Education
About Us
Working with TipRanks
Follow Us
Surgical Science Sweden AB (SE:SUS)
:SUS
Top Page
Surgical Science Sweden AB
(SUS)
Select Model
Select Model
Rating:67Neutral
Price Target:
kr32.00
▼(-62.13% Downside)
Action:ReiteratedDate:02/20/26
The score is supported primarily by strong financial resilience (very low leverage) and continued profitability, but capped by weakened earnings/cash-flow consistency and a mixed-to-weak technical setup. Earnings-call outlook is balanced: progress in licensing, pricing and cost actions is offset by meaningful 2026 revenue uncertainty from the Intuitive MoU cancellation. Valuation appears reasonable but not clearly compelling at ~21x earnings without dividend support.
Positive Factors
Balance-sheet strength
An equity-heavy capital structure and very low leverage materially reduce refinancing and solvency risk, providing durable financial flexibility. This supports multi-year investments, M&A optionality, and the ability to absorb revenue volatility without stressing liquidity or forcing short-term cost cuts.
Robotics licensing momentum
Rising license revenues and an expanding robotics pipeline create a higher-margin, repeatable revenue stream. Structural adoption of surgical robotics and multi-customer development relationships increase stickiness, support recurring licensing and services, and deepen long-term OEM partnerships.
Sustainably high gross margins
Consistently strong gross margins reflect scalable software and simulation-driven revenue with limited per-unit cost escalation. High product margins underpin operating profitability even through lumpiness, enabling reinvestment in R&D and margin recovery when revenue normalizes.
Negative Factors
Intuitive MoU cancellation
Loss of a large anticipated robotics partner creates a meaningful, multi-figure revenue hole and reduces visibility for 2026. This structural customer setback slows planned license growth, increases dependency on other OEMs, and raises execution risk for hitting multi-year sales targets.
Volatile cash conversion
Irregular operating cash flow and working-capital swings undermine predictability of internally generated funding. For a growth-oriented med-tech business, inconsistent cash conversion complicates budgeting, limits steady reinvestment or buyback flexibility, and raises sensitivity to timing of large deals.
Integration and IU losses
Acquisition-related integration setbacks and near-term operating losses can dilute consolidated margins and distract management. If ultrasound synergies and U.K. sales do not scale, the business faces persistent profit drag and execution risk that could slow margin recovery.
Surgical Science Sweden AB (SUS) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr1.65B
Dividend YieldN/A
Average Volume (3M)1.61M
Price to Earnings (P/E)24.7
Beta (1Y)0.35
Revenue Growth13.40%
EPS Growth-63.89%
CountrySE
Employees274
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.65
Shares Outstanding51,026,237
10 Day Avg. Volume583,608
30 Day Avg. Volume1,614,194
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)0.39
Price to Sales (P/S)1.67
P/FCF Ratio24.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.25
Revenue Forecast (FY)kr1.01B
Surgical Science Sweden AB Business Overview & Revenue Model
Company DescriptionSurgical Science Sweden AB (publ) develops and markets virtual reality (VR) simulators for evidence-based laparoscopic and endoscopic training. It offers LapSim training system comprising LapSim ST develops to train surgical technologists and surgical assistants; and LapSim essence, a portable and ready-to-use VR simulator. The company also provides EndoSim system, an endoscopy simulator that delivers medical simulation training; TeamSim, a dynamic platform for inter-professional education development taking surgery simulation into the real world teamwork; Simball Box, which offers feedback on velocity with tutorial task videos showing a preferred approach; simbionix simulators; and robotic surgery simulators. Surgical Science AB was founded in 1999 and is headquartered in Gothenburg, Sweden.
How the Company Makes MoneySurgical Science Sweden AB generates revenue primarily through the sale of its surgical simulation products and training solutions to hospitals, medical universities, and training centers worldwide. The company employs a subscription-based model for its virtual reality platforms, allowing institutions to access ongoing updates and support. Additionally, SUS benefits from strategic partnerships with medical institutions and educational organizations that help promote their products, as well as collaborations with medical device manufacturers that enhance their offerings. The company's revenue is also bolstered by participation in training programs and workshops, providing hands-on experiences for healthcare professionals.
Surgical Science Sweden AB Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call presented a mix of clear operational and commercial progress (record license revenue, FX-adjusted sales growth, strong Americas rebound, price increases, larger development pipeline, healthy cash position and Q4 profitability in line with targets) alongside material near-term headwinds (the Intuitive dV5 MOU cancellation with an estimated SEK 60–90m 2026 revenue impact, full-year margin decline vs prior year, IU integration losses and significant declines in certain simulator sales, and notable FX pressure). The company emphasized strategy execution, pipeline strength and cost actions, but the Intuitive-related revenue uncertainty and full-year profitability erosion are sizable concerns for 2026.Q4-2025 Updates
Positive Updates
Quarterly Sales Growth (FX-adjusted)
Q4 sales of SEK 269 million, up 15% in local currencies (7% reported). Full-year sales SEK 992 million, up 12% reported (19% in local currencies).
