Good morning, and welcome to this Q2 presentation by StrongPoint. My name is Jacob Tveraabak, and I'm the CEO of StrongPoint. With me to present the Q2 results, I have Marius Drefvelin, our CFO. In today's session, I will share highlights from our second quarter. I'll provide a short overview of StrongPoint, in particular for the convenience of those less familiar with us. I will then move on to explain some of the exciting customer success stories from this quarter before handing over to Marius. After Marius's review of our financials for Q2, I will round off this session with outlook and some concluding remarks. First out, headlines. We had a flat top-line development in our second quarter compared to same quarter last year. In our second quarter, we experienced a 2% revenue decline. Recurring revenue on a 12-month rolling basis was also down by 2%.
EBITDA reported was NOK 5 million compared to NOK 7 million last year. It should be said, however, that in Q2 this year, we did incur severance pay of close to NOK 4 million related to personal reductions as we continuously seek to drive internal efficiency. Hence, adjusting for this, EBITDA is closer to NOK 9 million on an adjusted basis for this quarter. Cash flow from operations was NOK 49 million in the quarter, up from NOK 20 million last year, principally driven from changes in working capital. With regards to customer success stories this quarter, we landed our first major VusionGroup contract, which is a big deal for us. This is the first large-scale electronic shelf label or ESL, which I'll say for the remainder of the presentation, contract with StrongPoint together with VusionGroup, since we took the initiative to change our ESL partner last year.
The EUR 8 million contract is with Coop Estonia. We have also landed new out-of-store projects in both Norway and the U.K. in the quarter. Lastly, although not strictly speaking in the quarter, but on July 3, we announced our first order picking customer in the U.S. with the highly respectable or respected Meijer, a major regional grocery retailer in the Midwest. This is a major breakthrough, which I will dive more into later in today's presentation. Before doing that, allow me to provide a brief explanation of StrongPoint as a company. StrongPoint is a technology company focused on serving grocery retailers with efficiency saving software and products. We have an annual revenue of around NOK 1.3 billion, NOK 1.4 billion, with around a quarter of that being recurring revenue. We focus on grocery retail more than general retail itself.
It is a resilient business where our belief is that if you can serve grocery retailers, you can serve any retailer. Today, more than 80% of our revenue comes from grocery retailers. We have around 500 employees across Europe, and our software solutions are developed in-house by our own development team. In short, StrongPoint's purpose is to make grocery retailers more efficient and sustainable. What about our technology solutions more concretely then? Well, we help grocery retailers tackle five key operational challenges while unlocking strategic opportunities from scaling e-commerce and digitalizing the store to using AI to reduce theft. Our offering solves the challenges and unlocks the opportunities within e-commerce, theft and shrinkage, store efficiency, pricing and promotion, and cash handling. Our portfolio solutions include software and hardware, of which approximately half is third-party solutions and half is our own solutions and IP.
That was briefly about our technology solutions. Where do we as StrongPoint operate? We have nine core countries which we focus on. These countries are in markets like the Nordics, the Baltics, Spain, and the U.K. and Ireland. These are countries where we have our own teams on the ground managing the entire value chain, from service to installation, to service, to support. Why is that? Well, it's because that way we can build deeper customer relations, customer intimacy, as we talk a lot about, and seize a larger revenue share. However, we are not limited to nine countries. We serve grocery retailers in over 20 countries with support from our partner network. Coming back to our second quarter and customer success stories. I want to point out two of our customer success stories in the second quarter and one that just arrived outside the quarter.
Firstly, Coop Estonia. Coop Estonia is the largest grocery retailer in Estonia, with approximately 23% market share. It is also a long-standing, StrongPoint customer. We have been serving Coop Estonia for over 10 years, and they apply a wide variety of our solutions, including self-checkouts, self-scanning, and Vensafe. Coop Estonia has also chosen StrongPoint and Vusion as their combined exclusive ESL partner. This is a significant step as it signifies the first major Vusion project following the launch of our multifaceted partnership that came into effect just over a year ago, at the end of June 2025. Almost exactly a year ago. We recognize that shifting from one ESL partner to another is causing a loss in financial contribution from our former ESL partner. Marius will talk more about exactly that. However, we are convinced that the shift is the right one.
