Adverty (ADVT) Q2 2025 earnings summary

Executive summary

• Achieved significant cost savings and organizational restructuring, reducing costs by 17.7% in H1 2025 compared to the previous year.

• Revenue for H1 2025 declined 13.9% year-over-year in SEK, but gross profit and margins improved.

• Strengthened technical platform with expanded compatibility and new features, including public SDK for web games.

• Noted a temporary decline in direct sales as agencies shifted budgets to programmatic, but signs of recovery are emerging.

• Retention rate for game integrations reached 99% in H1 2025, indicating strong developer relationships.

Financial highlights

• H1 2025 revenue: KSEK 14,084, down from KSEK 16,361 year-over-year; Q2 2025 revenue: KSEK 7,466, down from KSEK 8,445.

• Gross margin improved to 29% in Q2 2025 from 24% in Q2 2024.

• EBITDA for H1 2025: KSEK -5,060 (vs. -5,382 year-over-year); Q2 2025: KSEK -2,251 (vs. -2,717 year-over-year).

• Net loss for H1 2025: KSEK -10,842 (vs. -10,788 year-over-year); Q2 2025: KSEK -5,158 (vs. -5,554 year-over-year).

• Cash flow for H1 2025: KSEK -13,237; cash position at period end: KSEK 3,886.

Outlook and guidance

• Expecting stronger performance in H2 2025 as agency budgets recover and demand increases.

• Focus remains on scalable growth, technical innovation, and commercial process optimization.