Record License Revenues (Robotics)
All-time high license revenues of SEK 92 million in Q4, an increase of 21%; license revenues represented 34% of total revenues in the quarter (30% prior year).
Adjusted EBIT and Profitability in Q4
Adjusted EBIT for Q4 of SEK 46 million. Reported adjusted EBIT margin cited at ~17% (18% excluding restructuring), with operating profit of SEK 40 million (15% margin) — Q4 results aligned with the company target of >15% profitability.
Pricing and Margin Initiatives
Average sales prices increased by ~9% vs Q4 2024 at fixed exchange rates with no significant volume impact; company expects further positive price effects going forward.
Regional Outperformance — Americas
North and South America region grew 43% in Q4 driven by the U.S., indicating a clear recovery and stronger sales pipelines in the region.
Strong Robotics Pipeline and Product Rollouts
Surgical Science has relationships with ~20 robotics companies (about 5 bought licenses in Q4), launched RobotiX Express with 14 exercises, and highlighted growing adoption of robotics (Intuitive reported 18% procedure growth; broader market expansion with multiple new robot models).
Development Revenue Momentum and Customer Retention
Development revenues were strong in Q4; pipeline of ongoing development projects was ~15% larger vs year-end 2024 and repeat customers for development projects exceeded 70%, indicating strong customer retention.
Cash Position and Operating Cash Flow
Operating cash flow of SEK 73 million in Q4 (vs SEK 57 million prior year Q4). Year-end cash balance SEK 616 million, providing liquidity to execute strategy.
Negative Updates
Cancellation of Intuitive MOU — Major 2026 Headwind
Intuitive cancelled the memorandum of understanding on dV5 installations; company estimates a negative impact on 2026 license revenues of SEK 60–90 million and has low visibility on future attach rates, creating significant near-term revenue uncertainty.
Full-Year Profitability Decline
Adjusted EBIT margin for the full year declined to 12% (2025) from 19% (2024), reflecting margin pressure across the year despite Q4 improvements.
Ultrasound/Intelligent Ultrasound (IU) Integration Challenges
Pro forma ultrasound revenue (including Intelligent Ultrasound) did not meet expectations despite reported ultrasound sales growth of 48% vs Q4 2024; IU delivered an operating loss of ~SEK 5 million in Q4 and U.K. NHS sales weakness drove lower IU sales (IU had notable declines vs prior year). Integration and synergy realization remain incomplete.
Significant Decline in Simulator Sales to Medical Device Companies
Simulator sales to medical device companies fell to SEK 21 million in Q4 from SEK 43 million in the comparative quarter (a ~51% decline), reflecting lumpiness and timing of larger projects.
Regional Weakness — Asia / China
Asia declined 21% in Q4 driven by continued weak activity and demand in China, representing a meaningful regional headwind.
FX Headwinds and Margin Impact
Adverse currency effects had a large negative impact on results — gross margin down to 66% from 68% (approx. 2.3 percentage points driven by FX) and a full-year negative FX effect of approximately SEK 38 million on ‘other’ items.
Lumpiness and Visibility Risk in License & Simulator Revenue
Robotics and industry sales are lumpy (batch/license orders), with only ~5 of ~20 robotics customers generating revenue in Q4; this creates quarter-to-quarter volatility and limited visibility into future quarterly revenues.
Restructuring and One-time Costs
Restructuring related to consolidation of U.S. operations (Seattle closure) resulted in restructuring charges (~SEK 3 million in Q4) and some ongoing integration costs (acquisition costs ~SEK 23 million for the year), adding near-term cost drag.
