Note that the content is AI-generated and might contain mistakes. Generation might take some time.
If AI keeps you waiting, feel free to play the mini-game below in the meantime!
1
2025
Q3 REPORT
Q3 2025
JULY - SEPTEMBER
Quarterly
Report
2
2025
Q3 REPORT
2025
Q3 REPORT
2
Contents
4
Q3 2025 in brief
5
Lett er from the CEO
6
Operational development
9
Financial review
12
Outlook
14
Consolidated Financial Statements
21
Alternative Performance Measures (APMs)
23
This is SmartCraft
2025
Q3 REPORT
Proven Scalability
Historical figures demonstrate efficient growth
model, scalability and strong cash flow profile.
Amounts in NOK (millions)
2021
2022
2023
2024
LTM
ARR
267
318
387
482
505
Revenue
271
333
402
511
551
Adjusted EBITDA
109
40%
131
39%
167
42%
190
37%
197
36%
Operational cash flow
107
116
153*
179
168
R&D CAPEX
22
24
37
49
46
Customers
~11 000
~12 000
~12 500
~13 400
~14 100
* adjusted for HomeRun earnout recognized over P&L
3
4
Q3 REPORT
4
2025
Q3 2025 in brief
Third quarter financial highlights
•
Revenue NOK 138 million, a growth of 4.5 percent YoY
•
Continued strong operational cash flow NOK 36 million
•
Annual Recurring Revenue NOK 505 million, an organic
growth of 6 percent YoY
•
Adjusted EBITDA-CAPEX margin of 28 percent,
a 3 percentage point increase YoY
•
Churn of 9.6 percent, a 0.4 percentage point reduction QoQ
Adjusted EBITDA margin development per quarter
Adjusted EBITDA margin Adjusted EBITDA-CAPEX margin
ARR development per quarter
End of period, MNOK
Q3 2023
367.1
Q4 2023
386.6
Q1 2024
401.5
Q2 2024
461.3
Q3 2024
474.4
Q4 2024
482.0
Q1 2025
493.5
6.4%
Q2 2025
504.8
Q3 2025
504.8
4
Q3 REPORT
41.9 %
39.3 %
40.9 %
38.5 %
36.0 %
34.2 %
34.7 %
38.2 %
35.6 %
33.8 %
31.4 %
33.1 %
29.2 %
25.3 %
24.2 %
27.3 %
29.4 %
28.2 %
0.0 %
20.0 %
40.0 %
60.0 %
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q3 2025
5
2025
Q3 REPORT
“We are happy to report a quarter with steady
growth, stronger margins and churn declining”
HANNA KONYI – INTERIM CEO
SmartCraft continued to grow in the third quarter, with ARR
coming in at NOK 505 million. In what is our seasonally low
quarter, ARR grew by 6.4 percent YoY, with organic growth at 6.0
percent. We are happy to report that the rolling 12-month churn
declined for the first time since Q4 2023.
We remain focused on maintaining strong profitability and
cash flow. Our EBITDA-CAPEX margin was 28 percent, up by
3 percentage points compared to the same period last year.
Aiming to further strengthen long-term resilience and stability, we
continue to prioritize a shift towards recurring revenue. In the third
quarter, recurring revenue constituted 97 percent of total revenue,
an increase compared to both last year and the last quarter.
Total revenue grew 4.5 percent YoY driven by organic growth and
currency effects.
I am also happy to highlight our strong cash flow from operations
which improved to NOK 36 million. Our financial position is robust,
with a strong balance sheet, negative net working capital, and a
net cash position. We continue to invest in product development
and innovation. While keeping focus on optimizing short-term
growth and profitability, we are working on two important tracks
to further strengthen our business for the future.
Our scalable product strategy building on the SmartCraft Core
platform is shaping up well, and at the end of the third quarter,
we did a soft launch of SmartCraft Flow, our new solutions for
HVAC and plumbers. We are also seeing encouraging momentum
with new customers on SmartCraft Spark that we launched in
Letter from the CEO
December 2024. Both SmartCraft Spark and SmartCraft Flow
are being developed as global solutions focusing on scale. In
the quarters to come, we will further scale Spark and Flow and
prepare for new AI-enabled modules.
Growth is still hampered by challenging market conditions,
but the underlying situation is nuanced. In Sweden and UK,
SmartCraft continues to grow. Finland shows improving figures
but is affected by a large customer downgrade as announced
previously. Norway is more affected by the market situation
and continue to experience elevated churn and downgrades.
However, with high cost discipline we have a strong margin
increase.
In parallel, from October 1st, we are implementing a new
organizational structure by business areas rather than
geography. This change enables us to maintain and nurture
our local, strong brands, while at the same time leverage
our expertise on the niched customer segments, streamline
decision-making and foster collaboration across countries. In
the future, we will be able to scale faster, tailor our solutions
more effectively, and ultimately driving growth and efficiency.
We remain committed to our medium-term targets of 15–20%
organic revenue growth and margin expansion. With an
increasingly scalable product portfolio, a renewed and efficient
organizational structure, strong financials, and a clear strategy,
SmartCraft is well-positioned to reignite growth as the market
recovers.
6
2025
Q3 REPORT
SmartCraft delivered solid execution, advancing our operational
agenda with a clear focus on product innovation, customer
acquisition, and organizational development.
