CEO comments

Sales during the first quarter of 2025 amounted to SEK 14.2 million (17.8), which corresponds to a decrease of 20 percent compared to the same period last year. The recently acquired Combinostics contributed with SEK 2.8 million in revenue, distributed across both the American and European markets. Revenues for Combinostics during the first quarter 2024 amounted to SEK 2.6 million.

During the quarter, we have harmonized the revenue recognition for Combinostics in our US subsidiary with the European model for ARR (annual recurring revenue). Revenue is now accrued monthly over the term of the agreement, unlike previously where the entire amount was recognized as revenue in the first month of the agreement. This change negatively affects reported sales in 2025. However, this provides a more accurate picture of our recurring business and will build revenue over time. With the previous principle, sales would have been SEK 1.6 million higher during the quarter. Despite this, the business continues to show clear growth, which is also reflected in the fact that ARR increased to SEK 9.4 million at the end of the quarter - an improvement compared to the previous quarter.

Within our SyMRI business, we see a sales decrease of approximately 35 percent compared to Q1 last year. However, it is encouraging that sales are at about the same level as the fourth quarter of 2024, which is traditionally our strongest quarter. To increase transparency, we have also supplemented our segment reporting in this report with a more detailed geographical breakdown.

Direct sales of SyMRI in the US continue to be challenging, with sales in the region dominated by OEM revenue. We are working with determination to ensure product/market fit and that our organization has the right skills, tools and processes to meet the needs of the market. The US remains our biggest commercial challenge. However, we are pleased to see the positive feedback we are receiving from customers using SyMRI clinically.
Our goal is to scale the business in a way that enables a broader impact in the US market.

In Europe, total sales are slightly lower than last year. On a positive note, SyMRI's own sales have increased in the region, even though OEM revenues have decreased. Since January, we have had a new sales manager in Europe and the integration of Combinostic's sales organization has worked very well.

In the APAC region, we continue to see strong growth, primarily driven by Japan and India. However, we would like to emphasize that sales in these markets may vary between quarters depending on the timing of individual orders.

Operating expenses amounted to SEK 26.8 million (SEK 20.1 million), with the increase mainly explained by Combinostics' operations and negative currency effects of SEK 1.8 million. Consulting costs constitute a significant proportion of external costs and relate primarily to roles with a long-term function in the organization. We continue to have good cost control, and during the quarter we have optimized the organization for increased efficiency.

The operating result amounted to SEK -10 million, which is of course unsatisfactory. At the same time, we see clear signs that the business is developing in the right direction. The integration with Combinostics has already led to synergies, including a reduction in the number of employees in the Swedish organization. The implemented efficiency improvements are expected to take effect from the second quarter onwards, with full impact during the end of the third quarter. The American recovery is crucial, but we are pleased that other markets are showing positive growth.

Despite the negative result, operating activities generated a positive cash flow of SEK 1.8 million during the quarter. Cash and cash equivalents amounted to SEK 22.7 million as of March 31, compared with SEK 16.7 million at the same time last year. Customers' willingness to pay remains good and we are monitoring cash flow closely. We have also increased transparency in this report by specifying the invoicing date for our contract assets in the balance sheet.

Our long-term ambition is to redefine diagnostic imaging by replacing conventional methods with world-class quantitative image analysis, combined with advanced AI.

Through the acquisition of Combinostics, we broaden our strategic focus to include more parts of the healthcare chain, especially in the area of ​​neurodegenerative diseases and monitoring of uncommon, but serious, adverse drug reactions. With Combinostics now integrated into SyntheticMR, we offer a broader portfolio of clinically validated tools for diagnostics and disease monitoring.

During the quarter, we have participated in several global congresses, such as ECR, ITEM and other important industry events. The feedback from both existing and potential customers has been very positive - both in terms of the potential of our technology and the added value that the portfolio expansion through Combinostics brings. Our complementary solutions make it possible to address the same customer groups with a broader offering, which creates increased customer value and a more efficient sales organization.

With a continued focus on commercialization, operational efficiency and global impact, we look forward to the rest of 2025 with confidence.

Johanna Norén 
Acting CEO SyntheticMR

This is a translation of the Swedish version of the report. When in doubt, the Swedish wording prevails.