Company Guidance
Management reiterated its new financial targets of annual sales growth of 10–15% and profitability >15% and said Q4 was “in line” with these goals (Q4 sales SEK 269m, +7% reported / +15% in local currencies; license revenue a record SEK 92m, +21% YoY; license share 34% vs 30% a year ago). They warned of a SEK 60–90m negative impact on 2026 license revenue from Intuitive’s cancellation of the dV5 MoU, but expect continued robotics momentum (20 robotics customers overall, ~5 transacting in Q4) and a growing robotics pipeline (RobotiX Express with 14 exercises launched). Management also expects further pricing benefits after a ~9% average price increase in Q4 versus Q4 2024, product launches from the Surgical Science–Intelligent Ultrasound platform in Q1, and improved profitability from realized cost savings (IU-related savings GBP 2.5m realized vs target GBP 1.5–2m). Key financial context: full-year sales SEK 992m (+12% / +19% LC), adjusted EBIT Q4 SEK 46m (adjusted EBIT margin ~18%), Q4 operating profit SEK 40m (15% margin), gross margin 66% (vs 68%; FX ~−2.3pp; FY FX effect −SEK 38m), Q4 operating cash flow SEK 73m and year-end cash SEK 616m, with management expecting cash flow to broadly follow profits and no major structural capex (Q4 capex ~SEK 3m).Surgical Science Sweden AB Financial Statement Overview
Summary
Financial resilience is strong thanks to very low leverage and a large equity cushion, but recent operating performance has softened: profitability stepped down from 2023 and cash flow conversion has been volatile (weaker in 2024 with only partial recovery in 2025). Overall profitability remains intact, but margin and cash-conversion consistency are current weaknesses.Income Statement
Revenue has expanded strongly over the multi-year period (notably 2021–2022), but growth cooled materially in 2024 and profitability stepped down from 2023’s peak. Gross margin remains healthy (mid-to-high 60% range in 2022–2024), supporting solid operating profitability, yet EBIT and net income declined in 2024 and net income fell further in 2025 despite revenue growth, indicating margin pressure and/or higher costs below the operating line. Overall, the business is still profitable and scalable, but the recent earnings trajectory is a clear soft spot.72
Positive
Balance Sheet
The balance sheet is a key strength: leverage is very low across most years, with a conservative debt-to-equity profile (e.g., ~0.01 in 2023 and ~0.06 in 2024) and a large equity base relative to assets. While reported debt increased in 2024 versus 2023, the capital structure remains equity-heavy, limiting refinancing and solvency risk. Returns on equity have been positive but have also eased from the 2023 level, consistent with the recent profit normalization.88
Very Positive
Cash Flow
Cash generation has been volatile. Operating cash flow and free cash flow were strong in 2023, but weakened in 2024 (with operating cash flow covering only a modest portion of net income and free cash flow also lower), pointing to working-capital swings and less consistent cash conversion. In 2025, free cash flow improved versus 2024, but operating cash flow remained lower than the 2023 high-water mark. Overall cash flow is positive, yet consistency and cash conversion quality have recently deteriorated.64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 992.34M | 884.09M | 882.85M | 802.54M | 366.78M |
| Gross Profit | 576.90M | 597.90M | 612.88M | 531.52M | 265.94M |
| EBITDA | 192.34M | 224.29M | 324.53M | 271.30M | 115.05M |
| Net Income | 66.82M | 131.65M | 233.97M | 187.97M | 86.25M |
Balance Sheet | |||||
| Total Assets | 4.69B | 5.48B | 4.70B | 4.65B | 3.98B |
| Cash, Cash Equivalents and Short-Term Investments | 616.42M | 968.15M | 634.37M | 433.73M | 316.68M |
| Total Debt | 1.63M | 292.35M | 40.02M | 14.68M | 12.07M |
| Total Liabilities | 418.31M | 651.03M | 357.46M | 413.11M | 393.06M |
| Stockholders Equity | 4.27B | 4.83B | 4.35B | 4.24B | 3.59B |
Cash Flow | |||||
| Free Cash Flow | 68.12M | 89.69M | 194.16M | 94.94M | 24.71M |
| Operating Cash Flow | 79.80M | 137.22M | 238.29M | 129.49M | 39.08M |
| Investing Cash Flow | -134.25M | -47.53M | -44.13M | -34.55M | -2.73B |
| Financing Cash Flow | -259.68M | 227.65M | 15.85M | 17.09M | 2.92B |
Surgical Science Sweden AB Technical Analysis
Positive
84.50
Price Trends
29.32
Positive
50.11
Negative
88.78
Negative
Market Momentum
0.63
Negative
61.31
Neutral
76.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SUS, the sentiment is Positive. The current price of 84.5 is above the 20-day moving average (MA) of 27.35, above the 50-day MA of 29.32, and below the 200-day MA of 88.78, indicating a neutral trend. The MACD of 0.63 indicates Negative momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 76.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SUS.
Surgical Science Sweden AB Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | kr1.65B | 24.67 | ― | ― | 13.40% | -63.89% | |
62 Neutral | kr2.57B | 8.92 | 167.77% | ― | 2687.51% | ― | |
55 Neutral | kr898.20M | 86.36 | 6.93% | ― | -5.80% | -65.99% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | kr707.47M | -4.79 | -36.55% | ― | 62.24% | 21.16% | |
49 Neutral | kr5.91B | 234.73 | 1.32% | ― | 8.39% | -85.36% | |
44 Neutral | kr609.76M | -78.80 | -6.81% | ― | -8.10% | 62.08% |
* Healthcare Sector Average
SE:SUS
Surgical Science Sweden AB
32.30
-121.50
-79.00%
SE:SEZI
Senzime AB
4.50
-0.99
-18.03%
SE:XVIVO
Xvivo Perfusion AB
187.50
-240.50
-56.19%
SE:BACTI.B
Bactiguard Holding AB
17.40
-19.40
-52.72%
SE:SANION
Saniona AB
18.62
11.87
175.85%
SE:CRAD.B
C-Rad AB Class B
26.60
-5.65
-17.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.