Welcome to the C-RAD Q4 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to CEO Tomas Blomquist and CFO Linda Frölén. Please go ahead.
Thank you, and good morning, everyone. Welcome to C-RAD's presentation of our results for the fourth quarter and full year 2025. I'm Tomas Blomquist, CEO of C-RAD, and joining me today is our CFO, Linda Frölén. I will begin with a brief introduction and perspective. After that, Linda will walk through the financial and regional performance, and we will then open up the call for a Q&A session. This is my ninth day and first quarterly webcast as CEO of C-RAD, and I would like to begin by saying that I'm very happy and humbled to take on this role. I also would like to thank the board for its confidence, and I want to express my sincere appreciation to our interim leadership team, Linda Frölén, Johan Danielsson, and board member Peter Simonsbacka, for their disciplined and professional leadership during the transition.
Their work ensures stability and continuity and provides a strong foundation as we move into the next phase of C-RAD's development. For those of you who do not know me, I have spent more than 30 years in life science, diagnostics, and medtech, including over two decades in global leadership roles and five years as a CEO of a NASDAQ-listed large cap company. Throughout my career, my focus has been on building profitable growth companies with exceptional people through clear priorities, strong execution, and high-performance cultures. What attracted me to C-RAD was the combination of clinically relevant technology, a growing end market, and solid fundamentals, including a strong balance sheet, stable gross margins, and a committed organization and board. My leadership philosophy is pragmatic and execution-driven. I believe in clarity, accountability, and teamwork built on trust.
High-performing organizations are created when expectations are clear, responsibilities are owned, and teams are empowered to challenge constructively, always with a shared focus on delivery and outcomes and on our customers. As I step into this role, my initial priority is to listen and learn, to deeply understand our organization, customers, products, and markets. At the same time, it is clear to me that the next phase for C-RAD will be defined less by ambition statements and more by consistent execution, converting our strength into measurable and repeatable results. C-RAD is well positioned in an attractive niche, but we are not yet realizing our full potential. Going forward, our focus will be on strengthening commercial execution, simplifying and strengthening our organization where needed, and ensuring that our organization, processes, and decision-making structures support scalable and sustainable growth.
With that, I will now hand over to our CFO, Linda Frölén, who will review the financial performance for the quarter.
Thank you, Tomas. The performance in the quarter varied across regions. In constant currencies, order intake for the group declined in Q4 by 4% year-on-year. The Americas showed growth and was a positive contributor. The decrease was mainly driven by fewer product orders in APAC, reflecting a more difficult market environment in the region. In EMEA, we saw growth in product orders, which could not fully compensate for the decline in services. Revenue for the group was down 6% year-on-year in constant currencies. Americas showed strong growth versus last year, with increased revenues in both products and services. The decline was primarily related to slower product deliveries in APAC.
As the service business is a smaller part in APAC, delays in product deliveries have a more pronounced impact on total revenue in the region, with a lower share of recurring revenues. In summary, regional development in Q4 was uneven, with strength in the Americas, stability in EMEA, and continued headwinds in APAC. While we continue to see some uncertainty in America still, with some slow decision making, the quarter marked an important milestone with the first deliveries of our entry-level system, Catalyst+ Lite. In addition, reimbursement codes supporting active motion management are helping to underpin demand. As a result, order intake for the region increased by 7% year-on-year, and revenue grew strongly compared to last year. EMEA delivered a solid performance despite tough year-on-year comparisons. Momentum remained good, supported by continued end-user engagement, including customer meetings and ongoing reference building.
Order intake declined slightly versus last year, while revenue was broadly stable and slightly up. Finally, APAC, a region with strong comparison figures for 2024. The region was weak in Q3 and continued to face challenging conditions, with longer sales cycles and increased competition.... This is reflected in a sharp decline in order intake for the quarter and a significant decline in revenue in the region. Gross profit for the quarter was SEK 75 million , compared to SEK 80 million a year ago. Gross margin development continued to be positive, with an increase from 66% in Q4 last year to 71% in this quarter. The increase year-on-year is explained by the higher share of service revenue in this quarter and a favorable market mix, as we have a higher share of our total revenue in Americas this quarter and a lower share from APAC.
