Welcome to Huddlestock's Q4 2025 Quarterly Presentation. My name is Leif Arnold Thomas, and I am the Group CEO of Huddlestock Fintech. I have with me our Group Sabine Mærky, and also our Chairman, Øyvind Hovland, that will be available at the Q&A session at the last of this presentation. The presentation will in total be about 30 minutes. The plan is to use the first 25 minutes with a presentation and then spend the last 5 minutes with Q&As. It is a Q&A button, at least it shall be, where you can type in questions that we will go through at the end of the presentation.
As always, if you have questions during the year between quarterly presentations, please just call me, call Sabine, send email, if you have the questions that you would like us to answer. With that as a start, let the show begin. Let's see if I can have the full screen. Yes. As always, I think it is a good idea to ramp up a little bit about what are the main deliveries, milestones, or highlights that has been delivered the last quarter. Since this investment as a service, IaaS area is important for us, I'm happy to announce that we have been able to have a soft launch of the cryptocurrency trades on the Gigabroker platform in December.
That was definitely a milestone on our way to a full launch. Also the LOI with the MFN, in last quarter, that was signed in February, was also another significant milestone for us, meaning that we are now on our road to more and more customers in this exciting part of Europe. We have, as part of our plan and development, going forward, it is important for us to have more and more products and services available on our platform, and also to have a solution that is as relevant and good as many potential customers as possible.
During Q4, we received a MiCA license, which makes it possible for us to offer crypto trades, which definitely is important these days. We expect that also going forward. We signed a distribution agreement with a company called MFN. I will come back to that, meaning that their product is then available for our customers through our platform. When it comes to the Gigabroker project, which is of course of very strategic importance, it is also an important part of that journey that I will come back to, with us being able to offer also a white label solution to other customers. We have a consultancy business, Visigon, where we, the last quarter, announced a target for 2028 of NOK 100 million.
We stand by that objective also after this quarter, and are very happy to see that we both have been able to secure a contract with a large customer in Sweden, which is not based on time and material, but on delivery of capability and knowledge. As part of the growth strategy in Visigon, to attract customers outside the Nordics is important, and I'm also very happy to announce that during Q4 and also into this quarter, of course, we see a lot of promising sales processes.
Last but not least, following the big restructuring we did last year, we find ourselves now in a place with a much slimmer organization, a lower cost base, and we also see that these costs we have are still expected to go further down into 2026. Short repetition about the Huddlestock. We are a Norwegian company. We are listed on the Euronext Growth in Oslo. We have two main business areas. That's the consulting business area, which is Visigon, which is the company name, and we have this other area that is Investment-as-a-Service, IaaS area. When it comes to the consulting business, the revenues are coming from two main paths.
From historical perspective, it has been very much about time and material and project-based revenues, what we are now turning it into, and an important part of our strategy, is to turn it more into more managed services. Meaning that revenues will be more steady, they will be more recurring, and we will do not see that managed shift during the year based on seasons, in the same way as you have when you just have this project deliveries. That is a good and steady business, and we are working very hard on that, and I will come back to that later on as well. Of course, the Investment-as-a-Service, trading license and solutions, that is where we really see the scaling potential.
We also see now that we have big opportunities in the European landscape with already two customers signed and a lot of also interesting and very exciting and promising processes on new prospects going forward. On the Investment-as-a-Service area, where our value proposition is to offer a combination of licenses to do trading in combination with technology. We are an enabler for our customers, here called B2B partners, to offer products and services to their customers in a very cost-efficient and easy way. We have last year, we signed Gigabroker as the first customer in the European market and in Germany, and we signed up the second customer, Modern Finance Nation, in February this year.
We see that this is an attractive model, because then our customers, our B2B partners, are not required to do heavy investments in their own technology. They are not being forced to have their own licenses. They can come to Huddlestock, and we will fix it all, to say it a little bit easy. Our ambition now is, of course, to grow this system on both parts. We have more and more partners on the left-hand side, which is the ingredients, together with the license that we are able to offer, and of course, to grow the customer base on the, on the right side. Customer number two, Modern Finance Nation. This is a very important and interesting customer for us.
Of course, number one, it's always good to get the proof that our value proposition is interesting and exciting for more than only one customer. That's for sure. Also, this is an interesting customer because it also demonstrates that our value proposition is relevant, not only for the players that would like to offer a trading platform, but also players that are thinking in the modern way of how to offer modern trading, saving solutions to their audience. Modern Finance Nation is a new established German provider, and their focus is on the next generation investors in Germany.
