Terranet AB Class B (TERRNT.B) AI Stock Analysis

• Market Cap: kr144.62M
• Dividend Yield: N/A
• Average Volume (3M): 10.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: N/A
• EPS Growth: 24.94%
• Country: SE
• Employees: 16
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 2,181,277,600
• 10 Day Avg. Volume: 10,863,450
• 30 Day Avg. Volume: 10,496,515
• PEG Ratio: 0.08
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.53
• 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): kr455.38M

• Rating: 42 Neutral
• Price Target: kr0.07 ▼(-2.86% Downside)
• Action: Reiterated Date: 02/09/26
• Date: Action: Reiterated 02/09/26

The score is held down primarily by very weak financial performance—ongoing losses, negative gross profit, and sustained cash burn—despite some balance-sheet leverage improvement. Technical indicators are broadly neutral and do not offset the fundamental risk. Valuation remains unattractive/uncertain due to negative earnings and no provided dividend support.

Positive Factors

Diversified recurring revenue model

Terranet’s revenue mix (licensing, SaaS, OEM partnerships and potential government grants) creates structurally diversified and recurring income channels. Over months, this mix can smooth cash flow and support scale if product adoption grows, reducing single-customer dependency.

Proprietary tech and domain focus

Owning real-time processing systems and proprietary algorithms in vehicle connectivity provides a durable competitive edge. Such IP can create switching costs, enable differentiated product offerings to OEMs, and position the firm to capture long-term structural demand in mobility and ADAS.

Improved leverage and larger equity base in 2025

The meaningful improvement in debt-to-equity and the larger equity base in 2025 materially improve financial flexibility. A stronger capital structure reduces near-term refinancing pressure and gives management more runway to execute commercial rollouts and partnership initiatives.

Negative Factors

Negative gross profit across years

Negative gross margins indicate the product or service fails to cover direct costs, a structurally unsustainable position. Unless Terranet can raise prices, cut direct costs, or materially change its cost-of-delivery model, core operations cannot generate scalable profit over the medium term.

Consistent operating and free cash flow deficits

Persistent negative operating and free cash flow demonstrate ongoing cash burn that will require external financing to sustain operations. This constrains strategic flexibility, risks shareholder dilution, and undermines the company's ability to invest in product commercialization without steady cash generation.

Zero reported revenue in 2025

Recording zero revenue in the latest year severs recent growth momentum and suggests contract loss, recognition issues, or execution failure. Over a multi-month horizon this raises structural questions about customer traction and the firm's ability to convert its technology pipeline into sustainable commercial sales.

Terranet AB Class B Business Overview & Revenue Model

Company Description

Terranet AB designs and develops sensor applications for road safety. It offers VoxelFlow, a software to detect car front with lightning-fast sensor technology. The company was formerly known as TerraNet Holding AB (publ). The company was founded in 2004 and is headquartered in Lund, Sweden.

How the Company Makes Money

Terranet generates revenue primarily through the licensing of its technology and software solutions to automotive manufacturers and other stakeholders in the transportation industry. The company's revenue model includes direct sales of its proprietary technology, recurring revenue from software-as-a-service (SaaS) subscriptions, and partnerships with major automotive brands for joint development projects. Additionally, Terranet may benefit from government contracts and grants aimed at promoting innovation in transportation technology, further diversifying its revenue streams.

Terranet AB Class B Financial Statement Overview

Summary

Financial performance is very weak: persistent net losses, negative gross profit across reported years, and consistently negative operating and free cash flow indicate an unprofitable core business with ongoing cash burn. The balance sheet shows some improvement (lower debt-to-equity and higher equity in 2025), but returns on equity remain significantly negative and the company appears reliant on external funding.

Income Statement

The income statement is very weak, with persistent losses and negative profitability. Revenue has been volatile—rising sharply from 2022 to 2024—but 2025 shows zero revenue, which materially worsens the outlook. Gross profit is negative across all reported years (implying the core offering is not covering direct costs), and operating results remain deeply negative (EBITDA and EBIT losses). Net losses continue each year, with margins extremely negative in 2020–2024 and effectively not meaningful in 2025 due to zero revenue.

Balance Sheet

The balance sheet is mixed. Leverage is moderate overall, and the debt-to-equity ratio has improved meaningfully from 2022–2023 levels to 2025 (lower debt relative to equity). Equity also increases sharply in 2025 versus 2024, providing a larger capital base. However, returns on equity are consistently and significantly negative, reflecting ongoing losses and poor efficiency of capital, and the company remains reliant on external funding to sustain operations.

Cash Flow

Cash flow quality is weak, with operating cash flow consistently negative each year, indicating the business is not generating cash from operations. Free cash flow is also consistently negative, and it deteriorated in 2025 versus 2024 (double-digit decline), extending the cash burn profile. While free cash flow has generally tracked net losses (free cash flow to net income near 1x), the absolute level of cash outflow remains large and suggests continued financing needs unless operating performance improves.

Breakdown	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	3.95M	2.56M	748.00K	1.37M
Gross Profit	-3.20M	-1.44M	-15.47M	-15.24M	-7.45M
EBITDA	-41.21M	-33.86M	-33.59M	-27.23M	-40.81M
Net Income	-46.41M	-39.12M	-73.15M	-93.94M	-47.87M
Balance Sheet
Total Assets	83.17M	52.88M	60.23M	89.44M	115.90M
Cash, Cash Equivalents and Short-Term Investments	37.68M	18.54M	29.01M	26.71M	62.79M
Total Debt	12.34M	10.52M	18.89M	36.47M	36.93M
Total Liabilities	18.84M	24.14M	31.48M	41.05M	42.37M
Stockholders Equity	54.33M	28.73M	28.75M	48.38M	73.53M
Cash Flow
Free Cash Flow	-38.63M	-41.79M	-37.06M	-31.80M	-51.79M
Operating Cash Flow	-38.26M	-37.17M	-34.11M	-28.12M	-41.59M
Investing Cash Flow	-8.20M	-4.62M	-3.12M	-8.44M	-42.86M
Financing Cash Flow	65.61M	31.29M	39.52M	480.00K	102.75M

Terranet AB Class B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:TERRNT.B, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 48.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:TERRNT.B.

Terranet AB Class B 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%
SFTR	58 Neutral	kr150.87M	224.82	―	―	―	―
SFL	54 Neutral	kr79.75M	-5.44	-5.80%	―	5.70%	-142.93%
BUSER	51 Neutral	kr249.46M	-0.85	―	―	―	―
MOBA	46 Neutral	kr17.01M	-0.07	―	―	―	―
TERRNT.B	42 Neutral	kr144.62M	-2.94	-128.85%	―	―	24.94%
GREAT	42 Neutral	kr219.76M	-5.44	―	―	-69.94%	-7367.66%