Hello everyone, and welcome to the Q3 report. We will soon start with the presentation, and if you have any questions during the presentation, please send them into ir@bimobject.com, and we will get to them at the end. For those of you who meet us here on a regular basis, you will notice that our brilliant host, Lisa Norlander, is down with the flu today, so we will cover for her. As always, you will hear from me, Sofia Hylén, who is the Interim CEO at BIMobject , our CFO, Per Göransson, and today we also have Pia Engholm with us, who is the Chair of the Board. The agenda today consists of business updates, both recent events and a strategy refresh, and then we will also, of course, get to financials. Lastly, we will wrap up with a Q&A. Let's get to it.
In the quarter, we experienced a flattish turnover growth impacted by a -5% effect from currency fluctuations. We see that ARR growth improved from earlier numbers this year, and we delivered an ARR growth of 7%. Here we also see that September was standing out as a particularly strong month. As you know, the vast majority of our revenue comes from BIMobject.com. Our other products are gradually increasing their contribution to the overall revenue, but still the vast majority is BIMobject.com. When we're looking in Q3 specifically, we can see that the growth is mainly driven by customer acquisition in our BIM Connect offering. We will talk about this a bit later, but that means that the new customers we're referring to are new building material distributors. The other part is the improved retention for BIMobject.com.
Our EBITDA stands at -SEK 6.9 million , and this can be compared with the +SEK 1 million we had in Q3 last year. As mentioned in previous quarters, we will also talk about this today, the operating result that we see is mainly due to our strategic product development investments, and we will talk about what they are leading to later on in this presentation. Also worth noting that we mentioned in the report is that Q3 is always favored by vacation effects. As can be read, our current cash position is SEK 171 million in liquid assets. Moving over to the business events. A few weeks ago, we announced the appointment of a new CEO.
We look forward to welcoming Niklas Agevik to the organization, and until then, as also previously mentioned, me and the rest of the company are working full speed ahead on delivering on our strategy every day. More details will follow on Niklas when I hand over to Pia in just a few minutes. During the quarter, we have also launched the co-pilot AI feature in the ENDO-X and completed the acquisition of GreenMetrica and related IP assets. We also sent out just a couple of days ago a press release regarding the BIM Connect agreement with SEG, the Swedish electricity wholesalers, and we will cover this one a bit more in depth later on. With that said, I would like to hand over to Pia.
Thank you very much, Sofia. I'm not going to be long. I just wanted to say that we are very happy to welcome Niklas Agevik to BIMobject. We've had a long recruitment process looking for specific skills, and we really feel that we have found what we've been looking for in Niklas. He brings commercial drive, operational focus, and entrepreneurial energy. We really think that's the right combination for BIMobject's new strategic focus and our next phase of growth. Niklas will assume the position no later than the 16th of March 2026. As Sofia mentioned, in the meantime, she and her team continue doing a fantastic job of keeping the engine running and delivering on our strategy. That's it. Over to you again, Sofia.
Thank you, Pia. Great. Let's look into this strategy that we have and the industry that we're in. Today we have a situation where product data is fragmented, siloed, and inconsistent. It is extremely difficult to retrieve product information at scale. It is often scattered across manufacturer websites, product sheets, and multiple databases. When you find it, it can also be presented in various different formats. Are you using kilograms? Are you using grams? Which unit of length are you using? It also is very likely that the product information that you retrieve is not reusable across companies due to the fact that they're each using their own software and their own systems. Even when high-quality data is found, it often loses reliability and the necessary details for the other stakeholders when it's shared in the process.
Product data is needed in order for us to be able to build, and every building project involves hundreds of manufacturers and millions of data points. What we want to do is solve the industry's need by simplifying and standardizing this complexity. In short, product data is everywhere. Still, it's never where and when it's needed. Leveraging our position, our industry knowledge, and AI competence, we believe we actually can overcome this challenge. We believe we not only can overcome it, but also transform it into a valuable and efficient resource. Products, like projects, need product information, and products need to be specified in projects, and our platform will act as the bridge between projects and manufacturers. You recognize this picture if you've been here before. At the heart of our strategy is our core.
Our core is our centralized, structured, and trusted dynamic data model that stores and refines product information. This core ensures that product data is reliable, that it is enriched and usable across the full building cycle. We compile product data. Compiling product data means that we are enabling manufacturers to create high-quality, standardized, and ready-to-use product data. This data is structured to meet the needs of the real projects. We ensure that the stakeholders who need it can consume data. The consume part for us ensures that this product data that we have compiled is not only accessible, but also actionable. We deliver the right data to the right stakeholder in the right format at the exact moment it's needed to drive, for example, design decisions, compliance, or sustainability reporting. By this, we enable property developers, architects, and engineers to consume reliable product information so they can make informed decisions.