This major agreement with Coop Estonia is the first with Vusion as our partner, certainly not the last. Secondly, AutoStore automation projects in the U.K. and Norway. In the second quarter, we announced two AutoStore installation projects for leading retailers in U.K. and Norway respectively. These are projects for the traditional AutoStore automation solution, both are to support their e-commerce fulfillment processes. The larger of the two projects is in the U.K., again, underscores our U.K.'s business continued transformation, building on its shop fitting routes from the ALS acquisition into becoming a provider of technology solutions, while also highlighting the spillover effects of our focus on grocery retail into other retail sectors, in this case, the DIY sector. Thirdly, although this was, strictly speaking, just outside Q3, it is such a big deal, we want to talk about it here as well.
Namely our first agreement in the U.S. for e-commerce order picking. An integral part of our strategy is to dominate, yes, I did say dominate grocery in-store fulfillment with our order picking solution. In 2024, we had a major breakthrough with our win with Sainsbury's, the second-largest grocery retailer in the U.K. Since then, we have been adding on or been chosen by several other leading grocery retailers in Europe and even as far away as New Zealand. Now we can say we have made a breakthrough in the U.S., the largest grocery retail market in the Western world. That breakthrough is not just with anyone, with Meijer. It is worth understanding the American grocery retail landscape a bit more. This is a market that has, in essence, two levels: a national level and a regional or state level.
I think most of you would know the two most known major players on a national basis, namely Walmart and Kroger, then there are regional or statewide grocery retailers. Meijer is one of the most prestigious regional grocery retailers and has operations across six states and over 500 stores. Just to put their operations in perspective, Meijer's turnover is close to the same size as the entire Norwegian grocery market. Still, there are around 15 larger national and regional grocery chains in the U.S., and dozens of same or similar-sized grocery chains as Meijer. In short, the U.S. market is big. What is particularly important to note is that our solution will be used to fulfill all of Meijer's in-store e-commerce orders. I can assure you that Meijer went through an extremely thorough evaluation of the global market for e-commerce software providers.
They decided we are the best. This is the perfect testimony of our solution, and we look forward to supporting our new American customer and continue our venture into the U.S. I wanted to also provide an update on two of our strategic projects. Firstly, our order picking partnership with Sainsbury's. As earlier shared, the first Sainsbury's stores with our order picking solution went live in Q3 2024. At the end of this quarter, our solution was operational in a double digit number of stores, which admittedly is fewer than we originally anticipated. A consequence, we have agreed with the customer for a temporary reduction in the order volume commitment versus what was previously agreed at the start of the contract. This is a large and complex project. It has proven to require additional work from both parties in order to ensure a smooth integration, launch, and adaptation.
Our operational teams are working closely together, testing new features and developing the solution further according to the needs of the customer. This is continuing into Q3 to ensure a successful rollout and a return to the initial agreed-upon order volume commitment. Regarding CashGuard Connect. CashGuard Connect is a fully closed-loop cash management solution. This means end consumers are able to pay with cash at the manned or unmanned tills. The grocery retailer will never have to touch banknotes again. This means a lot more efficient cash handling and operational efficiency for the grocery retailer and increased safety for their staff and customers. We're still developing the solution. That is progressing well. We're doing large-scale testing. We are proud to say we have signed a new pilot agreement with an additional Spanish grocery retailer. Regards to legal proceedings, these are going well.
These are legal proceedings to secure the exclusive rights to the IP of the solution. Although not yet concluded, we remain confident to secure these. I'll hand over to Marius, our CFO, to share more details on our financial performance. Marius?
Thank you, Jacob. I will now go through the key financials for the second quarter this year. Starting with revenue. The Q2 revenue decreased by 2% to NOK 342 million. We had 15% growth in our international operations, led by the U.K. with 25% growth. This is driven by continued growth in AutoStore projects, Vusion ESL installations, and shop fitting. In addition, Spain had a solid growth of 35% due to Vusion ESL product sales. Finally, there was an 8% growth in the Baltics. We are happy with the revenue growth in our international markets. However, this growth was offset by a 22% decline in the Nordic markets, mainly due to lower ESL revenue. This includes reduced hardware sales, as well as a reduction in service and license revenue from our former ESL partner.