Sales velocity improved resulting in an increase of 16 percent
YoY in new customer acquisitions. A focus on backend and
usability improvements increased retention and reduced churn.
ARR churn declined for the first time since Q4 2023.
Product and Innovation
Development
The SmartCraft Core platform supports multiple vertical
solutions, enabling faster development and greater reuse of
components. The soft launch of SmartCraft Flow for plumbers
and HVAC professionals, together with continued strong
onboarding to SmartCraft Spark for electricians, underscores
the strength of our platform strategy and our ability to shorten
development cycles and scale adoption across trades.
SmartCraft Spark is increasing momentum, adding on an
increasing number of customers, considering July is a holiday
month. In Q4, the focus will be on scaling SmartCraft Spark and
SmartCraft Flow and preparing for further launches, including
AI-driven modules.
During the quarter, we saw practical benefits in terms of
increased development speed and improved scalability also in
existing solutions.
An example is the targeted churn reduction initiatives at
Bygglet to shift more workflows from the office to the field
to boost customer engagement and product stickiness. This
effort resulted in a 60% increase in Bygglet usage in field for
typical office users versus Q2, driving stickiness and reducing
churn.
Operational development
7
2025
Q3 REPORT
Segments
Amounts in NOK (millions)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Norway
46.3
45.1
141.2
137.4
184.0
Sweden
68.1
63.0
203.0
181.9
247.4
Finland
12.0
12.7
37.5
37.4
50.3
UK
11.4
11.1
33.6
18.0
29.1
Total revenue per segment
137.8
131.8
415.3
374.6
510.8
Norway
2.6 %
8.2 %
2.8 %
10.6 %
9.7 %
Sweden
4.7 %
11.4 %
3.0 %
11.0 %
10.8 %
Finland
(5.3 %)
(0.7 %)
(0.8 %)
(3.9 %)
(2.6 %)
UK
5.1 %
-
5.6 %
-
-
Amounts in NOK (millions)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Norway
20.4
20.5
57.4
61.9
78.6
Sweden
32.8
28.4
97.5
87.6
119.2
Finland
1.6
4.7
7.6
11.7
15.5
UK
2.8
3.8
8.0
6.4
8.6
Adjusted EBITDA per segment
57.6
57.4
170.6
167.6
221.9
Norway
44.1 %
45.5 %
40.7 %
45.0 %
42.7 %
Sweden
48.2 %
45.1 %
48.0 %
48.2 %
48.2 %
Finland
13.2 %
36.7 %
20.4 %
31.3 %
30.9 %
UK
24.7 %
33.9 %
23.8 %
35.4 %
29.6 %
Geographical distribution of revenue
Organic growth
Adjusted EBITDA margin
Distribution of EBITDA per reporting segment (Excluding Group overhead)
8
2025
Q3 REPORT
SmartCraft Sweden
Sweden was characterized by stable development and
continued growth. Total revenue for the quarter amounted
to NOK 68.1 million, an increase of 8.1 percent YoY. Recurring
revenue grew by 10.8 percent, an increase of 1.0 percentage
point QoQ. Adjusted EBITDA reached NOK 32.8 million, with an
EBITDA margin of 48.2 percent, up from 45.1 percent in the third
quarter of last year.
Sweden is increasing the momentum particularly within
the SME Construction segment, and demonstrates clear
operational strength and position for continued growth and
profitability in the coming quarters. The challenges persist
with relatively high churn, but the reduced churn QoQ give an
indication that the market might have bottomed out. Also, the
government funded increase in the ROT tax deduction has
led to higher renovation activity, also pushing for an increased
number of customers.
Overall, the new build market continues to experience
subdued activity and downgrades for our enterprise segment.
However, economic macro reports indicate that the Swedish
construction market is starting to show signs of recovery after
a prolonged downturn. Interest rate cuts in recent years have
begun to improve the outlook, but the rebound is expected to
be gradual.
SmartCraft Norway
Norway showed continued market caution, our customers are
struggling with bankruptcies and are very financially aware
of costs, which is reflected in our churn and downgrades.
However, SmartCraft Spark is picking up speed with focus on
chains and partners and entirely positive feedback from our
customers.
Revenue reached NOK 46.3 million, representing a growth of
2.6 percent compared to Q3 last year. After the centralization
of sales offices, and closing the office on the west coast, full
sales capacity was restored from September and activity is
increasing, resulting in more leads and increased pipeline.
The adjusted EBITDA margin ended at 44.1 percent, a decline of
1.4 percentage points versus Q3 last year but a strong increase
from 39.9 percent in Q2 2025.
SmartCraft Finland
The Finnish market is improving after the earlier downward
trend, and there is renewed momentum among existing
customers. The quarter was marked by positive developments
in customer upgrades, transaction-based revenue is at a
high level, and new sales picked up pace, indicating growth
potential for the coming months.
Still, due to a previously communicated large customer
downgrade, Q3 2025 growth ended at -5.0 percent with a total
revenue of NOK 12.0 million. The adjusted EBITDA was NOK
1.6 million resulting in a margin of 13.2 percent, a decline of 8.4
percentage points QoQ, driven by the loss of revenue.
A key milestone was achieved with Locka’s entry into the
Finnish new-build segment, marked by the signing of the first
customer project.
