Third quarter 2025 compared to 2024, Group

• Net sales amounted to SEK 72.7 million (93.8), corresponding to a decrease of -22% (91%)
• The FX-adjusted net sales decreased by -18% (93%)
• Software revenue amounted to SEK 48.5 million (72.3). The share of total sales reached 67% (77%)
• Adjusted EBIT amounted to SEK -11.7 million (16.3), corresponding to an adjusted EBIT margin of -16%, compared to 17% for the same period last year
• Net income amounted to SEK -13.3 million (11.1)
• Earnings per share before dilution amounted to SEK -0.35 (0.32) and diluted to SEK -0.35 (0.32)

First nine months 2025 compared to 2024, Group

• Net sales amounted to SEK 239.3 million (230.0), rendering a net sales growth of 4% (3%)
• The FX adjusted net sales growth for the quarter was 8% (2%)
• Software revenue amounted to SEK 140.9 million (152.2). The share of total sales reached 59% (66%)
• Adjusted EBIT amounted to SEK -14.7 million (-32.4), corresponding to an adjusted EBIT margin of -6%, compared to -14% for the same period last year
• Net income amounted to SEK -31.7 million (-27.8)
• Earnings per share before dilution amounted to SEK -0.83 (-0.79) and diluted to SEK -0.83 (-0.79)

A word from the CEO:

We continue to strengthen our position within defence and preparedness, while our offering in the Resilience domain has developed more slowly than expected. During the third quarter, revenue declined compared with the same period last year, which also had a negative impact on earnings. To ensure maximum focus on the areas where we are strongest today and see the greatest opportunities going forward, we will carry out a strategic shift towards a more streamlined focus on products for Defence, Total Defence, and related expert services. 
 
Since our founding more than two decades ago, 4C Strategies has contributed to building resilience across societies, corporations, and armed forces. The historic rearmament now underway in Europe is increasingly directed towards the areas in which we operate, and we expect this development to accelerate during 2026 and beyond. At the same time, our efforts in the Resilience domain have grown more slowly than anticipated. We were early to enter this area and invested in several geographies, but despite a high level of market interest and political attention, this has not translated into new contracts and customers at the pace we had forecast. Having monitored developments closely for some time, we have now decided to lower our level of ambition in this area. The Resilience business will henceforth be run in a more selective and profitability-oriented manner, resulting in efficiency gains of approximately SEK 40 million annually. This will make us more focused, faster in execution, and better positioned to invest where demand and growth potential are strongest going forward. Our product offering within defence holds significant potential, not only within core military operations but also in adjacent areas where demand for capability development, exercises, and training is increasing. This creates opportunities for us to leverage our deep expertise and experience from the defence sector to offer these products and services to a broader customer base with strong growth prospects. 
 
Quarter in brief 
EBIT amounted to SEK –11.7 million (16.3), mainly due to market uncertainty and delayed customer decisions in the United States. The same period last year benefited from a few large individual contracts, which affects the comparison. Net sales totalled SEK 72.7 million (93.8), with software revenues accounting for 67 percent of the total. 
 
North America 
During the quarter, we continued to focus on direct sales to end customers within the U.S. Department of War. The interest is clear, and we signed new contracts and initiated new deliveries during the period. At the same time, 2025 has been marked by increased uncertainty and greater challenges in closing deals. This is linked to uncertain budget appropriations and shifting priorities under the new U.S. administration. The situation has worsened after the end of the quarter with the ongoing U.S. government shutdown, now entering its second month. Our strategy to build a broad customer base remains unchanged. In parallel, we continue to engage with partners and agencies on larger programs that are still active. Overall, the direction of travel is positive, and we see our offering as well aligned with the priorities now being emphasised at the highest levels in the United States. Some uncertainty related to contract conversion and revenue timing is expected to persist towards the end of the year, but we anticipate a return to positive momentum once the government shutdown concludes. 
 
EMEA 
In EMEA, the third quarter is traditionally affected by holiday periods, leading to a lower level of activity. We delivered new capability to NATO, which was tested in the field and resulted in additional call-offs and extensions of approximately SEK 15 million for delivery during the remainder of 2025 and into 2026. 
This contract is positive in itself but also offers further potential, as our Exonaut software is now being used as the standard system for evaluating new systems within NATO. We also conducted successful tests with three additional European NATO nations while maintaining an active pipeline across the region. Demand for exercises and training continues to rise as defence investments increasingly shift from new material acquisitions to the generation and measurement of operational capability. 
 
APAC 
In APAC, net sales for the quarter were lower than in the corresponding period last year, mainly due to timing effects in ongoing deliveries. At the same time, we have strengthened relationships with defence customers and signed an extended and expanded agreement with a strategically important client. This has been one of the region’s main priorities this year and is expected to contribute positively to earnings for several years ahead. We have also deepened our collaboration with public-sector organisations, including deliveries within maritime protection and new counter-terrorism projects in Australia and New Zealand. During the quarter, we further strengthened our Australian team by adding two senior software developers, an important step to ensure success in upcoming projects and reinforce our long-term presence in the region. 
 
Expert Services 
The Expert Services business developed steadily during the quarter, although some larger projects were affected by temporary resource constraints. This partly reflects that many of our customers are now building their own preparedness and security functions, which has temporarily limited the availability of specialised expertise. Despite this, we maintained solid margins and enter the next quarter with a stable order book. In a time of increased global uncertainty, our Expert Services team plays a central role in supporting organisations and companies in strengthening their preparedness and ability to manage risks and crises. Expert Services remains a vital part of our business, complementing our software solutions with practical experience and advisory support that enhance our customers’ overall capability. 
 
Moving forward with clear direction 
As the world changes rapidly, so must we. 4C Strategies is well positioned for the new era of defence and preparedness now taking shape. By focusing our resources on areas with the strongest growth potential, we are creating a more efficient and scalable organisation that is better equipped for the future. This transformation is not about limiting ourselves, it is about growing where we make the greatest difference and see the greatest opportunities. With a clear strategy, a dedicated team, and strong demand within our core segments, we are ready to enter the next phase: strengthening our customers’ capabilities and driving profitable growth over time. 

Jonas Jonsson
CEO