Profoto Holding AB (PRFO) AI Stock Analysis

• Market Cap: kr372.00M
• Dividend Yield: N/A
• Average Volume (3M): 21.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: -11.02%
• EPS Growth: -90.00%
• Country: SE
• Employees: 148
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.15
• Shares Outstanding: 40,000,000
• 10 Day Avg. Volume: 39,965
• 30 Day Avg. Volume: 21,334
• PEG Ratio: 0.16
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 8.27
• 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): 1.93
• Revenue Forecast (FY): kr651.80M

• Rating: 51 Neutral
• Price Target: kr10.50 ▼(-1.87% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back mainly by the 2025 swing to losses alongside ongoing revenue contraction and rising leverage. Technicals also remain weak with price below key moving averages and negative MACD. Offsetting factors include strong gross margin and improved 2025 operating/free cash flow, but valuation is constrained by negative earnings and no provided dividend yield.

Positive Factors

High gross margin

A ~78% gross margin indicates durable product-level profitability from premium hardware and accessories. High margins provide pricing flexibility, fund R&D and service investments, and cushion operating profits against revenue volatility, supporting long-term unit economics.

Improving cash generation

Operating cash flow rising to 151M and positive free cash flow in 2025 shows the business can convert sales to cash despite accounting losses. Strong cash generation supports capex, inventory and product cycles, reducing reliance on external financing over the medium term.

Installed base & accessory attach

A product ecosystem where an installed base buys repeat accessories creates recurring attach revenue and higher customer lifetime value. This drives steady aftermarket sales, supports margins, and strengthens competitive positioning versus one-off hardware sellers.

Negative Factors

Revenue contraction

A ~16% revenue drop in 2025 and a multi-year decline reduce scale benefits and hurt operating leverage. Sustained top-line shrinkage can force price or cost trade-offs, slow new product investment, and weaken distribution relationships over a medium-term horizon.

Earnings instability

The swing to a net loss and slightly negative EBIT signals volatile profitability after prior strong years. Earnings instability complicates planning for R&D, marketing and capital allocation, and may pressure management to prioritize short-term cash over strategic investments.

Rising leverage

Debt-to-equity rising materially increases fixed obligations and reduces financial flexibility. With earnings volatile, higher leverage raises refinancing and covenant risk, limiting ability to pursue acquisitions or sustain higher upfront investment in product development.

Profoto Holding AB Business Overview & Revenue Model

Company Description

Profoto Holding AB (publ) provides lighting products for professional photographers in Sweden and internationally. The company offers lighting equipment for photography, including on and off camera flashes, monolights, studiopacks, and for smart phones; and light modifiers, which include softboxes, umbrellas, beauty dishes, reflectors, grids, gels, barndoors, collapsible reflectors, snoots, adapters, special effect tools, and accessories for light shaping tools. In addition, the company provides air remotes; accessories, which include bags and cases, batteries and chargers, cables, consumables, and stands; and smartphone photography products, including smartphone lights and light shaping tools. It offers its products through dealers and rental companies, as well as online. Profoto Holding AB (publ) was founded in 1968 and is headquartered in Sundbyberg, Sweden

How the Company Makes Money

Profoto generates revenue primarily through the sale of its professional lighting equipment, including flash units, continuous lights, light shaping tools, and various accessories. The company's revenue model is based on direct sales to professional photographers and videographers, as well as through partnerships with distributors and retailers worldwide. Key revenue streams include product sales, which are bolstered by a strong brand reputation for quality and innovation. Additionally, Profoto may engage in strategic partnerships with photography schools, studios, and industry events, which can contribute to brand visibility and sales. The company also invests in research and development to continuously enhance its product offerings, thereby attracting new customers and retaining existing ones.

Profoto Holding AB Financial Statement Overview

Summary

Financials are mixed: 2025 saw a sharp profitability deterioration (revenue down ~16% vs 2024 and a swing to a net loss with slightly negative EBIT), which outweighs still-strong gross margin (~78%). Balance sheet risk has risen with higher leverage (debt-to-equity ~0.72 vs ~0.31 in 2022–2023) and lower equity, while cash flow is a relative support (operating cash flow up to 151M and free cash flow back to +51M).

Income Statement

Profitability deteriorated sharply in 2025: revenue fell to 617M (down ~16% vs 2024), and the company swung to a net loss (-23M) with EBIT slightly negative, despite still-healthy gross margin (~78%). This follows two strong years in 2022–2024 with solid net margins (~17–23%) and positive operating profitability, but the recent downturn and multi-year revenue declines (2023–2025) weaken confidence in earnings stability.

Balance Sheet

Leverage is moderate but rising: debt-to-equity increased to ~0.72 in 2025 from ~0.31 in 2022–2023, while equity declined to 349M from 371M in 2024. Total assets also stepped down (802M vs 872M in 2024). The balance sheet is not over-levered, but the higher debt load paired with a return to losses increases risk versus prior years when returns on equity were strong.