SmartCraft UK
In general the UK construction market remained subdued in
Q3, with low activity and limited expectations for short-term
improvement. Despite the macro conditions, SmartCraft
continued to deliver revenue growth. Although churn remains
at an elevated level, reflecting ongoing weakness in the
construction sector, the business demonstrated resilience and
stable underlying performance.
Total revenue amounted to NOK 11.4 million with a growth of
5.1 percent, a decline 1.4 percentage points vs the last quarter
driven by non-recurring revenue. Recurring revenue growth
increased by 0.8 percentage points to 7.1 percent.
We maintained operational discipline, strong customer
relationships, and readiness to capitalize on renewed market
activity once the broader construction environment begins to
recover.
9
2025
Q3 REPORT
Financial review
Amounts in NOK (thousands)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Total operating revenue
137 771
131 849
415 333
374 633
510 763
Purchase of goods and services
10 519
11 250
32 595
30 869
43 551
Payroll and related expences
55 023
54 375
166 112
144 746
198 804
Other operating expenses
23 171
21 557
69 138
60 990
83 879
Total operating expenses
88 712
87 182
267 846
236 606
326 234
EBITDA
49 058
44 667
147 488
138 027
184 530
Adjustments of special items
0
2 796
2 792
5 458
5 458
Adjusted EBITDA
49 058
47 463
150 280
143 485
189 987
Depreciation and amortization
21 636
13 271
62 390
36 012
52 465
Operating profit (loss) before financial items and tax
27 422
31 396
85 098
102 015
132 064
EBITDA-margin
35.6 %
33.9 %
35.5 %
36.8 %
36.1 %
Adjusted EBITDA-margin
35.6 %
36.0 %
36.2 %
38.3 %
37.2 %
SmartCraft’s consolidated revenue in Q3 2025 grew by
4.5 percent to NOK 137.7 million, up from NOK 131.8 million in Q3
2024. The revenue growth was driven by organic growth from
the Group’s SaaS solutions, as well as changes in currency
rates. Recurring revenue grew by 7.6 percent in Q3 2025 to
NOK 133.5 million. ARR grew to NOK 504.8 million, a growth of
6.4 percent year over year with an organic growth of
6.0 percent.
SmartCraft’s strategy is to prioritize and maximize recurring
revenue over non-recurring revenue, including transforming
non-recurring services to SaaS services. The short-term result
of this, however, is a negative effect on total revenue as existing
non-recurring revenue is no longer recognized at a single point
in time but over time as recurring revenue. In Q3, the share of
recurring revenue was 96.9 percent, an increase from
94.1 percent in Q3 2024 and 95.5 percent in Q2 2025. We
expect SmartCraft’s recurring revenue share to consistently be
in the mid to high 90 percent range.
The Group had a churn of 9.6 percent in Q3 2025, compared to
8.3 percent last year and 10.0 percent in the previous quarter.
Bankruptcies in the construction industry have increased
materially in the last quarters, and remain at a high level and is
the main reason for churn in Q3 2025.
With no adjustments of EBITDA in the quarter the reported/
adjusted EBITDA was NOK 49.1 million in Q3 2025 (adjusted
EBITDA of NOK 47.5 million in Q3 2024). The adjusted EBITDA
margin for Q3 2025 was 35.6 percent compared to 36.0
percent in Q3 2024. The slight decline in margin compared to
Q3 2024 was mainly due to less capitalizations in Q3 2025. The
adjusted EBITDA-capex margin was 28.2 percent in Q3 2025
(25.3 percent in Q3 2024). SmartCraft is focused on increasing
the margins for all solutions in the medium/long-term.
Depreciations and amortizations were NOK 21.6 million in Q3
2025 compared to NOK 13.3 million in Q3 2024. D&A steadily
increases as a result of the Group’s continuous R&D activities,
9
10
2025
Q3 REPORT
Organic growth YoY
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Fixed price
6.6 %
9.4 %
6.7 %
10.1 %
9.7 %
Transactions
0.9 %
6.5 %
2.6 %
8.0 %
8.0 %
Total recurring
6.2 %
9.1 %
6.3 %
9.9 %
9.6 %
Non-recurring
(46.8 %)
(12.1 %)
(48.1 %)
(20.3 %)
(17.8 %)
Total revenue
3.1 %
8.6 %
2.7 %
8.9 %
8.7 %
and acquisitions. In relation to the ongoing investments in the
development of the new SmartCraft Spark suite to disrupt the
market, the Group adjusted in Q4 2024 the D&A schedule of
two of our other solutions which increased D&A going forward.
In Q3 2025, amortization related to M&A was NOK 9.0 million,
compared to NOK 7.1 million in Q3 2024.
The Group had a net financial expense of NOK 0.3 million in Q3
2025, compared to NOK 2.7 million in Q3 2024. Net financial
items are mainly driven by interest income and currency
effects.
Cash flow
SmartCraft’s business model generates a high and positive
cash contribution throughout the entire year, although there
are seasonal variations relating to the timing of invoicing. Cash
flow from operating activities was NOK 35.9 million in Q3 2025,
an increase from NOK 34.3 million in Q3 2024. The increase
from last year relates to improvements in invoicing routines,
distributing invoicing more evenly through the year. The Group
is constantly working to improve its net working capital,
which will continue to contribute to improved cash flow from
operating activities.
