Rolling Optics (RO) AI Stock Analysis

• Market Cap: kr58.13M
• Dividend Yield: N/A
• Average Volume (3M): 14.62K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.43
• Revenue Growth: -0.73%
• EPS Growth: -136.62%
• Country: SE
• Employees: 18
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.02
• Shares Outstanding: 266,636,930
• 10 Day Avg. Volume: 8,681
• 30 Day Avg. Volume: 14,620
• PEG Ratio: -0.02
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 1.57
• P/FCF Ratio: -1.72
• 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: 47 Neutral
• Price Target: kr0.28 ▲(10.40% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily held back by weak financial performance—widening losses and sharply worse cash burn—despite strong gross margins and a debt-free balance sheet. Technicals provide only partial support (better short-term momentum but weak longer-term trend), and valuation offers limited help given the negative P/E and no dividend data.

Positive Factors

High Gross Margins

Sustained ~75% gross margins indicate advantaged unit economics and product-level profitability potential. Over a multi-quarter horizon this margin cushion supports investment in distribution or R&D to drive scale and makes operational leverage achievable if SG&A growth is controlled.

Debt-Free, Conservative Balance Sheet

A debt-free balance sheet materially reduces financial risk and gives management flexibility to fund growth or weather losses without immediate covenant pressure. The equity cushion provides capacity for strategic investments or external financing on better terms if needed.

Historical Revenue Growth / Demand Traction

Meaningful revenue expansion over several years signals product-market fit and growing customer adoption. This revenue base can be leveraged to scale fixed-cost absorption, turning strong gross margins into improving operating profitability as growth stabilizes.

Negative Factors

Widening Operating Losses

Persistent and deepening operating losses erode capital and indicate the business has not yet converted strong product economics into corporate profitability. Unless structural cost curves or pricing change, continued deficits threaten sustainability and require external funding or dilution.

Sharp Deterioration in Cash Generation

Material negative operating and free cash flow in 2025 shows the business is not self-funding and cash burn increased sharply. This elevates funding risk, limits reinvestment, and increases the likelihood of future capital raises or tighter liquidity management that can impair execution.

Eroding Equity & Negative Returns

Declining equity and consistently negative ROE reflect cumulative losses that shrink the capital buffer. Over months this reduces financial flexibility, may weaken counterparty confidence, and constrains options for growth without dilutive financing or meaningful profitability improvement.

Rolling Optics Business Overview & Revenue Model

Company Description

Rolling Optics Holding AB (publ) develops, designs, produces, and sells products in visual authentication based on in-house developed and patented technology in micro-optics. The company was founded in 2005 and is based in Solna, Sweden.

How the Company Makes Money

Rolling Optics generates revenue through the sale of its proprietary micro-optical products and solutions. The company primarily earns money by providing high-security anti-counterfeiting labels to industries like pharmaceuticals, electronics, and luxury goods, where brand protection is critical. Additionally, RO offers customized optical design solutions to brands seeking to differentiate their products through unique visual effects. Partnerships with major companies in these sectors, as well as ongoing innovation in optical technology, significantly contribute to RO's earnings by expanding its market reach and enhancing its product offerings.

Rolling Optics Financial Statement Overview

Summary

Mixed fundamentals: strong gross profit and margins with a debt-free balance sheet, but operating losses persist and widened in 2025 alongside a sharp deterioration in operating and free cash flow, increasing funding risk over time.

Income Statement

Revenue has grown materially versus 2022 (SEK 20.7m to SEK 39.8m in 2025), showing demand traction, and gross profit remains strong (SEK 28.0m in 2025; ~75% gross margin in 2024). However, profitability is the key drag: operating results are consistently loss-making (EBIT negative every year), and losses widened sharply in 2025 (net loss SEK 23.5m vs. SEK 9.3m in 2024) alongside a slight revenue decline (2025 revenue growth -4.3%). Overall, strong gross economics but an unstable and worsening earnings profile.

Balance Sheet

The balance sheet appears conservative with zero debt in 2024 and 2025 (down from SEK 16.0m in 2022), which meaningfully reduces financial risk. Equity remains sizable (SEK 67.0m in 2025) relative to the company’s asset base (SEK 96.6m in 2025), providing cushion despite ongoing losses. The main weakness is continued negative returns to shareholders (return on equity negative in all years provided), and equity has trended down since 2022, indicating the losses are eroding capital over time.

Cash Flow

Cash generation is weak and volatile. Operating cash flow is negative across the period and deteriorated sharply in 2025 (SEK -27.0m vs. SEK -2.2m in 2024), indicating higher cash burn. Free cash flow is also consistently negative (SEK -36.4m in 2025; SEK -11.1m in 2024), implying the business is not self-funding and may require ongoing liquidity support. A positive point is that in 2023–2024 free cash flow was less negative than net income, but 2025 reverses that improvement materially.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.85M	39.56M	32.82M	20.67M	26.87M
Gross Profit	28.00M	29.61M	16.89M	14.44M	18.45M
EBITDA	-16.29M	-3.73M	-4.98M	-11.71M	-11.07M
Net Income	-23.50M	-9.29M	-9.51M	-14.25M	-13.29M
Balance Sheet
Total Assets	96.59M	109.21M	105.18M	146.95M	139.35M
Cash, Cash Equivalents and Short-Term Investments	18.81M	36.02M	38.53M	86.03M	46.13M
Total Debt	0.00	0.00	0.00	15.99M	11.11M
Total Liabilities	29.62M	37.21M	32.76M	47.52M	43.63M
Stockholders Equity	66.97M	72.00M	72.42M	99.42M	95.71M
Cash Flow
Free Cash Flow	-36.39M	-11.07M	-14.08M	-26.55M	-30.25M
Operating Cash Flow	-27.03M	-2.25M	-5.89M	-10.69M	-13.15M
Investing Cash Flow	-9.35M	-8.82M	35.18M	-15.40M	-15.49M
Financing Cash Flow	19.18M	8.56M	-33.42M	22.60M	4.83M

Rolling Optics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.25
• 50DMA: Positive
• 100DMA: Negative
• 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:RO, the sentiment is Positive. The current price of 0.25 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.25, and below the 200-day MA of 0.71, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 61.66 is Neutral, neither overbought nor oversold. The STOCH value of 30.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:RO.

Rolling Optics 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%
FING.B	49 Neutral	kr61.16M	-1.74	-37.93%	―	-82.93%	94.83%
RO	47 Neutral	kr58.13M	-2.32	-26.75%	―	-0.73%	-136.62%
ACCON	47 Neutral	kr818.96M	-40.12	-9.00%	―	-1.32%	51.89%
GPX	45 Neutral	kr62.85M	-8.52	―	―	-15.54%	-263.54%
INSP	41 Neutral	kr3.83M	-0.12	-93.13%	―	-0.75%	65.47%