Hello, welcome to today's presentation with Checkin.com Group. Joining us today is CEO Martin Bäuml. We will begin with a presentation, followed by a question and answer session. With that said, I'll hand the floor to you. Please go ahead.
Thank you. My name is Martin Bäuml, I'm the Interim CEO and CFO, today I will take you through our report for the fourth quarter of 2025. We've had two tough years behind us, I would say the feeling in the company right now is one of a strong desire for revenge, with the focus on finding our way back to growth again. As you see in the slide here, we end the quarter with a turnover of SEK 15.5 million, which is a decline of 11% versus the previous quarter. The decline in revenue was driven by a revenue loss from one of our largest customer during the autumn. I will come back to this a little bit later. Despite the decreased revenue, we've had strong cost control in place, which means that the EBITDA margin still doubled compared to last year.
In terms of cash flow, we had our best quarter in two years with a positive cash flow even after investments in R&D. Organizationally, it feels a little bit like a fresh start since we have a new board in place since November and a new CEO coming in in May. I'm just the Interim CEO now for a few months, as you might be aware of. Looking a little bit more on the revenue decline here in the quarter. It was primarily driven by reduced use of the software by one of our largest customers, who are active in the aviation industry. It's important to note that they have not terminated the contract, they continue to use our software to a large extent. They are still one of our 10 largest customers, and we have no indication that they will reduce volumes further.
In fact, we've actually just recently added new functionality and new modules for this specific customer. However, the revenues from these initiatives are unfortunately quite small compared to the volume reduction we saw during the fall. The result is also that we have not been able to offset this loss with growth from new or other existing customers, which meant then that revenues fell by 10% during Q4 versus Q4 last year and 11% versus Q3. This makes Q4 actually our worst quarter revenue-wise since the end of 2021, which we are of course not satisfied with. Given these developments lately, where we have not reached our expectations at all, combined with more cautious future outlooks, the board has made a strategic decision to write down all of the goodwill that we have in connection with the acquisitions of the GetID and Datacorp.
This impacts the quarter's result with SEK 116 million. It's important to note that this is a pure accounting one-off item that does not affect our cash flows. We don't need to pay this SEK 116 million to anyone. It's just an accounting impact. Still, it makes EBIT and the net results deep in the negative. The advantage of this is that our balance sheet now better reflects the current conditions of the business. With that said, we're still using the technology and resources from these two acquisitions. Through this write-down, we take a more conservative approach regarding the future values of these companies. That's the reason we've done it. Looking a little bit more on the commercial side. Since I took over the CEO role here, my focus had been to focus the resources to where we are the strongest.
Historically, that has been within the iGaming sector, but also within fintech and travel. Given the limited size of our company and the commercial organization, it's important to focus the resources the right way since we can't do everything everywhere. Therefore, we are now placing more focus on what we do best and where we have the strongest product market fit and market position, and that is primarily within iGaming, but also fintech. This does not mean that we will abandon other segments, but we will focus fewer resources on, for example, global enterprises, U.S. large companies, large global airlines, for example, as we have seen that we have significantly lower win rates in these segments, and also it just takes longer to sell. It requires a much longer sales process as well.
Looking specifically into the iGaming segment. I'm going to share some more details about this segment now. This market is characterized by the need to balance two opposing sides here. On the one side, you have the strict regulatory compliance, driven by regulators often, versus on the other side, the requirement or the need for frictionless user experience. In this intersection is where our product works the best. We help companies meet all sorts of regulations across the world related to identity verification, responsible gambling, age verification, age assurance, et cetera, while we, at the same time, have the market's best user experience ensuring speed and high conversion. What is driving opportunities in the iGaming market right now is regulation. Authorities and regulators worldwide are trying to eliminate the black market gambling. We have seen many geographical markets become newly regulated or re-regulated in recent years.
These types of new regulations or re-regulations is really beneficial to us, as that often forces operators or customers that they need to acquire a solution like ours. We've been particularly successful in this. For example, I think we've mentioned it through the years in our reports and in our quarterly presentations. We've been particularly successful in, for example, Holland and Brazil. The other positive aspect about regulations is that they are very fragmented. There is no solution that works everywhere. Instead, there are different solutions that are required for different markets, that also helps our global operators. They require a partner that can help them solve this in every market, that's where we come in. We can help them stitch together the solution and optimize for every geographical market, so they don't have to do this themselves. That we are kind of becoming this one-stop shop.
On the other hand, with regulations, too much regulation is not good either, I think we mentioned this before as well, as we've seen in Germany, for example, where iGaming companies find it difficult to make money. A lot of operators have left the market. Outside the regulation itself, there's a lot of focus on fraud at the moment among our customers. That has also forced us to make that the biggest priority. Deep fake and synthetic identities are becoming increasingly common. It's important to have a product that constantly remains at the forefront to catch this. I would say we work daily on new iterations and features that make it harder for fraudsters to succeed in tricking the systems. This is what our customers are requesting the most.