Last but not least, we connect the industry stakeholders and their data all in one place. This can be through integrations with databases or through our clients' internal systems. To make this strategy work in practice, we first help manufacturers to gather all their product data in one place. What can product data be then? It can come in many forms. Like a BIM object, it can be a lifecycle assessment or an Environmental Product Declaration, or just an Excel file with different parameters. We have tools internally, such as ENDO-X, where customers can upload, create, and update their data more easily. This means that everything is streamlined and centralized to ensure that the information stays reliable and up to date. Next, we make it easy for others to use this data.
We have different stakeholders, architects, engineers, and property owners who can access the same trusted information at different points in a project, in the point where they need it. For example, architects can get early access to lifecycle data to support better design decisions through the design of a product, and property owners can use the same data for procurement or sustainability reporting during and after construction. With that, we wrap up this section, and before moving into financial, we will, as always, look at the progress we have made within our different areas. Let's start with an area we haven't mentioned that much before, the core. As I mentioned, the heart of our business model is our data model.
This is also the key to truly become the global leading provider of building product information, and by that, achieving our North Star to deliver the right data in the right format, in the right location, to the right stakeholder. Obviously, we have data models and databases today in our different products, and we will use the learnings from them in our next-generation database. This development has started and will gradually be released throughout 2026. When this is in place, this will, for example, solve the customer pain of updating different databases since the data will be in a modular and structured format, which will enable us to share data in the way the database or the data user needs it. Over time, this will also open up for future and new revenue streams from our customers, mainly the building product manufacturers.
Taking a look at ENDO-X, which is one of our products within Compile. For those of you who are not that familiar with ENDO-X, it is a software that helps manufacturers to create EPDs in minutes compared to several hours and consulting hours as it's done today. ENDO-X is built on cutting-edge technology, and I would say that it is one of the most advanced tools on the market. If you go back one or two quarters, you can also see a demo of how it looks like. An example of a new release that we have done this quarter is the co-pilot AI feature in ENDO-X. This feature is applying AI-powered functionality to reduce manual work in the data gathering, which can be really time-consuming, and turn this into structured data. The result is an agentic workflow which creates lifecycle assessments and EPDs independently.
This can, among many things, result in significant time improvements. This feature is currently available to a select number of customers during the test phase, and we continuously invite more users into it, also as they're passing our AI training, which we hosted for the first time earlier this week. Finally, let's spend some time on Connect, and specifically on how our current solution to building product distributors works. The reason we have chosen to spend some extra time today on this is because this is a solution area where we frequently get follow-up questions, and also since we've seen the first proof of concept this quarter by being able to expand not only in Sweden, but also outside Sweden. Our customer is the building material distributor. Let's call him Kim.
Kim works at a large distributor who stocks tens of thousands of SKUs for contractors, builders, and municipalities across the Nordics. Kim is pragmatic, he's competent, and he's also under constant pressure to deliver reliable, traceable product data to his customers. He's also juggling suppliers, systems, and sustainability targets during his daily work. Kim's company supplies the materials that keep the building project moving. That can be everything from concrete, insulation, to every screw and every seal. He, of course, wants his company to work with the best suppliers, both providing the best price to his customers, but also with the strongest sustainability numbers. Kim is working with multiple sources of product data, but this is usually not traceable. It also comes with unbroken or broken data links back to his suppliers. Just finding and compiling the data for his thousands of SKUs is too time-consuming.
Even if he would get to it, less than 10% of the products in his catalog have Environmental Product Declarations, EPDs. Why is it like that then? Creating and verifying EPDs has historically been taking a long time, expertise, and money. As you then maybe can guess, we also have a solution in this in ENDO-X. Anyway, what Kim then says is that with BIMobject.com, I both access product information from the product database, and I can also add climate data to all my SKUs, making it easier to negotiate with suppliers, provide our customers with climate calculations, and scope 3 reports. Our solution for building material distributors leverages the creation of generic data as well as our library of specific data. How it works then is that the distributor starts by providing us with their article data.
We match that with product data in our database and enrich the product data with specific data where it's available, and generic data for the remaining products. Then we feed it back to the distributor. This puts us in a unique position in the market, handling millions of articles in the Nordic distributing market and beyond. We can also, by this, supply them with a high quantity of products and still be able to provide them with high-quality outcomes. This can be seen in the growth of this product. An example you could read about earlier this week, which is our contract with SEG, Sveriges Elgrossister, or the Swedish Electricity Wholesalers, which is a trade organization for electricity wholesalers in Sweden. The agreement basically means that our database and SEG's database will share product information from their owners. SEG's owners include, for example, Alcel, Kesko, Rexel, Solar, and Sonepar.
This integration will simplify the dissemination of current and reliable product information to the market, and also our technology to be able to generate climate data for the climate impact of all products, which is really valuable for SEG. We will see this agreement and this contract materialize commercially into revenue early next year, is the estimation. Speaking of money, I will now hand over to our brilliant CFO, Per Göransson, to share more about the financials.
