Wise Group AB (WISE) AI Stock Analysis

• Market Cap: kr87.95M
• Dividend Yield: N/A
• Average Volume (3M): 1.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -20.88%
• EPS Growth: 14.14%
• Country: SE
• Employees: 397
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): -0.34
• Shares Outstanding: 7,390,860
• 10 Day Avg. Volume: 1,013
• 30 Day Avg. Volume: 1,319
• PEG Ratio: 0.29
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 0.00
• 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: 43 Neutral
• Price Target: kr16.00 ▲(29.55% Upside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

The score is held down primarily by weak financial performance—multi-year revenue declines, sustained losses, a very weak 2025 gross profit profile, and cash flow deterioration alongside rising leverage. Technicals are a partial offset with strong trend/momentum (price above key moving averages and positive MACD), but elevated RSI reduces the technical upside signal. Valuation remains challenged because the company is loss-making (negative P/E) and dividend support is not indicated.

Positive Factors

Diversified service lines

Wise’s mix of recruitment, staffing, executive search, HR consulting and training creates multiple revenue levers that reduce single-market dependence. Over 2–6 months this structural diversification supports resilience vs. cyclical hiring swings and enables cross-selling to existing clients, preserving revenue potential even if one line softens.

Public and private sector client mix

Serving both public and private clients diversifies demand drivers and mitigates exposure to single-sector downturns. Public-sector work can provide more predictable contract flows and longer-term engagements, while private clients offer growth opportunity—together improving revenue stability and contract renewal visibility across business cycles.

Higher-value retained search revenue

Retained executive search generates higher-value, milestone-linked fees and often stronger gross margins and cash visibility than contingent placements. Structurally, this line supports margin stability and recurring cash inflows, giving management a foundation to fund strategic investments and partially offset lower-margin staffing revenue during weaker hiring cycles.

Negative Factors

Multi-year revenue decline

Sustained revenue decline over multiple years signals loss of scale, reduced market share or weakening demand for core services. This trend erodes operating leverage, increases per-unit costs, and constrains reinvestment capacity—making medium-term recovery harder without clear strategic actions to rebuild client wins or expand higher-margin offerings.

Negative gross profit in 2025

A negative gross profit point to costs exceeding direct revenue, possibly from pricing pressure, contract losses, or one-off write-downs. This undermines the core business economics and means even before overheads the company is losing money—requiring structural cost realignment or pricing changes to restore sustainable profitability.

Rising leverage and weaker balance sheet

Higher leverage combined with multi-year losses reduces financial flexibility and increases refinancing and interest risks. With assets and equity contracting, the company has less cushion to fund working capital or invest in talent and technology, limiting its ability to pursue growth initiatives or absorb further demand shocks without external financing.

Wise Group AB Business Overview & Revenue Model

Company Description

Wise Group AB (publ) provides recruitment and consultancy services in Sweden, Finland, and Denmark. The company offers services within the areas of HR, payroll, finance, marketing, communication, and business administration for commercial, public, and non-profit organizations; HR consultancy, leadership, organizational development, and coaching services; and recruitment and professional staffing of IT specialists, developers, and IT management leaders. It also engages in search and interim management of leadership and specialist roles; recruitment and consultant staffing services within marketing and communication; recruitment, interim management, and advisory counseling services for the sales organization. In addition, the company provides recruitment and consultant staffing services that fill positions, such as CFOs, controllers, and accountants, as well as assistant of CEO and management assistant, executive assistant, administrative manager, office manager, front desk manager, customer service manager, project coordinator, administrator, facility manager, facility coordinator, sales, purchase, law, and office assistants, as well as front desk and customer service assistants. Wise Group AB (publ) was incorporated in 2005 and is based in Stockholm, Sweden.