Cash flow from investing activities was NOK -13.1 million in Q3
2025, compared to NOK -14.4 million in Q3 2024. In Q3 2025
investing activity was mainly capitalized development costs
of NOK 10.3 million, compared to NOK 14.2 million in Q3 2024.
In Q3 2025 capitalizations constitute 7.4 percent of revenue, a
decrease from 10.7 percent in Q3 2024.
Net cash flow from financing activities was NOK -9.7 million in
Q3 2025. Through buy-back programs, SmartCraft acquired
217 044 own shares (0.13 percent of total shares) totaling
NOK 6.0 million in Q3 2025.
The latest SmartCraft share buy-back program of up to
NOK 35 million was initiated after the Q2 report in August 2025.
The treasury shares may be used for payment for potential
future acquisitions in combination with cash. Additionally,
treasury shares may be used for potential future settlement of
the Group’s long-term investment program for management
and key employees. At the end of Q3 2025 SmartCraft had,
through previous and existing buy-back programs, acquired
in total 6 143 044 shares (3.58 percent of total shares) at an
average price of NOK 23.47 per share.
SmartCraft has a positive cash contribution from operations
every quarter. The Group operates in an under-penetrated
market and plans to continue its role as a consolidator and
increase its market share. SmartCraft does not expect to pay
dividends in the short to medium term and the accumulating
cash holding will be allocated to investments and acquisitions
supporting the Group’s position and plans, and potential future
share buy-back programs.
Financial position
The balance sheet of SmartCraft remains solid and the
Group has a negative net working capital driven by customer
prepayments. The Group is in a net cash position, is self-
funded and well capitalized to deliver on the organic growth
ambitions and M&A strategy.
11
2025
Q3 REPORT
Total assets amounted to NOK 1 284.0 million
(NOK 1 283.1 million at the end of 2024), of which cash and cash
equivalents amounted to NOK 160.7 million (NOK 125.7 million at
the end of 2024), the increase in cash is driven by operational
activity. Non-current assets amounted to NOK 1 051.2 million
(NOK 1 079.4 million at the end of 2024). The increase in total
assets is driven by the cash flow from operations and changes
in currency rates.
Total liabilities amounted to NOK 319.2 million
(NOK 352.3 million at the end of 2024). The change is mainly
related to the decrease of tax liabilities.
Share information
At the end of Q3 2025 SmartCraft ASA had 171.5 million shares
at par value of NOK 0.01. There have been no changes in shares
or share capital in Q3 2025 in SmartCraft ASA.
As of September 30th, 2025, SmartCraft holds 5 965 691 own
shares (3.48 percent) and total outstanding shares were
165 556 614.
Risk factors
Risk factors are described in the information document
prepared in connection with the listing on Oslo Børs, published
June 14th, 2021 and in the annual accounts for 2024, published
April 10th, 2025.
Financial calendar
Please visit smartcraft.com/investor-relations/ for most
recent calendar update.
12
2025
Q3 REPORT
Outlook
Our priorities are unchanged: drive profitable growth, invest
in innovation that moves the needle for customers, and
strengthen our market position through targeted M&A. We are
continuously refining our M&A playbook to focus on fit, speed
of integration, and pricing discipline, and we remain confident
in our ability to lift margins post-acquisition while protecting
cash and returns.
Overall, the cycle is moving towards a gradual improvement,
albeit with clear geographical differences. We will prioritize
positioning for sales in an improved market, customer
retention, and targeted growth in all our customer segments.
The Swedish, Finnish and UK markets show signs of having
passed the bottom. The markets are all seeing more activity
and optimism. There is some short-term uncertainty due to
many mixed messages within the UK market. Interest rates
have reduced, whether this feeds to mortgage affordability
remains to be seen, however the outlook for inflation remains
challenging with consequent impact on the outlook for further
interest rate reductions. This will impact affordability in the
new homes market. The Norwegian market have seen its
first interest rate cut, and we believe the market will respond
positively like we have seen in the Swedish market, albeit
the improvements are expected to be gradual over several
quarters.
International interest in SmartCraft’s digital solutions is
increasing, supporting the company’s expansion strategy. The
focus going forward is on further strengthening customer
loyalty, driving product development, and maintaining high
efficiency.
Evolving our structure
to accelerate customer-
focused growth
As of October 1st, SmartCraft has transitioned to a business
area-based operating model, structured around four
segments: Electro, HVAC & Plumbing, SME Construction, and
Enterprise. This evolution builds on our proven product-led
strategy, tailored to the needs of our core customer groups. By
aligning more closely with these segments, we sharpen focus,
accelerate execution, and reinforce a scalable platform for
international growth.
Each business area holds end-to-end ownership of product,
go-to-market, and P&L. This will enable faster decisions,
stronger accountability, and clearer links between investment
and outcomes. The structure strengthens our ability to deliver
value locally while enabling scalable, repeatable growth
across Sweden, Norway, Finland, and the UK through shared
playbooks and best practices.
Our product-led strategy remains central. Built on the
SmartCraft Core platform, our future flagship solutions,
SmartCraft Spark and SmartCraft Flow, set the standard for
user experience, data, and AI use. They serve as key enablers
of international expansion and exemplify our approach to
scalable innovation.
M&A remains a focused growth lever. We pursue targeted
acquisitions that add complementary technology, expand our
13
2025
Q3 REPORT
customer base, or open new market footholds, always under
disciplined return thresholds and proven integration playbooks.