Why that is important is if you look at, and if you look at the statistics on how the German saving market is developing, it's very clear that the growth of new investors are coming from the young ones. Having a product targeting to the young investors is definitely the place you should be in order to grow your business. You also see that the strategy of how they are going to sell this product is much more about the communities and social channels than traditional sales. Their business model is much more about also to have re-recurring long-term investments than short-term trading. The product, Dream Booster, that's a brand new name in the German market, and it is delivered under our own in Huddlestock regulatory infrastructure.
Now we can see the combination of our licenses with their product together makes it possible for Modern Finance Nation to go in the market very quickly, which they would not have been able to do if they should do everything alone. We and they expect, and they have planned a launch in the second half of 2026. Revenues is driven by the number of customers on the platform. We cannot, of course, disclose the revenue potential, but they should hit quite well on a trend now in the European market, where investors are very much shifting from traditional savings on bank account towards more simplified investment solutions.
For us, of course, this is important to see how we can also capitalize and get more recurring revenues on our infrastructure base. I have mentioned it before, I think it is worth to spend a few minutes on this. You look at Huddlestock and our strategy in the European market, is to offer a white label solution to as many customers as possible. Come to Huddlestock, it shall be possible to get a solution, technical solution, a trading platform, license, what you need within short time and with reasonable cost. Means that it is extremely important for us, and has always been the strategy, to have a so-called white label solution that we can offer to the market.
If someone thinks that our white label standard solution is good enough, well, the time is quite short from a signature until you are up and running. We also see that probably the most will have some requirements for adjustments that they will need, and they will go through before they are live. The process we have with Gigabroker is the first customer, real customer, that we are now working on the basic functionalities in the white label solution. Of course, they have some also some needs that will need to be taken care of before they go live.
From our perspective, from Huddlestock's perspective, now to say that we from April have a white label solution, trading solution live, is very important for us, because then we can start marketing and go out to a much larger audience as well. We also have confirmed that we have partners that would like also to contribute with the marketing and PR of that solution. This is, from a strategic point of view, a very important delivery. With the soft launch of the crypto platform in December, as a start, the very important launch of our own white label trading solution in April. The next thing is, that is important for us is, of course, the Gigabroker that is being launched in June.
We will already from April start our big presence, as you can see on the right-hand side, being available also on one of the biggest European fintech festivals in Berlin. Now this is when it will be start happening. This is very, very exciting if you ask me. We have some questions and this Gigabroker, how what could it be of potential? We know that Gigabroker has expressed that they have an objective of reaching a number 3 position within 3 years. We know they have a customer base in AVL with 65,000 customers. Of course, will be offered this new solution.
If you then look at the statistics and who are number three in Germany then? Well, we have found, or it is Smartbroker+ . Smartbroker+ , last official statistics, said that they have 222,000 end customers on their platform. Okay, then we know that. Then, we know the revenues, and we know the number of customers of these three largest. Easy calculation would mean that then typical end customer would generate between EUR 40-65 per year in revenues. Then that would mean that some estimate of a total annual in-income of that base would be between NOK 100 million-NOK 116 million.
That is to just use figures that is out there and to combine it together, it gives some idea of where this could go. The revenues generated from this is or the profit is split between Gigabroker and Huddlestock. This is a large potential. You can also see it's a big potential if you look at the number two and of course, number one. Visigon had a strong Q4. The revenues was up 32% compared to Q3.
Successfully managed to move some of the existing co-contracts over to the new managed services contract, which will give more predictable revenues, more recurring revenues, and not the same seasonal adjustments as before, and that strategy will continue. I am also happy to see that we have many very promising and good sales processes outside the Nordic region, which is, of course, very important in order to grow and reach our ambitions for 2028. So, when it comes to Visigon, good speed going out of 2025, and I am confident that we will have a good way into. We will have a good way into 2026 as well. then Sabine Mærky?`
Yes. Thank you. I'm going to switch on my camera. To the figures, the financial part here of the presentation. 2025 has been a transitional year for Huddlestock, with a lot of impacts on the reported figures. That means if we look, if we compare the fourth quarter of last year to Q4 in 25, now we are looking at a very different company. After the reshaping that has been executed in the second and the third quarter, the fourth quarter in 25 was actually the Q1 without any divested units included. The revenue here that we look at is mainly driven by Visigon. On the cost side, we still had a couple of extraordinary expenses related to the transactions, of course.
That's why we have the adjusted figures on the left-hand side here for the Q4. If we look at them, then we see that we have decreased both personal and other operating costs by around NOK 8 million, and we end up with an EBITDA that has improved by around 8%. Now in 2026, we will, in addition, gain effect from further cost reductions that we've been working on in the last months. That means that going forward now into 2026, we will find ourselves at a more sustainable cost level and absolutely in line with our asset-light strategy. With a positive top-line development throughout 2026, we are now also moving finally into the direction we were aiming for. Moving on to the cash flow development here in the fourth quarter in 2025.
