Tobii AB (publ)

Net sales were SEK 154 million versus SEK 284 million a year ago, a reported decline of 46% and an organic decline of 39%; adjusted for prior-year one-offs, underlying revenue growth was 7%. Group gross margin was 82% versus 83% last year. Reported EBIT was SEK 15 million versus SEK 24 million, including a positive noncash remeasurement/reversal of contingent consideration of SEK 49 million to SEK 55 million. Operating cash flow was positive SEK 22 million, capital expenditures were SEK 32 million, free cash flow was negative SEK 10 million, and cash at quarter-end was SEK 37 million. For segments, Products & Solutions posted SEK 76 million of sales and negative SEK 21 million EBIT; Integrations posted SEK 37 million of sales and SEK 0 million EBIT; Autosense posted SEK 40 million of sales and SEK 36 million EBIT. Management did not provide second-half guidance, saying it was not giving guidance for the rest of the year, and reiterated a target of sustainable positive operating cash flow from 2027.

Fadi Pharaon framed the quarter as one with difficult market conditions and an unusually tough comparison, but stressed that Tobii is acting decisively on cost, product priorities, and commercial execution. He highlighted product progress in webcam eye tracking, XR machine learning efficiency, and the first consumer product using Tobii Nexus through Lenovo. His tone was cautious but determined, with repeated emphasis on making Autosense more focused, flexible, and financially sustainable.

Asa Wiren focused on the financial mechanics of the quarter: SEK 154 million net sales, SEK 15 million EBIT, and SEK 10 million negative free cash flow. He said the prior-year comparison was distorted by SEK 70 million Dynavox volume, a SEK 45 million royalty, and SEK 25 million of nonrecurring revenue, while the stronger Swedish krona reduced sales by SEK 4 million. He also noted the cost-savings program cut costs by SEK 43 million in the quarter and SEK 163 million over four quarters versus a SEK 100 million target, but said liquidity is strained, cash was SEK 37 million, SEK 14 million of a SEK 25 million credit facility was utilized, and there is a risk Tobii may not have sufficient financing for the next 12 months.

Analysts pressed for visibility on Autosense revenue now that the prior-year Tier 1 DMS deal is largely finished, and management said the business will revert to normal levels but declined to give per-quarter or per-BU revenue guidance. Questions also focused on the Autosense footprint, why Tobii lost certain RFQs, and the timing and economics of DMS/OMS programs; management said many deals are still in presales, that OEM wins often take years to convert into cash, and that OMS is becoming increasingly required. On the restructuring, Fadi said the SEK 50 million cost reduction would involve discretionary expenses and workforce resizing, and he confirmed a 2023 Korean OEM program did not enter production.