Together with our shift toward a SmartCraft master brand
supported by strong sub-brands like SmartCraft Spark and
SmartCraft Flow, these initiatives strengthen our market
position and storytelling.
This new structure positions SmartCraft to grow with
greater focus, speed, and efficiency, while staying true to the
customer-centric principles that have guided us to date.
Events after the reporting
period
On October 6th, SmartCraft announced that Jeremias Jansson is
appointed new Chief Executive Officer in SmartCraft, effective
January 5th, 2026. Following Mr. Jansson’s appointment, interim
CEO Hanna Konyi will assume the role as Deputy CEO from
January 5th, 2026.
On November 3rd, 2025, SmartCraft announced that Chief
Financial Officer Kjartan Bø has decided to step down after
seven years in the role. He will remain in position until January
31st, 2026. The Board, together with incoming CEO Jeremias
Jansson, has initiated the recruitment process for a new CFO.
Kine Kragholm Olsen, currently Group Chief Accountant, will
assume the role of Interim CFO from February 1st, 2026.
The full announcements is available at smartcraft.com/
investor-relations/stock-exchange-notices/.
Updates from the board
As previously communicated the Board is evaluating a potential
relisting to Nasdaq Stockholm.
The evaluation of change in listing venue to Stockholm is
progressing well and approaching the latter stages in the
evaluation process.
14
2025
Q3 REPORT
Condensed
Consolidated
Financial
Statements
2025
14
Q3 REPORT
15
2025
Q3 REPORT
Amounts in NOK (thousands)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Total operating revenue
137 771
131 849
415 333
374 633
510 763
Purchase of goods and services
10 519
11 250
32 595
30 869
43 551
Payroll and related expences
55 023
54 375
166 112
144 746
198 804
Other operating expenses
23 171
21 557
69 138
60 990
83 879
Depreciation and amortization
21 636
13 271
62 390
36 012
52 465
Total operating expenses
110 349
100 453
330 235
272 618
378 699
Operating profit (loss) before financial items and tax
27 422
31 396
85 098
102 015
132 064
Financial income
1 079
4 138
7 086
19 984
21 158
Financial expenses
(1 395)
(6 835)
(6 585)
(20 369)
(19 703)
Financial income (expense), net
(315)
(2 697)
501
(385)
1 455
Profit (loss) before tax
27 107
28 699
85 599
101 630
133 519
Tax expense
3 759
6 942
12 374
21 729
27 560
Profit (loss)
23 347
21 756
73 226
79 902
105 959
Other comprehensive income
Items that will be reclassified to profit or loss:
Currency translation differences, net of tax
(7 102)
27 394
598
23 481
16 957
Total
(7 102)
27 394
598
23 481
16 957
Total comprehensive income
16 245
49 151
73 823
103 383
122 916
Consolidated Statement of Comprehensive Income
16
2025
Q3 REPORT
Amounts in NOK (thousands)
30 Sept 2025
30 Sept 2024
31 Dec 2024
Goodwill
661 206
676 487
662 299
Intangible assets
356 625
361 033
376 806
Right to use assets
29 046
30 490
35 411
Tangible Assets
4 355
4 360
4 856
Total non-current assets
1 051 231
1 072 370
1 079 372
Inventory
Other current assets
13 089
10 562
10 476
Accounts Receivable
58 930
59 778
67 611
Cash and cash equivalents
160 712
117 751
125 655
Total current assets
232 730
188 091
203 742
Total assets
1 283 961
1 260 460
1 283 114
Consolidated Statement of Financial Position
Assets
17
2025
Q3 REPORT
Amounts in NOK (thousands)
30 Sept 2025
30 Sept 2024
31 Dec 2024
Share capital
1 715
1 715
1 715
Own shares
(60)
(38)
(45)
Share premium
605 893
605 893
605 893
Retained earnings
315 064
273 908
280 193
Other components of equity
34 176
40 102
33 578
Non-controlling interests
7 966
9 486
9 486
Total equity
964 754
931 066
930 821
Non-current lease liabilities
16 857
19 199
23 281
Deferred tax liabilities
56 260
64 337
62 672
Total non-current liabilities
73 116
83 535
85 953
Deferred revenue
147 664
134 679
149 839
Current portion of lease liabilities
13 460
11 872
12 886
Accounts payable
15 960
8 800
11 760
Taxes payable
(934)
17 413
15 700
Other current liabilities
69 940
73 095
76 155
Total current liabilities
246 091
245 859
266 340
Total liabilties
319 207
329 394
352 293
Total equity and liabilities
1 283 961
1 260 460
1 283 114
Consolidated Statement of Financial Position
Equity and liabilities
18
2025
Q3 REPORT
Amounts in NOK (thousands)
Share capital
Treasury
shares
Share
premium
Other
components
of equity
Retained
earnings
Non-
controlling
interest
Total equity
Total equity 31.12.2023
1 715
(31)
605 893
16 621
214 846
4 631
843 675
Profit / (-) loss for the period
-
-
-
-
105 959
-
105 959
Other comprehensive income
-
-
-
16 957
-
-
16 957
Purchase of treasury shares
-
(14)
-
-
(40 851)
-
(40 865)
Changes in non-controlling interests
-
-
-
-
-
4 855
4 855
Other changes
-
-
-
-
239
-
239
Total equity 31.12.2024
1 715
