Paxman AB (publ)

Group sales were just over SEK 105 million, crossing the SEK 100 million mark for the first time and growing 40% year over year. EBITDA was about SEK 14 million, with management citing about SEK 5.2 million of EBITDA contribution from the Dignitana acquisition; the company also referenced an 18.5% EBITDA margin before CIPN-related costs and about a 13% margin including those costs. U.S. revenues for Paxman and the group were $7.1 million versus $4 million in the same quarter of 2025, and insurance-based billing revenue grew 110%. Cash in the bank was SEK 105 million, and the order book stood at 190 systems, including 80 in the U.S. Looking ahead, management said revenue from five transitioning practices should show up in Q4, while neuropathy commercialization remains planned for Q2 2027 in the U.S. after a De Novo submission this month; for Europe, version 2 units are expected to start being built in Q4 and rollouts are planned for Germany, France, Spain and the Netherlands by September.

Richard Paxman struck an upbeat tone on the core business, saying the company is seeing “finally” real momentum in insurance-based billing and that higher utilization is the key lever behind revenue growth. He emphasized that switching sites to IBBM drives materially more patient use and that existing customers can produce better revenue without new installations. On neuropathy, he was frustrated by the FDA delay but said the opportunity is unchanged and that the company still has a clear path forward.

The discussion highlighted that operating costs rose by about SEK 6 million from Q1 to Q2 on an OpEx basis excluding CIPN and other adjustments, driven by larger exhibitions, travel, R&D, legal and patent costs, plus commercialization activity. Management said some of those items are one-offs, while others are investments tied to future growth and the new building. On cash flow, Paxman said improved sales increased the debtor book and that building-related outflows were meaningful, but he pointed to a SEK 5 million movement in available cash and said the company remains comfortable with its cash position. Capital allocation commentary centered on continued investment in the new building, operational excellence, reimbursement capability, and the neuropathy regulatory pathway.

Analysts asked whether the strong IBBM growth is repeatable, and management said the quarter-over-quarter growth rate should not be expected to continue at 110%, though the trend should improve as more of the 80 U.S. systems in the order book come online. Questions also focused on the cost increase and CIPN timing; management said the higher costs were largely exhibition, R&D, legal and patent spending, and that the De Novo path slows the U.S. rollout but does not materially change the planned build program of 150 units. On the FDA risk, Paxman said additional questions are likely, but the company believes its safety data, including a SWOG report with over 600 patients and no adverse events, should support the filing; if needed, Dana-Farber interim data could help. There were also questions about California legislation and European rollout, with management saying it is already active with advocacy groups and major cancer centers and is aiming to launch neuropathy into Germany, France, Spain and the Netherlands.