RaySearch Laboratories (RAY) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 net sales of SEK 332 million, a 29% year-over-year increase, with strong growth in license (+39.4%) and support (+17.3%) revenues and a positive growth outlook.

• Operating profit reached SEK 75 million (23% margin), up from SEK 46 million (18%) last year; adjusted margin excluding currency effects was 29%.

• Order intake surged 72% to SEK 410 million, including major contracts in China and Denmark; order backlog at SEK 1,734 million.

• Cash and cash equivalents stood at SEK 503 million, with no loans and stable cash flow from operations.

Financial highlights

• Net sales rose 29% year-over-year to SEK 332 million; license sales grew 39% to SEK 165 million, and support revenue increased 17% to SEK 125 million.

• Operating expenses increased 12% to SEK 216 million, mainly due to higher headcount.

• Cash flow from operations was SEK 147 million, with net cash flow at SEK 66 million and cash conversion at 156%.

• Rolling 12-month net sales reached nearly SEK 1.3 billion, with EBIT of SEK 290 million (23% margin).

• Equity/assets ratio improved to 44.8%; net cash position at SEK 53.9 million.

Outlook and guidance

• Confident in achieving at least a 25% operating margin by 2026, with current trends and strong sales momentum supporting this target.

• Expecting further RayCare orders in 2025, especially as integration with Varian TrueBeam expands addressable market.

• Revenue from the Heyou order will be fully recognized by end of 2026; Spanish Ortega project revenue to be recognized over the next 2-3 years.

• Favorable growth expected for the remainder of 2025, supported by robust order intake and product innovation.