(45)
605 893
33 578
280 193
9 486
930 821
Profit / (-) loss for the period
-
-
-
-
73 226
-
73 226
Other comprehensive income
-
-
-
598
-
-
598
Purchase of treasury shares
-
(16)
-
-
(42 766)
-
(42 782)
Changes in non-controlling interests
-
-
-
-
-
(1 520)
(1 520)
Other changes
-
2
-
-
4 411
-
4 413
Total equity 30.09.2025
1 715
(60)
605 893
34 176
315 064
7 966
964 754
Consolidated Statement of Changes in Equity
19
2025
Q3 REPORT
Amounts in NOK (thousands)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Operating activities
Profit before tax
27 107
28 699
85 599
101 630
133 519
Paid taxes
(4 581)
(4 480)
(34 405)
(26 691)
(41 251)
Net financial income
(79)
(138)
292
(1 983)
(1 989)
Gains/loss sold assets
-
38
(4)
86
75
Depreciation and amortisation
21 637
13 271
62 391
36 012
52 465
Interest received
680
602
2 026
3 727
4 781
Net cash provided from operating activities before net working
capital changes
44 764
37 990
115 899
112 780
147 600
Working capital adjustments
Changes in accounts receivable
(17 849)
3 084
9 038
15 936
7 160
Changes in deferred revenue
(2 072)
(4 545)
(3 947)
7 939
24 441
Changes in accounts payable
1 000
(17 632)
4 099
(2 673)
229
Changes in all other working capital items
10 064
15 378
(4 873)
(3 096)
(415)
Net cash provided from operating activities
35 908
34 276
120 216
130 886
179 015
Investing activities
Investments in tangible and intangible assets
(469)
(263)
(984)
(2 505)
(3 558)
Payments for acqusitions
(2 350)
-
(2 835)
(152 056)
(152 056)
Payments for software development costs
(10 259)
(14 158)
(32 708)
(35 035)
(48 664)
Net cash used in investing activities
(13 078)
(14 421)
(36 526)
(189 596)
(204 278)
Financing activities
Cash proceeds from capital increases
-
-
-
4 720
4 720
Downpayment on loan facilities
-
-
-
(7 954)
(7 954)
Interest payments
(601)
(464)
(2 318)
(1 740)
(2 792)
Repayments of lease liabilities
(3 132)
(3 014)
(9 456)
(9 221)
(12 278)
Payment of treasury shares
(6 005)
(2 695)
(42 782)
(20 847)
(40 865)
Net cash provided by (used in) financing activities
(9 737)
(6 172)
(54 556)
(35 043)
(59 170)
Net increase (decrease) in cash and cash equivalents
13 092
13 683
29 133
(93 753)
(84 432)
Cash and cash equivalents at the beginning of period*
148 195
97 064
125 655
206 024
206 024
Foreign currency effects on cash and cash equivalents
(576)
7 005
5 924
5 481
4 063
Cash and cash equivalents at end of period*
160 712
117 751
160 712
117 751
125 655
Consolidated Cash Flow Statement
* Cash and cash equivalent include restricted funds
20
2025
Q3 REPORT
Explanatory Notes to the
Consolidated Financial Statements
Note 1 Accounting policies
The interim report for the SmartCraft Group for 3rd quarter 2025
has been prepared in accordance with IAS 34 Interim Financial
Reporting. The same accounting policies and methods
for computation have been applied as in the latest annual
statement. For further information on accounting policies see
the Annual Report 2024.
Note 2 Revenue
Note 3 Earnings per share
Amounts in NOK (thousands)
Revenue
recognition
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Fixed price
Over time
123 730
114 528
366 802
321 290
438 216
Transactions
Point in time
9 799
9 540
30 720
28 369
39 425
Total recurring
133 529
124 068
397 522
349 660
477 642
Non-recurring
Point in time
4 242
7 780
17 811
24 973
33 121
Total revenue
137 771
131 849
415 333
374 633
510 763
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Profit for the year
TNOK
23 347
21 756
73 226
79 902
105 959
Profit for the year attributable to non-controlling interests
TNOK
-
-
-
-
-
Profit for the year attributable to equity holders of
SmartCraft ASA
TNOK
23 347
21 756
73 226
79 902
105 959
Average numbers of common shares, excl. Own shares
165 643 273
167 706 688
166 264 542
168 052 822
167 907 976
Earning per share
NOK
0.14
0.13
0.44
0.48
0.63
21
2025
Q3 REPORT
Alternative Performance Measures
(APMs)
The following terms are used by the Group in definitions of
APMs:
EBITDA:
Is defined as operating income before depreciation of tangible
and intangible non-current assets.
Adjusted EBITDA:
Is defined as EBITDA adjusted for special operating items that
distorts comparison, such as acquisition related expenses,
listing preparation costs and other items which are special in
nature compared to ordinary operational income or expenses.
Adjusted EBITDA margin (%):
Is defined as Adjusted EBITDA divided by sales, expressed as a
percentage.
Adjusted EBITDA – CAPEX margin (%):
Is defined as Adjusted EBITDA – R&D CAPEX divided by sales,
expressed as a percentage.
Annual Recurring Revenue (“ARR”):
Is defined as a 12 month subscription value of the Group’s cus-
tomer base at the end of the reporting period. The ARR metric
only includes fixed price subscriptions.