Cash Flow

Cash generation remains a key support: operating cash flow improved to 151M in 2025 (up from 97M in 2024) and free cash flow rebounded to +51M from -36M in 2024. However, cash flow has been volatile (including negative free cash flow in 2024), and in 2025 the business produced cash while reporting a net loss, which can be positive near-term but also highlights earnings quality and sustainability questions.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	617.00M	731.00M	787.00M	848.00M	732.00M
Gross Profit	482.00M	607.00M	631.00M	619.00M	522.00M
EBITDA	107.00M	209.00M	242.00M	289.00M	249.00M
Net Income	-23.00M	126.00M	155.00M	194.00M	158.00M
Balance Sheet
Total Assets	802.00M	872.00M	799.00M	801.00M	585.00M
Cash, Cash Equivalents and Short-Term Investments	48.00M	21.00M	95.00M	150.00M	206.00M
Total Debt	251.00M	257.00M	121.00M	121.00M	72.00M
Total Liabilities	453.00M	501.00M	403.00M	410.00M	254.00M
Stockholders Equity	349.00M	371.00M	396.00M	391.00M	331.00M
Cash Flow
Free Cash Flow	51.00M	-36.00M	119.00M	185.00M	210.00M
Operating Cash Flow	151.00M	97.00M	211.00M	236.00M	240.00M
Investing Cash Flow	-99.00M	-133.00M	-109.00M	-192.00M	-146.00M
Financing Cash Flow	-23.00M	-38.00M	-155.00M	-97.00M	-135.00M

Profoto Holding AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PRFO, the sentiment is Negative. The current price of 10.7 is above the 20-day moving average (MA) of 9.64, above the 50-day MA of 10.14, and below the 200-day MA of 16.19, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 12.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PRFO.

Profoto Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MIPS	61 Neutral	kr6.72B	56.03	23.68%	1.85%	23.02%	32.69%
THULE	60 Neutral	kr25.28B	22.68	14.62%	3.54%	8.93%	-12.56%
DOM	55 Neutral	kr12.06B	28.19	―	2.85%	-13.49%	60.49%
NEWA.B	52 Neutral	kr13.67B	17.45	12.33%	3.12%	2.80%	-8.84%
PRFO	51 Neutral	kr372.00M	-15.50	3.22%	―	-11.02%	-90.00%
BULTEN	48 Neutral	kr907.73M	-82.52	-0.32%	5.49%	-10.68%	-103.85%

Profoto Holding AB Corporate Events

Profoto Slashes Targets and Skips Dividend as 2025 Profit Turns to Loss

Profoto reported a sharp deterioration in 2025 results, with full-year net sales falling 15.6 percent to SEK 617 million, and EBIT swinging to a loss of SEK 6 million from a SEK 167 million profit a year earlier. Margins were hit by weaker organic demand, currency headwinds, and impairment and restructuring charges, pushing the adjusted EBIT margin down to 6.6 percent from 20.9 percent, although operating cash flow improved to SEK 151 million and leverage remained moderate.

In the fourth quarter, sales declined 18.6 percent and profitability weakened, prompting the company to secure a new revolving credit facility on broadly unchanged terms and to update its financial targets amid a strategic shift toward LED products. The board lowered its long-term ambitions to organic growth above 5 percent and a 20 percent EBIT margin and, citing uncertain macroeconomic conditions and the need to preserve financial flexibility, proposed paying no dividend for 2025 despite its policy of distributing at least half of net profit over time.

The most recent analyst rating on (SE:PRFO) stock is a Hold with a SEK11.50 price target. To see the full list of analyst forecasts on Profoto Holding AB stock, see the SE:PRFO Stock Forecast page.

Profoto cuts growth and margin targets as it pivots harder to LED

Profoto Holding AB has revised its financial targets to reflect tougher market conditions and a rapid shift toward LED technology, lowering its annual organic sales growth goal to above 5% from 10% and its EBIT margin target to 20% from 25–30%. The company, which reported 2024 net sales of SEK 731 million and a 23% EBIT margin, will maintain its policy of distributing at least half of net profit through dividends or buybacks.

Management said the new targets better match current market dynamics, including intensified competition and slower growth in its traditional Xenon-based products, while highlighting LED-based offerings and expansion into the cinema segment as key growth drivers. Cost adjustments and planned LED product launches are expected to support solid profitability and long-term value creation for shareholders, as Profoto seeks to defend its market position amid structural changes in professional imaging lighting.

The most recent analyst rating on (SE:PRFO) stock is a Hold with a SEK11.50 price target. To see the full list of analyst forecasts on Profoto Holding AB stock, see the SE:PRFO Stock Forecast page.

Profoto to Present 2025 Year-End Results in Webcast on 11 February 2026

Profoto Holding AB has announced that it will publish its year-end report for 2025 on 11 February 2026 at 08:00 CET, followed by a webcasted telephone conference at 09:00 CET where CEO Anders Hedebark and CFO Linus Marmstedt will present the results and take questions from analysts and investors. The English-language presentation, which will be accessible via webcast and teleconference with materials and a recording available on the company’s investor website, underscores Profoto’s ongoing focus on transparency and engagement with the financial markets as it reports on performance in its global professional imaging lighting business.

The most recent analyst rating on (SE:PRFO) stock is a Hold with a SEK11.50 price target. To see the full list of analyst forecasts on Profoto Holding AB stock, see the SE:PRFO Stock Forecast page.