I would say our product suite is at the very forefront regarding this. We have many interesting dialogues with potential and existing customers regarding our solution here. Moving on to the financial side of it. I take on my CFO hat now. The report is, of course, packed with figures and details. In this financial part, I'm just going to go through the highlights. As already mentioned, net revenues decreased by 10% compared to the same quarter last year to SEK 15.5 million. Here, we lost some ground due to exchange rate changes. At fixed exchange rate, the decline was instead - 5%. The gross margin stood at 72% in the quarter, in line with what we have maintained over the past year.
EBITDA amounted to SEK 3.5 million with a margin of 22%, which is a doubling of the margin compared to the same period last year. The cash flow from operating activities ended at positive almost SEK +6 million, which means that even after investments in R&D, we generated positive cash flow during the period, which is the first time in two years that we had a positive cash flow after investments. We ended the quarter with a cash balance of almost SEK 40 million and an equity ratio of 83%. Looking more specifically at the revenue, we've already mentioned that we lost some ground compared to last year. The revenue landed at SEK 15.5 million for the quarter, down 10%, as you can see in the chart. As we already discussed during Q4, the decrease was primarily driven by the reduced revenue from this airline customer.
If you look at the full year 2025 figure, where we landed at almost SEK 70 million, the biggest impact came from our old customer, RingCentral, which was a contract that we ended in the middle of 2024. I would say that's the biggest contributor to the fall in revenue for the full year because RingCentral contributed almost SEK 7 million in 2024, but nothing in 2025. That kind of closes that delta completely. Moving on to gross profit. Gross profit for the quarter decreased to SEK 11.2 million, driven by falling revenue. The margin of 72%, I would say, is in line with where we have been during the last 12-month period, though a little bit lower than what we've seen in previous years. We were over 80% back in 2023.
We have continued to work here with cost optimizations, especially regarding server capacity, but also other direct costs that impact the gross margin. As we discussed previously in previous presentations, a large part of these costs are of relatively fixed nature, which means that the gross margin will go up once we get back to growth again. Moving on to sales and marketing costs. We have placed a strong focus here also on streamlining and optimizing the costs, we spent SEK 2.4 million on these activities during the quarter, down from SEK 3.7 million during the same period last year. This corresponds to about 16% of revenue during the quarter. If you look at the chart to the right, about 19% of revenues for the full year of 2025.
Moving to EBITDA. The cost savings that we have put in place over the last year have taken effect, the EBITDA went up to SEK 3.5 million, with a margin of 22%. As I said before, this is a doubling of the margin compared to the same period last year. We ended the full year with a margin of 21% also. That is up compared to last year. Important note here that the goodwill write-down that we discussed earlier, it does not impact the EBITDA by definition since EBITDA is before goodwill amortization or write-downs. If you look at the EBIT numbers or the operating profit in the report, that figure becomes significantly negative after the write-down of about SEK 116 million in the quarter. Again, we should remember that this is a pure accounting expense that does not affect our cash or cash flows.
Looking at the cash position and equity ratio here, we ended the quarter with a cash position of almost SEK 40 million. If we adjust for the loans that we have, the net cash was SEK 9.8 million at the end of December. The equity ratio at the end of the quarter stood at 83%, and the decline in the equity ratio is primarily driven by the goodwill write-down. To summarize the quarter, revenues decreased by 10% compared to the same period last year, driven by revenue loss from one of our major customers, as we discussed. Cost savings meant that EBITDA margin still doubled compared to last year. A more conservative approach to the future has led us to write down all the goodwill linked to GetID and Datacorp, with an impact of about SEK 116 million in the quarter.
We had a positive cash flow even after investments in R&D for the first quarter in two years. We really had a fresh start with a new board in place and a new CEO starting in Q2. I would say despite the poor growth over the past two years, I am very positive about the company's future prospects. We are at the position with the cost base that it only takes one or a few dialogues or a few customers that will kind of impact and drive growth, and that will trickle down to improved margins as well, and pretty quickly get us back to growth and stronger margins given our cost structure.
With that, I hand over to Finwire who will handle the Q&A session.
Thank you for your presentation, Martin. Now we open up for questions. First question is, why do you choose to write off the entire value of the goodwill all at once? Do you have so little faith in being able to generate revenue with your current products?
Yeah, that's a good question. It's always a little bit of a gray area when you're valuing companies, especially long-term into the future. It's a little bit like the question, how long is a piece of string? With that said, it is no news that we have not lived up to our high goals or high expectations. When we've had declining revenues without meaningful profits now for two years, it becomes harder to justify the value of the underlying assets. This is just pure mathematics or given that the DCF in the Excel model doesn't really work out or works.
We could, of course, chosen to write down only a part of this and still kind of make the models work. The board chose to take a more conservative approach about the future expectations here and write off everything at once to make it a little bit cleaner. By doing this, we get a cleaner balance sheet that better reflects the current conditions of the business.
You mentioned that the revenue loss in Q4 is driven by a major European airline. Is that contract still in place, and what is the risk that they will stop using you entirely?
