Welcome to ContextVision. Today we publish our second quarter result, and I'm happy to be on this webcast together with Richard, our CFO.
Thank you.
Myself, Gerald, and we're going to give you a short overview of the second quarter and the first half year. If we look at the agenda, it's gonna be a short meeting. A quick business update, we'll look into the financial numbers, and close with a summary and outlook for the rest of the year, so let's jump right into the summary of the second quarter. In summary, the second quarter has shown a couple of highlights, namely, we have signed new customers, we're continuing our strategic investments, both into our Image Quality as well as in our Data Quality business, and we're making good progress in our POCUS efforts. I'll come back to those topics in a minute. Financially, second quarter numbers showed SEK 31.7 million in net sales, and an EBITDA of SEK 9 million.
If we adjust for the investments into POCUS of SEK 1.6 million in the second quarter, we land at an EBITDA margin of 28.4%. Operating results, likewise, came in with SEK 6.7 million and a margin of 21.1%. For the first half year, this means we are in line with the same period in the previous year. SEK 66.4 million was the result for the first and second quarter in a row. Adjusted EBITDA came in at SEK 23 million, and likewise, adjusted for investments in POCUS for Q1 and Q2, EBITDA margin lands at 35%. Richard, you're going to go into those details in a minute, so let's move to the business overview, and let's start with a bit of a reflection on the development over the previous quarters.
So rolling 12 net sales is trailing now at SEK 132 million. So this is not a surprise, with the first two quarters being stable at SEK 66 million. We see a very stable rolling 12 over the previous quarters, and that is also a good indication for the coming quarters. Now, if we look at the bottom line, EBITDA, you see those two key strategic decisions that we're working through with ContextVision. Number one is the spin-off of our digital pathology business earlier in 2022, and then the investments both into our ongoing image quality business as well as the POCUS business. Now, keep in mind that the EBITDA margin, now trailing at 35%, is adjusted for investments into POCUS.
Meaning, that, you clearly see the investments that we, at the same time, have in our core business to expand our portfolio, in that respect and prepare for growth. So let's look into our operational highlights for the second quarter. We have signed new customers, both in Asia as well as in North America. Now, with those contracts, we have a good opportunity to expand our footprint, especially in the veterinary market. Now, if you compare our development to previous year, second quarter, we have seen a slight reduction in net sales. Let me emphasize, there is no churn. We have not seen customers or contract cancellations. However, regular fluctuations of bulk purchases, market seasonality, as well as market share fluctuations within our customers, clearly show effect. The market in general remains stable with 3% to 4% CAGR.
So take away currency headwinds, take away NRE peaks, take away fluctuations and seasonality, we show good organic growth in our recurring license revenue business. Likewise, our cash position in the second quarter was good and gives us a stable position to continue investing into our image quality as well as into our data quality business. Let's go a little deeper into what's happening on the POCUS side. Keep in mind, POCUS is the first effort into our data quality business. In POCUS, we're now entering early stages of development for an entire new product pipeline of organ-specific applications. That's key, and it's the way forward for us, and we have also shared a separate press release before summer. We're now having a operational team, development team in place, operational.
We're making progress in signing a partnership agreement with a renowned university, as well as a medical device manufacturer. Now, for those of you who followed in Q2 our Q1 webcast, we had already indicated that we're close to signing an agreement. Meanwhile, we have decided to not sign a letter of intent, but jump right into contract negotiations because of the good progress, so stay tuned for those announcements to come, and let me just mention financially before I hand over to Richard that we're holding our expectation of investing around 10% into the POCUS endeavor, and we're still in the ramp-up phase, if you see the investments that we've done in Q1 and Q2. Now, having that said, I'll hand over to you, Richard.
Okay. Thank you, Gerald. Looking then into our Q2 sales development, net sales decreased by 6% compared to Q2 last year. This was mainly due to large orders in Q1 affecting this quarter, and negative FX of 3.5% compared to last year, instead of a positive FX in 2023. The comparable quarter last year had exceptionally good conditions. However, we see positive sales tendencies with new customers, but it will take a while until we see the effect of this. The sales for the first six months are nevertheless in line with last year. Looking forward this year, as mentioned last quarter, we could still see market dynamics affecting some of our customers, and thereby us.
Looking at Q2 profitability, our EBITDA, adjusted for investments in POCUS, came in at SEK 9 million , with an Adjusted EBITDA margin of 28.4%. The lower profitability is affected by higher personnel cost, administrative costs, and negative SEK 0.6 million in transactional FX, which was actually positive SEK 0.4 million in 2023. Also, there was no capitalization this quarter. Compared to last year, we're now gearing up for expansion into Data Quality in POCUS, as well as to increase the frequency of product releases and sales in Image Quality. We thereby expect our costs in general to be at a higher level going forward compared to 2023. Now, looking at our cash flow in Q2. We have a cash flow of SEK 11.4 million , meaning we strengthen our cash position from SEK 65 million to SEK 76 million this quarter.
Last year, we had a dividend of SEK 23.2 million , which was divided into two tranches during the year in Q2 and Q4, respectively. To sum up, we are in a good cash position, and we continue to invest in both data quality and image quality, and in terms of data quality, that includes POCUS.
Thanks, Richard, for the deeper look into the financial results of the second quarter and the first half year. Now, let's summarize this webcast. Important to keep in mind that we're on track executing our growth plan, both in our existing image quality business, where we have won several new customers, as well as in our data quality business, where we're ramping up the product development of a new product pipeline for our POCUS business, and we're about to sign a partnership contract with a renowned university and a medical device manufacturer. Sales-wise, we have had a stable first half year, and so do we look ahead.
We've won several new customers this quarter, both in the U.S. as well as in Asia, and this gives us a good opportunity, together with a good cash position and good cash flow, to continue investing into our business. Thanks for your attention, and see you next time.
Thank you.