We've started with the quarter with NOK 2 million in cash, we had a cash burn from operations that was mainly driven by a new Huddlestock, so group functions and Germany. Also, of course, as I already said, included extraordinary costs following the divestments made in 25. In investments and financing, we see the net effect actually of sold Done.ai shares and the repayment of loans together, and in addition, with also due to financial costs. This altogether left us with a cash of NOK 5 million by the end of December, if we then add on the remaining Done.ai shares and an available overdraft facility of NOK 11 million, we are now sitting with a cash position of NOK 16 million in total.
What's important to say here as well is the board of directors is confident with the capital situation we are in now, and we have also access to bridge financing when needed. Thanks.
Thank you, Sabine. We have been through Q4 and the highlights, as always, it's time to look forward. We have two business areas that we now are going to work focused extremely on. We are finished with the divestments. We have done cleanups going forward from Q4 and Q1 this year. This is the new Huddlestock, where we are only focusing on scaling the European Investment-as-a-Service platform and of course, to reach the objectives for Visigon in 2028. Going into 2026, it is a very good start for us to be able to launch and market our own white label solution already from April. That is a big milestone for us, and we will do a lot out of that.
Of course, our first user, real customer on the solution, Gigabroker, will be launched in June. That is definitely important also from a revenue perspective, because that is the time when the revenues expected, is expected to start. To have strong focus still on sales is definitely important. We are really happy that we have been able to sign up the customer number two, but we would like to have the customer number two, number three, and number four, and number five, et cetera, et cetera, et cetera. We know that some of these sales processes or many sales processes take some time because this is a part of a regulatory industry. It's not just to sign the day you...
the first day you meet a prospect, that is why to have an ongoing process, working very good with prospects and many in parallel is important, so that we can see that we are also expanding the universe of customers during 2036. As you have seen, we have extremely focused on cost and on sales, and we have an ambition to turn the business in EOS cash positive within 2026. Investment-as-a-Service, very good start, good potential, good speed, and now only focus on that. All divested companies and history is now gone. The Visigon business. We see that the end of 25 was a good start for 26 when it comes to Visigon.
We have good processes, sales processes outside the Nordics. We confirm once more that we are targeting an objective of NOK 100 million in 2028, with an EBITDA margin of at least 20%. This growth is planned to be financed by their own operational cash flow. I think this is perhaps some of the most exciting starting points for a new year that we could have. This is, in my view, a very good start for 2026 and going forward. We are at the Q&A session.
We have one question here.
That, I would like to ask Øyvind Hovland to comment on. The majority of the Done.ai shares appear to have been realized. Can you clarify when these shares were sold and at what average price?
Yes. Um, hello, everybody. Uh, I just want to first say that, uh, it's really, uh, exciting, uh, times we are going into, and, and, And, uh, we are really looking forward, uh, to the, to the launch of, uh, of our platform in, in Germany. Um, when it comes to, to the done, uh, shares, uh, uh, we have always looked at the done shares as an asset that we, uh, will use to fund our and, and, uh, fund our operations in, uh, in, uh, in Germany. Um, and, uh, so, uh, the board of directors, uh, decided, uh, that, uh, uh, instead of trying to speculate in the done shares, we, uh, we have been selling, uh, the shares, uh, steadily over a long period of time. Um, so, uh, so the share price is like an average of, uh, of that, uh, time period.
When it comes to the average price, I don't know yet. We still have some shares left, so that we will need to come back to.
Thanks. We have another question. Can you give an update on the third LOI, which was expected early 2026, Leif Arnold ?
No. The reason is because we have different processes in parallel. As I mentioned, when it came to all the such contracts, some of them are more dependent on legal and requirements than others, and so on. I cannot say something specific about the third contract, but I can confirm that we have several processes in parallel. That is what I can say.
Yeah, that was all the questions I can see for the time being. Please come forward if you had another one. I think we are closing. We're getting close to the end.
Okay. As a concluding remark, I always say thank you very much for being shareholders in Huddlestock, to support us. I'm, as I said, that's important for me to say that this is very, a very interesting time, to say it so. Where we see a lot of exciting opportunities going forward. Now it's about to deliver, and I'm very happy to see that we are now the Huddlestock 2.0, a slim, effective, organization that are able to deliver on the very clear goals that we have set. With that, I would say thank you very much for participating, and please reach out if you have questions to us during the year. Okay.
Thank you.
Thank you.
Thank you.