We also had some proton revenues in this quarter, which we did not have in the fourth quarter of last year, but the main driver behind the increased margin is the increase in services and the geographical mix. Looking at our operating expenses after capitalized expenses and adjusted for one-off items, you see to the left of this chart that they increased 8% year-on-year from SEK 56 million last year to SEK 60 million in this quarter. The increase year-on-year is mainly due to increased number of employees. These are mainly within sales, product development, and services, where we have gradually exchanged consultants with own employees. The additions are deliberate and support our strategic priorities and growth ambitions. We also have somewhat increased other OpEx, which relate to increased travels and higher costs for freight and customs.
To the right of the slide, you see that quarter-over-quarter OpEx is up from SEK 58 million in Q3 to SEK 60 million in this quarter. The increase is related to lower personnel expenses in Q3 due to summer holidays. We have reduced our annualized cost base by SEK 23 million from the peak level of SEK 253 million in Q3 of 2024. Importantly, despite the recent increases, we will remain a sharp focus on running the organization as efficiently as possible. At the same time, as we increase our focus on innovation and product development, underlying OpEx may increase slightly. These increases are targeted and strategic, and as initiatives approach the commercialization phase, the capitalization rate is expected to increase, partly offsetting the OpEx impact.
EBIT for the fourth quarter, adjusted for unrealized FX and one-off items, was SEK 11 million, compared to SEK 21 million a year ago, and the margin reached 11% versus 17% a year ago. The decrease for this quarter is mainly explained by fewer product deliveries that put pressure on margins, coupled by somewhat higher expenses. As already said, we remain focused on running our operations as efficiently as possible. At the same time, we need to balance this with initiatives that support future growth. Our cash balances increased by SEK 20 million during 2025 and stood at SEK 171 million at year-end, compared to SEK 151 million at the beginning of the year. Repurchase of shares were made during Q4 of SEK 12 million.
Cash flow from working capital was SEK 16 million in the quarter, which is a great improvement from last year, when it was SEK 3 million. Altogether, our operating cash flow remained solid and positive, amounting to SEK 21 million in Q4 and SEK 71 million for the full year, reflecting continued focus on cash discipline. And as you know, we have had orders on our balance sheet that have been awaiting final acceptance tests and that have therefore been waiting to be invoiced. These are down 19% since last year and will continue to be in focus going forward, as well as our overall focus on our balance sheet and our cash flow. I would also like to remind you that C-RAD is a company with a strong balance sheet, with no long-term debt. And with that, we will hand over back to the moderator for Q&A.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Okay, thank you. To conclude, I would like to briefly outline how I view the coming months and my approach. My first 100 days as CEO are centered around three priorities. First, building a deep, fact-based understanding of the business and strengthening relationships across the organization and with key external stakeholders. Second, working closely with the management team and the board to sharpen priorities and ensure alignment. Third, establishing the structure, pace, and accountability required to support disciplined organic growth, an efficient organization, and, over time, selective inorganic opportunities. C-RAD has a clear strategic direction, a relevant product offering, and a strong position in a growing market. Our task now is execution, reducing complexity where appropriate, strengthening ownership, and ensuring that we consistently deliver on our commitments. I approach this role with humility, energy, and ambition.
Humility in respect of the complexity of the business and the work already done. Energy to engage fully with the organization, our customers, and our partners. And ambition to help C-RAD realize its full potential. As an ending note, I really would like to thank our global team, customers, partners, and shareholders for your continued support. I look forward to working together as we take the next steps in C-RAD's development. Thank you for joining us today. We look forward to sharing our initial 100-day observations and reporting our Q1 2026 results on May 6. Take care!