B	1.05B	799.90M	690.00M
Cash, Cash Equivalents and Short-Term Investments	400.30M	242.40M	224.90M	127.10M	134.80M
Total Debt	74.10M	36.90M	37.80M	89.80M	119.30M
Total Liabilities	432.90M	395.00M	332.60M	290.00M	272.50M
Stockholders Equity	1.17B	1.03B	720.40M	509.90M	417.50M
Cash Flow
Free Cash Flow	184.50M	145.50M	151.30M	8.20M	72.40M
Operating Cash Flow	330.90M	157.00M	204.70M	41.70M	91.00M
Investing Cash Flow	-148.90M	-77.90M	-55.00M	-33.50M	-191.90M
Financing Cash Flow	-8.60M	-70.70M	-48.50M	-25.10M	73.00M

INVISIO AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 274.50
• 50DMA: Positive
• 100DMA: Positive
• 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:IVSO, the sentiment is Neutral. The current price of 274.5 is below the 20-day moving average (MA) of 295.45, below the 50-day MA of 285.26, and below the 200-day MA of 310.45, indicating a neutral trend. The MACD of 9.58 indicates Negative momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 36.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:IVSO.

INVISIO AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVSO	75 Outperform	kr14.27B	65.85	21.88%	0.87%	5.69%	4.82%
HMS	67 Neutral	kr20.54B	47.23	12.77%	―	13.97%	20.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EPEN	60 Neutral	kr3.20B	21.14	9.68%	1.11%	-1.85%	-16.44%
KEBNI.B	50 Neutral	kr414.26M	-2,162.86	8.68%	―	9.30%	―
MAVEN	44 Neutral	kr213.18M	-14.40	-5.81%	―	-9.79%	-144.24%
GAPW.B	43 Neutral	kr438.23M	-6.59	-52.89%	―	53.78%	19.38%

INVISIO AB Corporate Events

INVISIO Closes Record Quarter on Strength of Major Defense Contracts

INVISIO AB strengthened its position in the defense communications market in 2025, securing a five-year framework agreement with the Dutch Ministry of Defense worth up to SEK 365 million and major orders from an existing European customer and the Irish Defense Forces for its Intercom and Personal Communication systems. The company also upgraded to Nasdaq Stockholm’s Large Cap segment and reorganised its executive management, adding a Strategy & New Growth Initiatives function to sharpen its long-term growth focus.

The fourth quarter of 2025 was the company’s strongest to date, with revenue rising 15 percent year-on-year to SEK 684 million and order intake climbing 20 percent to SEK 660 million, while maintaining a robust operating margin of 32.8 percent. Full-year figures showed modest revenue growth and a lower operating margin compared with 2024, but strong cash flow and a growing order book underline solid demand for INVISIO’s system-based solutions as defense customers increasingly favor proven integrated platforms over standalone products.

The most recent analyst rating on (SE:IVSO) stock is a Hold with a SEK308.00 price target. To see the full list of analyst forecasts on INVISIO AB stock, see the SE:IVSO Stock Forecast page.

INVISIO Schedules February 12 Conference Call to Present Year-End Report

INVISIO AB has invited media, investors, and analysts to a conference call on February 12, 2026, at 15:00 CET, where CEO Lars Højgård Hansen will present the company’s year-end report, which will be published one hour earlier. The English-language call will include a presentation followed by a Q&A session, with registration required for participants who wish to ask questions, and both an audiocast and a recorded version of the call and presentation will be made available online, underscoring the company’s emphasis on transparency and engagement with the financial community.

The most recent analyst rating on (SE:IVSO) stock is a Hold with a SEK308.00 price target. To see the full list of analyst forecasts on INVISIO AB stock, see the SE:IVSO Stock Forecast page.

INVISIO Joins Nasdaq Stockholm’s Large Cap List Amid Rapid Growth

INVISIO AB will be upgraded to Nasdaq Stockholm’s Large Cap segment starting January 2, 2026, reflecting the company’s strong market performance with a market capitalization exceeding EUR 1 billion. The move underscores INVISIO’s rapid growth, including a 45% average revenue growth rate from 2022 to 2024 and stable profitability, highlighting its strengthened industry positioning and commitment to sustained growth in the defense and public safety sectors.

The most recent analyst rating on (SE:IVSO) stock is a Hold with a SEK255.00 price target. To see the full list of analyst forecasts on INVISIO AB stock, see the SE:IVSO Stock Forecast page.

INVISIO Restructures Management to Drive Growth and Strategic Development

INVISIO AB has announced a restructuring of its group management to bolster strategic development and growth, effective January 1, 2026. Joakim Birgersson will assume the new role of Senior Vice President Strategy & New Growth Initiatives, while Roger Kristiansson Skaaby and Mathias Rosvall will join the management team in key operational and sales roles. These changes are aimed at enhancing INVISIO’s focus on revenue growth and positioning the company to capitalize on market opportunities. The departure of Carsten Michael Aagesen, a key figure in the company’s sales success, marks a significant transition, with the company expressing gratitude for his contributions.

The most recent analyst rating on (SE:IVSO) stock is a Hold with a SEK255.00 price target. To see the full list of analyst forecasts on INVISIO AB stock, see the SE:IVSO Stock Forecast page.