Yes. That is correct. It's obviously very unfortunate that we got this decline in revenue and that it was so large now during Q4. However, as I mentioned in the presentation here, the contract is definitely still in place, and we continue to work closely with this customer. We have just recently added new modules and new functionality in collaboration with these customers. I don't expect any further declines from here. However, the revenue from these additions are small in comparison to the decrease in usage that we experienced during the quarter, unfortunately.
Can you tell us more about what you expect the new CEO to bring to the company?
Yeah. That's a tough question for me to answer, given that he will be my boss. From my perspective, I believe, I raised his name, he will bring some new experiences and some new perspectives, since he will be the company's first external CEO. He is very experienced from a variety of leading roles in different tech companies. That's really good. Then from a personal point, I really like that he's trained in the old Kinnevik school, we call it in Sweden, with everything that entails, in terms of analysis, work ethics, and commercial training. I'm really looking forward to him joining.
Why are your largest customers choosing to terminate or reduce their cooperation with you?
There are different answers to this. Sometimes it's because they leave a geographical market. Sometimes it's because they are shutting down a specific use case. Sometimes it's driven by the customer being acquired by another company that has a competing solution. I guess the question may be a little bit linked to the decline now in the Q4 that we saw with the big customer. More specifically in that scenario, that customer had two different big ID verification flows through us, for slightly different use cases, and where they chose, during the fall, to completely shut down one of them. Again, as I mentioned already now, they are still using the other one, and they are still quite a big customers for us still.
How has the cooperation with WestJet and Ooredoo developed in terms of revenue?
We have talked about these customers before, they are still customers of ours. The rollout has not gone as quickly as we'd hoped. They are still relatively small. Given the size of these companies, there is potential to grow here, but nothing we have seen yet.
What does churn look like within the iGaming vertical compared to the group as a whole? How do you perceive the competitive situation there?
Churn is hard to avoid when working with SaaS and software. As I mentioned in the presentation, iGaming is where we are clearly the strongest. It is where we have had the most and broadest success historically. Despite the industry having its challenges, we see ourselves as a natural provider in this segment. As I mentioned, given the strong focus about to balancing both the regulatory compliance and optimal customer experience and conversion. Yeah, that's really all I can comment on. I can't go into specific churn rates for the specific segments, but iGaming is our strongest segment.
Thank you. Another question is: how likely is it that the company will need to raise new capital?
Yeah. It's a difficult question for me to answer. It is more a question for the board and the major owners. There are no such plans in place right now. We have reduced costs significantly over the last 12-18 months, and we have a cash balance of close to SEK 40 million at the end of December. Of course, the board could choose to raise money anyway, but in that case, it wouldn't really be to sort of save the company, but rather to more actively invest in growth initiatives.
What is required for you to find profitable growth again now?
Actually, very little. We are a slim organization with very close to being breakeven, just one or two slightly larger customers would lead us direct to substantial growth. Given our efficient cost structure, most of those revenues will also drop down to the bottom line. We already have a number of companies with great potential that are already signed and live. We also have some in the pipeline as well. We just need to ensure that these companies roll out the usage broadly across all their geographies and offerings. As I said in the presentation, I think we are in a very good position as long as we can find the growth.
Next question is: is there any status update regarding the contract with Visma?
Yes. The product is live and Visma's customers can activate it. There are a number of interested customers already, but I believe this one will take a little bit more time because it requires us to educate both Visma and their organization also their customers about what we offer and how we can help them. There's clearly big potential in this partnership, but unfortunately, I don't think it's going to be something that explodes overnight and suddenly becomes really big. It will definitely grow more slowly over a longer period of time.
The gross margin has declined over the last one, two years, but it turned upward again now. What is the reason for this?
Actually, I think even this quarter is fairly in line with the level we have seen during the past year, even if we're up a couple of percent compared to last year. As I mentioned in the presentation, this is driven by further cost focus, primarily on the server side. I think the most important takeaway regarding our gross margin is that many of these costs are of a fixed nature or semi-fixed nature, which means that the gross margin will go up again once we get back to growth.
The last question is, concretely, what suggests that 2026 will be a better year regarding growth?
Yeah. Together with the new board, we've decided to be even more focused on the areas where we are the best. I would say laser-focused on things that work. Beyond that, I think the cost savings that we have taken during 2025 has given us more room to invest in growth with more focus and more people in the commercial team. I would also maybe say that we have the new CEO coming in with good and long experiences, who I think can contribute also to the growth and with some new perspectives. I believe our product is better than our competitors. We constantly hear that from customers that are comparing, especially after the investments made during the past year, especially in fraud and similar things.
As you alluded to in the previous question here in the Q&A, we have some super interesting companies that we have already signed, which hasn't really gotten started yet. There are a lot of underlying potential also in some of the customers we already have in the customer base. I would say a few different things that will make 2026 better than 2024, and 2025.
There are no more questions at this time. Thank you for listening.