How the Company Makes Money

Wise Group AB generates revenue through multiple streams, primarily from project-based consulting services, where they charge clients for custom software development and IT advisory services. Additionally, the company earns income through recurring revenue models, such as subscription fees for cloud-based solutions and ongoing support services. Strategic partnerships with technology providers and industry leaders also contribute to their earnings by providing access to new markets and enhancing service offerings. These collaborations enable Wise Group AB to leverage complementary strengths and expand their client base, ultimately driving revenue growth.

Wise Group AB Financial Statement Overview

Summary

Financial results have deteriorated meaningfully: revenue has declined for three consecutive years, net losses persisted from 2023–2025, and 2025 showed negative gross profit/margin. Cash flow weakened sharply with operating cash flow turning slightly negative in 2025 and free cash flow effectively zero, while leverage rose as equity declined (debt-to-equity ~1.52 in 2025).

Income Statement

Operating performance has weakened materially after 2022. Revenue has declined for three consecutive years (down ~10% in 2025 vs. 2024), and profitability remains negative: net losses persisted from 2023–2025 with negative net margins around ~-2% to -3%. A notable red flag is 2025 showing negative gross profit and negative gross margin, suggesting severe cost pressure and/or non-recurring charges. While EBITDA is still slightly positive in 2024–2025, it is very thin, indicating limited earnings resilience.

Balance Sheet

Leverage has increased and balance sheet cushion has thinned. Debt-to-equity moved from ~0.82–0.89 (2023–2024) to ~1.52 in 2025 as equity declined, and return on equity is negative in the last three years, reflecting ongoing losses. Total assets have also trended down since 2022, consistent with a smaller business footprint. The balance sheet is not in distress based on the data provided, but the direction of leverage and negative returns reduces financial flexibility.

Cash Flow

Cash generation has become inconsistent versus earlier years. Operating cash flow was very strong in 2020–2022, but weakened sharply thereafter, dropping to modestly positive in 2023–2024 and turning slightly negative in 2025. Free cash flow was healthy in 2024 but effectively zero in 2025, and free cash flow growth fell to -100% in 2025. Overall, cash flow is no longer reliably supporting the business through losses, increasing reliance on balance sheet capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	477.19M	630.63M	803.10M	910.46M	744.59M
Gross Profit	-13.46M	264.18M	315.38M	412.93M	340.71M
EBITDA	3.18M	7.53M	9.58M	68.89M	100.09M
Net Income	-15.09M	-19.15M	-16.19M	19.14M	41.37M
Balance Sheet
Total Assets	184.54M	237.76M	306.30M	409.88M	404.27M
Cash, Cash Equivalents and Short-Term Investments	21.15M	36.91M	53.70M	104.03M	114.28M
Total Debt	79.03M	61.30M	71.38M	104.75M	95.25M
Total Liabilities	132.58M	169.25M	219.42M	277.22M	262.55M
Stockholders Equity	51.96M	68.50M	86.87M	132.66M	141.72M
Cash Flow
Free Cash Flow	0.00	3.19M	-7.00K	49.49M	19.59M
Operating Cash Flow	-457.00K	3.19M	924.00K	57.59M	21.83M
Investing Cash Flow	-1.57M	252.00K	-586.00K	-8.33M	83.38M
Financing Cash Flow	-13.73M	-20.37M	-51.24M	-61.17M	-32.49M

Wise Group AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:WISE, the sentiment is Positive. The current price of 12.35 is below the 20-day moving average (MA) of 13.15, below the 50-day MA of 12.85, and below the 200-day MA of 14.84, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 71.28 is Negative, neither overbought nor oversold. The STOCH value of 65.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:WISE.

Wise Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DEDI	56 Neutral	kr382.51M	11.56	―	5.95%	-17.43%	-39.61%
HEGR	50 Neutral	kr21.70M	-1.46	-8.40%	―	-11.42%	-116.51%
PION.B	47 Neutral	kr246.66M	-8.90	-18.85%	―	-17.32%	36.05%
WISE	43 Neutral	kr87.95M	-6.86	-29.57%	―	-20.88%	14.14%