Recurring Revenue (%):
Is defined as subscription revenue generated over the historical
period divided by sales for the same period, expressed as a
percentage. Recurring Revenue includes both fixed price and
transaction-based subscription revenues.
Average Revenue Per Customer (“ARPC”):
Is defined as the annualized monthly total operating revenue
divided by the number of customers at the end of the month.
Churn Rate (%):
Is a measure of loss of ARR on a rolling 12-month basis, ex-
pressed as a percentage of average monthly ingoing ARR for
the same 12-month period.
22
2025
Q3 REPORT
Amounts in NOK (thousands)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Total operating revenue
137 771
131 849
415 333
374 633
510 763
Amounts in NOK (thousands)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
EBITDA
49 058
44 667
147 488
138 027
184 530
Adjustments of special items
-
2 796
2 792
5 458
5 458
Adjusted EBITDA
49 058
47 463
150 280
143 485
189 987
EBITDA-margin
35.6 %
33.9 %
35.5 %
36.8 %
36.1 %
Adjusted EBITDA-margin
35.6 %
36.0 %
36.2 %
38.3 %
37.2 %
Amounts in NOK (thousands)
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Adjusted EBITDA
49 058
47 462
150 280
143 484
189 987
Capitalized development expenses
10 259
14 158
32 708
35 035
48 664
Adjusted EBITDA - CAPEX margin
28.2 %
25.3 %
28.3 %
28.9 %
27.7 %
Q3’25
Q3’24
YTD’25
YTD’24
FY’24
Annual Recurring Revenue (ARR) (EoP)
TNOK
504 792
474 386
504 792
474 386
481 958
Recurring revenue
96.9 %
94.1 %
95.7 %
93.3 %
93.5 %
Average Revenue per Customer (ARPC)
NOK
41 059
39 713
41 224
38 219
38 848
Churn rate (R12m) (EoP)
9.6 %
8.3 %
9.6 %
8.3 %
9.2 %
23
2025
Q3 REPORT
This is
SmartCraft
NOVEMBER 2025
24
2025
Q3 REPORT
Our passion is to simplify business
for construction companies
SmartCraft’s mission is to streamline operations and free up time for
construction companies, so they can generate additional revenue
instead of spending evenings and weekends with planning, purchasing,
invoicing and documentation. This is especially true for small and medium
enterprises, but our specialized software is also used by large installation
companies, as many of the processes in the field and in the office are
the same. In the future, well-functioning and efficient processes will be
necessary for craftsmen and contractors to keep up with competition.
Our solutions are used by our customers even before they
have won a contract. As a natural part of the sales process,
our solutions enable our customers to be more efficient and
precise in their offers. Official requirements and regulations,
for example with regards to health and safety as well as
quality control, become increasingly comprehensive and end-
customers require more documentation of the work being
done. Nevertheless, the construction industry is today one of
the least digitized. We are more convinced than ever that this
will change rapidly in the years to come. Those who remain
passive and stick with their analogue processes will be left
behind.
Best-of-breed
We offer best-of-breed software. This means that our solutions
are tailormade for each of the niches we focus on. The best
solution for a plumber is not necessarily ideal for a carpenter
– and electricians have their specific requirements too. Since
we were founded in 1987, we have followed this philosophy,
which means that we over time have built deep insight and
competency regarding the business models and workflows of
our customers. At the same time, we increasingly collaborate
across the group and solutions when it comes to customer
insight, product and technology, development and sales. Our
goal is always to provide the most efficient and productive
solutions to our customers. We expect to invest
8-9 percent of our revenue in product and technology
development in 2025 to further increase our potential to
increase growth.
The craftsman’s office is in the car or outside on a worksite.
Our solutions are seamlessly available on smartphones and
tablets for field workers and on rich web clients at the desktop
for people in the office. Hence, SmartCraft users can use digital
tools throughout the day in every step of the process. All the
way from producing a quotation, project planning and work-
order to project documentation, salaries and invoicing.
25
2025
Q3 REPORT
Massive market and low
share-of-wallet
In our existing markets there are about 720 000 companies in
the construction industry. As a market leader we have over 13
800 customers, showcasing the low market penetration. Most
of these are SME companies where our solutions are a great fit.
Calculations show that the potential market size is above NOK
50 billion* in the Nordics and the UK in 2024.
This market is expected to grow and we are deeply committed
to remaining a leading player and a driving force in the industry
going forward. It is essential for us to ensure that the purchase
decision for new customers is easy. Our solutions are cloud
based and easy to implement. Looking at the cost per month
for a new SmartCraft customer, the share-of-wallet is very low
compared to the total cost base. For a customer, the return on
investment is immense.
Strong growth drivers
for digitalisation
Lack of skilled workers
•
Need for skilled construction workers globally
•
Aging workforce and lack of recruitment
Digitally maturing users and software
•
Apps and SaaS solutions drive adoption
•
Younger more digital workforce
Increasing demand for detailed digital
documentation
•
Regulatory offices
•
Consumers
Long tail of service needs in private and
public sector
•
Increasing aging buildings in need of renovation
•
Services include renovation, upgrades and
maintenance of existing buildings
*Analysis by SmartCraft, August 2024. Compounded on basis of ARPC, penetration and addressable companies (ADL model, 2021)
26
2025
Q3 REPORT
Attractive business model
The story of SmartCraft has for many years been the story of
profitable growth. We love our cloud-based Software-as-a-
Service model for many reasons. One being the fact that the
cost of adding one additional customer or user is minimal. This,
combined with an efficient sales and marketing organization
and a gross margin above 90 percent, gives us a strong
business model. We are guiding our revenue to grow by 15-20
percent organically in the medium term and expect a growing
EBITDA margin due to the scalability of the business. We are
continuously investing in product development to secure future
growth, but in the profitable growth mindset we are focusing
on maintaining a high margin before any capitalization is made.
