Loyal Solutions A/S (LOYAL) AI Stock Analysis

• Market Cap: kr37.62M
• Dividend Yield: N/A
• Average Volume (3M): 8.02K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: -4.44%
• EPS Growth: -14.29%
• Country: SE
• Employees: 20
• Sector: Services
• Sector Strength: N/A
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 9,499,998
• 10 Day Avg. Volume: 7,818
• 30 Day Avg. Volume: 8,020
• PEG Ratio: -0.14
• Price to Book (P/B): -0.79
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -5.44
• 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: 52 Neutral
• Price Target: kr5.00 ▲(53.37% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (steep revenue decline, ongoing losses, and negative equity/solvency risk). Technicals are a key offset with strong trend and positive momentum indicators. Valuation remains a secondary drag because losses make the negative P/E less supportive and no dividend yield is available.

Positive Factors

Improving free cash flow

Sustained FCF growth (+26.53%) indicates improving cash generation ability despite operating losses. Over 2-6 months this can extend runway, reduce near-term financing needs, and give management flexibility to invest in product or stabilize operations while revenue recovery is pursued.

Gross profit margin

A 26.66% gross margin shows the company can cover direct costs and has product-level economics to build on. If revenue stabilizes, this margin affords operating leverage and the potential to move toward sustainable profitability by controlling SG&A and scaling existing offerings.

Lean operating structure

A very small headcount suggests low fixed overhead and a lean cost structure. This enhances agility, lowers breakeven revenue, and supports faster reallocation of resources to high-return initiatives, improving the company's ability to endure prolonged recovery periods.

Negative Factors

Negative equity / solvency risk

Negative shareholders' equity and a -0.95 debt/equity ratio indicate material balance sheet stress. This raises refinancing and solvency risk, limits access to non-dilutive capital, and can force distress-driven decisions that impair strategic flexibility over the medium term.

Steep revenue decline

A recorded revenue decline of -105.1% undermines scale economics and recurring revenue stability. Such a sharp drop damages customer momentum, reduces operating leverage potential, and creates a high bar for management to restore sustainable growth and margins in the coming quarters.

Negative operating cash flow

Persistent negative operating cash flow and an OCF-to-net-income ratio of -0.14 show the business struggles to convert earnings into cash. This increases reliance on external funding, elevates liquidity risk, and challenges the company's self-sufficiency if revenues don't rebound.

Loyal Solutions A/S Business Overview & Revenue Model

Company Description

Loyal Solutions A/S, a SaaS company, develops, implements, and operates loyalty solutions. It serves the financial, airlines, malls, hospitality, telecom, media, technology, and security industries. The company was incorporated in 2005 and is headquartered in Copenhagen, Denmark.

How the Company Makes Money

Loyal Solutions generates revenue through a subscription-based model, charging businesses for access to their loyalty program management software and analytics tools. Key revenue streams include monthly or annual subscription fees from clients, transaction fees for each customer engagement within loyalty programs, and consulting services for program implementation and optimization. Additionally, the company may benefit from strategic partnerships with marketing agencies and retail businesses, providing them with tailored solutions that drive customer retention and increase sales, thus contributing to its overall earnings.

Loyal Solutions A/S Financial Statement Overview

Summary

Weak fundamentals: revenue is sharply declining (-105.1% growth) and profitability is negative (net margin -25.78%, EBIT margin -17.35%). The balance sheet is strained with negative equity (solvency risk), partially offset by improving free cash flow growth (+26.53%) despite negative operating cash flow.

Income Statement

Loyal Solutions A/S has shown a declining revenue trend with a negative revenue growth rate of -105.1% in the latest period, indicating significant challenges in maintaining sales. The company also exhibits negative profit margins, with a net profit margin of -25.78% and an EBIT margin of -17.35%, reflecting ongoing operational inefficiencies and high costs relative to revenue. Despite these challenges, the gross profit margin of 26.66% suggests some ability to cover direct costs, but overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, leading to a concerning debt-to-equity ratio of -0.95. This indicates a high level of financial leverage and potential solvency issues. The return on equity is positive at 35.41%, but this is skewed by the negative equity base. The equity ratio is not directly calculable due to negative equity, highlighting financial instability and risk.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 26.53%, indicating some improvement in cash generation. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is -0.14, suggesting challenges in converting earnings into cash. The free cash flow to net income ratio of 1.42 indicates that the company is generating more cash than its reported losses, which is a positive sign amidst overall cash flow difficulties.

Breakdown	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	39.12M	40.09M	26.89M	18.27M	14.59M
Gross Profit	10.43M	12.67M	3.43M	432.46K	2.48M
EBITDA	-6.09M	-5.33M	-14.22M	-14.10M	-5.95M
Net Income	-10.09M	-8.68M	-17.32M	-18.48M	-9.78M
Balance Sheet
Total Assets	18.66M	18.97M	22.21M	22.05M	41.19M
Cash, Cash Equivalents and Short-Term Investments	4.03M	1.84M	7.29M	6.32M	26.60M
Total Debt	27.07M	18.61M	18.19M	8.33M	9.53M
Total Liabilities	47.14M	37.31M	31.89M	14.40M	15.73M
Stockholders Equity	-28.49M	-18.35M	-9.68M	7.65M	25.46M
Cash Flow
Free Cash Flow	-4.14M	-4.47M	-8.40M	-17.70M	-9.34M
Operating Cash Flow	-2.92M	-3.17M	-7.44M	-17.24M	-7.42M
Investing Cash Flow	-1.23M	-1.31M	-852.43K	-1.17M	-2.10M
Financing Cash Flow	6.34M	-971.85K	9.27M	-1.87M	31.68M

Loyal Solutions A/S Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:LOYAL, the sentiment is Positive. The current price of 3.26 is below the 20-day moving average (MA) of 3.95, below the 50-day MA of 3.62, and above the 200-day MA of 3.06, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 6.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:LOYAL.

Loyal Solutions A/S Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LOYAL	52 Neutral	kr37.62M	-6.33	―	―	-4.44%	-14.29%
FLOWS	52 Neutral	kr57.60M	26.39	―	―	―	―
ZAPLOX	47 Neutral	kr34.36M	-3.26	-205.97%	―	9.85%	50.72%
DIVIO.B	43 Neutral	kr37.31M	-3.72	―	―	―	―
SPOTR	39 Underperform	kr10.86M	-0.73	-177.14%	―	48.57%	-22.35%