Mips AB (publ)

Q2 2026 net sales increased 72% year over year; organic growth was 42%. Gross profit increased 71%, with gross margin of 74.1% versus 74.2% last year. Adjusted EBIT increased 98% and adjusted EBIT margin was 46.7% versus 40.4% last year. Operating cash flow was SEK 62 million versus SEK 18 million last year. For the first six months, net sales rose 53%, organic growth was 35%, gross margin was 72.9% versus 73.2%, adjusted EBIT margin was 41.4% versus 35.1%, and operating cash flow was SEK 80 million. Cash and cash equivalents were SEK 187 million at quarter-end, dividend payout was SEK 66 million in April, and revolving credit facility utilization was SEK 300 million. Management said the settlement amount of $3.25 million will affect Q3, with a few additional million in legal fees, roughly SEK 35 million total. Forward guidance/commentary: management reiterated the ambition to grow a little more than 30% and said it is closing in on an EBIT margin above 50%, though it does not expect to reach 50% for the full year. Koroyd revenue ambition for 2025 was reiterated at SEK 120 million, and safety was said to be on track to reach SEK 100 million this year.

Max Strandwitz said the quarter showed broad-based momentum across categories and geographies, with Europe continuing to perform strongly, North America better than expected, and Asia recovering. He emphasized that Koroyd is integrating well and expanding Mips into new end-markets such as firefighting and broader safety applications. His tone was confident and upbeat, but he repeatedly framed expectations conservatively by assuming a flat bike market and not relying on macro help.

Karin Rosenthal highlighted 72% net sales growth, 42% organic growth, gross profit up 71%, and adjusted EBIT up 98% with a 46.7% margin. She cited operating cash flow of SEK 62 million in the quarter and SEK 80 million for the first half, plus cash and cash equivalents of SEK 187 million and revolving credit facility utilization of SEK 300 million at quarter-end. She also noted Q2 OpEx included SEK 12 million in legal costs and SEK 1 million in transaction costs, and said the $3.25 million settlement will affect Q3.

Analysts focused on U.S. market conditions, inventory levels, Koroyd’s margin profile, safety growth, and whether Q3 would face a heavier expense burden. Management said the U.S. bike market appears flat in volume terms, inventories are at very low levels, and premium products remain strong even as lower price points gain traction. On Koroyd, management said it is profitable though at a somewhat lower margin than legacy Mips, reiterated a 2025 revenue ambition of SEK 120 million for Koroyd, and said Q3 should not be unusually burdened by trade fair costs, though the legal settlement and related fees will be booked then.