Okay, thank you, Sofia. As you already mentioned, our ARR grew 7% year-over-year. You can flip to the next slide here. 7% year-over-year and 3% quarter- over- quarter. The growth in the quarter is a clear improvement, underlying driven by stronger retention within Bimobject.com and upgrades in Connect for distributors. The ARR metric is primarily connected to future revenue and recurring revenue. Net sales recognized in the quarter decreased year-over-year, and that is due to currency effects, not least the weaker USD. In total, we have -5% from FX. The drop in services revenue is considered normal due to vacation period effects. If we go over to the cost side, we continue to invest in development, but in Q3, we're also seasonally favored by vacation period. Hence, the drop in costs quarter- over- quarter.
Overall, the cost basis is plus 12% versus prior year, and primarily related to higher costs within product development, but also increased commercial investments. For quarter- over- quarter comparison, it's worth to note that Q1 and Q2 also included some restructuring costs. Overall, I would say that our cost base is today in line with the strategic plan. If we move over to the full income statement, we continue to see stable net sales, but with the FX headwinds. In Q3, we got the vacation effect on the cost side, which makes EBITDA relatively stronger in the quarter. EBITDA at -SEK 6.9 million versus SEK 1 million prior year. Depreciation and amortization costs increased due to the acquisition and increased capitalized work for own accounts. EBIT at -SEK 10.2 million versus -SEK 0.8 million prior year.
The financial net is relatively strong in the quarter due to realized gains in interest funds within current investments.
Thank you so much, Per. To conclude all of this, what we're doing is that we're building a scalable ecosystem where product information is compiled, consumed, and connected. What we have seen during this year is that the integration of AI is really transformative. We can see that in our internal work, but also in the way that we can build products leveraging AI technology. This is a significant game changer for both our company and the broader industry. With our position in the industry, our industry knowledge, and our AI competence, we believe that we can overcome the challenge of distributed, unstructured, and decentralized product information and transform it from a headache to a valuable and efficient resource. Thank you so much for listening today. Now we open up for questions.
The Q&A today will then be slightly different since me and Per will ask ourselves questions that you have sent in over email and then directly answer them. We are sure you will follow. The first question we have got is whether we are working on implementing blockchain technology in our future solutions. This is a really good question and something that has been discussed in our product team, but not something we have concrete plans on implementing as of now. The second question is what solutions, product features are in the pipeline. I know that you are all longing for that really good product roadmap for us to share. We will keep you updated the best we can, but also not share that detailed roadmap. What I can say is that we are right now focusing on the next-generation database that I mentioned.
We are also iterating and making the products we have even better and making sure that we really reach and come deeper in the product market fit. The third question is, ENDO-X has just launched co-pilot. How competitive is this solution? This is another really good question. What I can say is that this is the only solution on the market that is leveraging AI in this way to decrease time and cost to compile product data. The proof, of course, comes when we see large volumes of revenue connected to this product. What we see now is that there are good signals and we get really good feedback when talking to partners, users, and customers. This is something that we will keep talking about in the coming quarters. We have got two questions about the design application.
The design application is a product we have which gives the BIMobject.com or Revit users the opportunity to use the BIMobject.com library directly in Revit and also create easy lifecycle assessments. The questions are, how many have downloaded the design application? How many are active users? What creates the most retention and stickiness? Also, have you seen a growing inflow of customers to product after the launch of the design application? We launched the design application just after the summer and are really closely monitoring the data, trying out different marketing messages, and also looking at the retention. We need some more data to truly be able to answer this question. We will come back with this later on when we have that. Another question is whether Prodikt platform is ready for a broader international expansion.
The answer to this question is that it kind of is technically, but the real power of the platform also comes from the local data. For it to be as powerful as it is in Sweden, it's also a matter of how we choose to invest our commercial resources. We have a question that states, with the solution aimed at distributors, can you expand globally without making country-specific adaptations? If so, when will you expand? The answer to this question is that yes, we can expand globally. There is, of course, that some countries are more interested in some type of data, but that doesn't hinder us from going globally. We have already started looking outside Sweden. In this quarter, we actually onboarded a distributor outside Sweden. I hand over to you, Per.
Yeah. I got one question. What proportion of the quarter's growth comes from new versus existing services? In nominal value, it's close to 50-50 in this quarter. We added SEK 4.6 million to our ARR, of which SEK 2.2 million comes from BIMobject.com and SEK 2.4 million is from newer products.
Super. The final question for today, could you provide some more details on the product data in SEG's database that will be offered in product and when the integration is estimated to be completed? As I also mentioned briefly, it is estimated to be completed the latest beginning of next year. That will be also mentioned in a coming quarterly report. Great. Thank you so much for engaging and listening. If you have any further questions after the call, you are always welcome to email us at ir@bimobject.com. I wish you a really nice Thursday. Thank you.