Part of this decrease in the Nordics was mitigated by an increase in Vensafe and Scales deliveries during the quarter. Continuing on to recurring revenue 12 months rolling, this decreased by 2% to NOK 372 million compared to Q2 last year. In this, there are three key developments. First, there was a 6% growth in service agreements. This includes our own solutions, third-party solutions, and related spare parts. Second, there was a reduction of NOK 20 million or 40% year-on-year in license and service revenue from our former ESL partner, as Jacob just mentioned. Third, we have agreed to a temporary reduction in volume commitment on the Sainsbury's order picking, also leading to a reduction in license revenue. It is our top priority to ensure that this rollout becomes a success. If we move on to EBITDA, this ended at NOK 5 million compared to NOK 7 million last year.
Also as Jacob mentioned, the Q2 EBITDA this year includes severance costs of NOK 4 million, leading to a pro forma EBITDA of NOK 9 million, while also providing the basis of a lower cost base going forward. The revenue growth in our international segment, as well as lower costs in our development division, contributed to improved profitability. While these improvements were offset by reduced profitability in the Nordics due to the revenue decline that I talked about. We continue to expect fluctuations between the quarters, but from an overall perspective, over the last two years, as we can see here, we are gradually improving. These were the key drivers of the EBITDA for this quarter. Let's look at the cash flow movements. We started the year with NOK 99 million in cash and ended Q2 with NOK 98 million.
This includes a positive contribution from the operating result of NOK 15 million and positive effect of NOK 38 million from working capital, which I will address shortly. We had CapEx of NOK 14 million relating to our CashGuard Connect project in Spain and our own POS solution development in the Baltics. Other cash outflows include premises payment under IFRS 16 of NOK 16 million and interest payments of NOK 8 million. Let's move further into the key components of the working capital development. Overall for the year, working capital decreased by NOK 38 million- NOK 55 million at the end of Q2. This is due to a positive impact on accounts payable and inventory. The inventory reduction mainly relates to grocery lockers and shop fitting. To conclude on the financial part, we will look at the development in net interest-bearing debt.
During the second quarter, the net interest-bearing debt decreased from NOK 91 million to NOK 57 million, stemming from the reduction in working capital. Disposable funds were NOK 98 million at the end of this quarter, up from NOK 68 million in Q1. Finally, the equity ratio remained stable at 45%, well above our equity covenant of 30%. With this, I will hand it back to Jacob for some final remarks.
Thank you, Marius. Let's see if we get this right. Now, outlook. I would start off by repeating that we do not provide short-term guidance. What I can say, though, is that our path towards stable and sustainable profitability will not always be a straight line, as projects delivery vary and fluctuations between quarter are to be expected. Now, our priority remains building ever stronger relationships with our customers as we focus on customer intimacy as our North Star. We remain focused on growing internationally, particularly through our global SaaS e-commerce opportunities. At the same time, we know it is equally important to strengthen our traditional Nordic and Baltic markets. Both will play an important role in our future growth.
That said, in order to increase our financial results in the near term, we have identified a set of cost improvement initiatives that we will be pushing over the coming quarters, including optimizing administration and IT costs and improving productivity and support and development organizations. At the same time, we must have full focus on delivering successful implementation of signed e-commerce order picking agreements to realize the projected recurring revenue and subsequent bottom line. This is the case with Sainsbury's, Sonae MC, Iceland, and now also Meijer. Looking further ahead, we remain firm in our belief that grocery retailers will continue to invest in technology. That is positive for StrongPoint. The continued interest in our solutions, and the confidence our customers continue to give us, provides me with confidence in StrongPoint's long-term prospects. Our long-term ambition remains healthy revenue growth and an EBITDA margin above 10%.
As for next presentation, we have our Q3 presentation on October 28th. For any questions related to investor relations, please contact Marius directly. His contact details are shown on the screen and of course, on our webpage. I would also like to invite you all to our Q&A session at 11:00 A.M. CET today. With that, thank you so much for watching.