Another strength of our business model is the long revenue
visibility and hence low risk related to our cash flows. Once
onboard, our customers stay with us for many years and
historically we have a consistent low annual churn.
With our flexible business model we generate cash every
quarter and every year.
High level of cash generation from operating activities, MNOK
Q1’22
Q2’22
Q3’22
Q4’22
58.7
9.8
14.9
28.6
Q1’23
Q2’23
Q3’23
Q4’23
73.1
7.3*
21.6
31.8
Q1’24
Q2’24
Q3’24
Q4’24
73.5
24.6
34.3
48.2
Q1’25
Q2’25
Q3’25
54.5
29.7
35.9
* Including earnout payment of NOK 17.6 million previously classified as investing activity (reclassified in Annual report 2023).
27
2025
Q3 REPORT
High quality of earnings
We strongly believe in making business as easy as possible
for our customers and that SmartCraft employees focusing
on what is mission critical for our customers; to have business
control by having a good digital overview of people, material
and documentation. In the third quarter 2025, 97 percent of
our revenue was recurring. The high level of recurring revenue
creates a solid, predictable financial profile with low risk.
The high level of recurring revenue is a result of our strategy
Clear strategy to increase recurring revenue and financial visibility
to minimize non-recurring revenue like setup and installation
fees, consulting fees, training fees and support fees, as we
believe good software should be easy to use with minimum
effort. We also believe that hardware and 3rd party software
is best handled by the vendors of these and that SmartCraft
employees should focus on making great mission critical
solutions for our customers. As a result of this strategy, we
have high earnings quality with good earnings visibility and low
operational risk.
Revenue sources we avoid
Actions to secure high recurring
revenue
Short-term financial effects
Strategic benefit
Setup/installation fees
Including one-time revenue in
subscription fee
Reduced revenue
Lower margin
• Low threshold to become a
customer
• Increased recurring revenue
• Higher margin
• High financial visibility
• High quality of earnings
• Low-risk business model
Consulting fees
Make easy to use solutions
Reduced revenue
Higher margin
Training fees
Make user-friendly and intuitive
solutions
Support fees
Provide solutions requiring minimum
of support
Hardware
Customers buy directly from hardware
vendor
3rd party software
Customers buy directly from 3rd party
software vendor
“Rule of 90”
The beauty of software – in particular with a SaaS model - is
the ability to achieve economies of scale. SmartCraft has both
recurring revenue and a gross profit margin above 90 percent.
We have an efficient marketing and sales organization enabling
sales and upsales at a relatively low cost. Low CAC combined
with little efforts to retain a customer after onboarding and
low churn, gives us a very healthy cash contribution from each
incremental customer we win.
Customer
value
COGS
Upsell
Customer
care
Cash
contribution
Scalable business model provides strong cash
contribution per new customer
27
28
2025
Q3 REPORT
Focus on electro and plumbing companies in the
renovation sector
SmartCraft focuses mainly on small and medium enterprises
(SMEs) that work with renovation, upgrades, services and
maintenance of existing buildings. Additionally, we have a
high concentration of electrician and plumbing companies as
customers. Due to energy savings and the green shift these
contractors are very much in demand today and in the future.
Hence, our strategic position makes SmartCraft less volatile in a
challenging market.
SmartCraft operates in a largely underpenetrated
market, where most SMEs lack effective digital solutions
to comprehensively manage people, materials and
documentation in in their projects, which is crucial for
enhancing revenue and profit margin. This represents a
significant untapped potential for both the industry and
SmartCraft.
Segment / Focus
SME concentration of customer
base
Electro / HVAC concentration of
customer base
New Build as main business for
customer base
Norway
High
High
Low
Sweden
High
High
Low
Finland
Medium
Low
High
UK
Low
Low
High
2025
REPORT Q3
Significant growth ambitions
29
Looking ahead, we continue to follow our strategy of profita-
ble organic growth and M&A driven consolidation. We have a
strong financial foundation following the successful listing on
Oslo Børs in 2021, providing a solid balance sheet and a broad,
international investor base. Hence, our organic growth strategy
is fully funded. Additionally, with a high cash conversion we are
constantly increasing our M&A capabilities.
Our primary focus going forward is organic growth in the
Nordics and the UK through upselling to existing customers, by
winning new customers and by cross selling on our customer
bases. Secondly, we are pursuing M&A opportunities both in
existing and new geographies and are in dialogue with several
companies. At the same time, we are patient. Capital discipline
has high priority and we will only pursue the right acquisition
target at the right price.
Organic growth:
Further optimization of
marketing and sales
Win new customers
Upsell to existing customers
Cross sell on existing portfolio
M&A in existing and
new geographies
Proven M&A track record
Detailed M&A methodology
Active M&A pipeline
29
30
2025
Q3 REPORT
