News Tag: Q3

Summary of financial development

• Total net revenue for the quarter amounted to 1,102 TSEK (2,031) and consisted entirely of recurring license revenues, with no hardware sales during the period. This stands in clear contrast to the same quarter last year, when revenues were largely derived from hardware sales. The development demonstrates that iZafe has now successfully established a scalable and stable business model based on recurring revenues. At the beginning of the fourth quarter, the company’s ARR amounted to approximately 7 MSEK — a fourfold increase since the start of the year — and the company remains well on track to reach 10 MSEK in ARR during Q4, which will be reflected in the next period. According to the purchase price allocation, the acquired company had net revenue of approximately 1 MSEK that was not consolidated in Q3 but will contribute to revenues in future reports.
• Operating result (EBIT) for the quarter amounted to -3,273 TSEK (-4,148).
• Earnings before depreciation and amortization (EBITDA) for the quarter amounted to -2,297 TSEK (-3,166), representing a clear improvement despite lower net sales compared with the same period last year. The improvement reflects a more efficient cost structure and a strengthened focus on profitable growth.
• Result after financial items for the quarter amounted to -3,537 TSEK (-4,955).
• Cash flow from operating activities for the quarter amounted to -2,890 TSEK (-2,913).
• Earnings per share for the quarter before/after dilution amounted to -0.01 SEK (-0.02).
• Equity per share at the end of the period amounted to 0.05 SEK (0.06).
• The equity ratio at the end of the period was 41.0% (58.0%).

Significant events during the quarter

• iZafe Group AB has acquired its exclusive distributor in the Netherlands, Thuisapparatuur Nederland B.V., which now becomes a wholly owned subsidiary under the name Dosell B.V. The acquisition strengthens growth, margins, and cash flow and is carried out without any dilution for shareholders. Through this transaction, iZafe estimates that the target of reaching an ARR of 10 MSEK can be achieved already in Q4 2025, earlier than planned, while the company now receives the full revenue from the sale of Dosell in the Dutch market — Europe’s largest and fastest-growing market for digital medication management.
• iZafe Group AB has signed an agreement with AddSecure Smart Care Oy for the distribution of the medication-dispensing robot Dosell in Finland. The partnership provides iZafe with access to a well-established player in the welfare technology sector and marks a strategic step in the company’s international expansion, aiming to meet the growing demand for safe and efficient medication management in the home.
• iZafe Group AB has launched an exclusive shareholder offer in which private individuals holding shares valued at a minimum of 50,000 SEK are offered a complimentary Dosell unit with a subscription. The initiative aims to reward shareholder loyalty and provide more people with the opportunity to experience the benefits of the company’s solution for safe and reliable medication

Significant events after the end of the quarter

• iZafe Group AB announces that the company’s board members have jointly acquired 156,000 Class B shares at an average price of approximately 0.55 SEK per share. The acquisition underscores the board’s shared commitment and strong confidence in the company’s strategy and future growth.

CEO’s comment
We enter the final quarter of the year with strong momentum, rapid growth, and a business model now fully built on recurring revenues. Revenue now consists entirely of subscription income, providing stability, predictability, and scalability as the number of active Dosell units continues to increase.

At the start of the year, our Annual Recurring Revenue (ARR) was approximately 1.7 MSEK. At the beginning of the fourth quarter, ARR had reached around 7 MSEK — a fourfold increase in less than nine months. The growth rate continues to accelerate month by month, and we expect ARR to increase by at least 1 MSEK per month for the remainder of the year. The recently completed acquisition in the Netherlands further strengthens this development, with the acquired company having net revenue of approximately 1 MSEK that was not consolidated in Q3 but will contribute to revenues in upcoming reports. This clearly demonstrates that our strategy is working, that the market is growing rapidly, and that we offer a solution that truly makes a difference.

Sweden – a growing customer base and strong pipeline
During the autumn, demand for Dosell has increased significantly, and we are now experiencing strong momentum in the Swedish market. Several municipalities that conducted pilot projects earlier in the year have transitioned to full-scale operations, while an increasing number of municipalities are initiating Dosell as part of their regular medication management routines.

To meet the growing interest, we have strengthened our team with an additional sales representative focused on following up on incoming inquiries, developing leads, and driving sales to new municipalities. We currently have several municipalities ready to start pilot projects with Dosell, and additional quotations have already been submitted to enable procurement once the upcoming ADDA tender becomes active. This tender, with a new submission date of November 10, is a strategically important milestone with the potential to reshape the digital medication management market in Sweden – and Dosell is well positioned to take a leading role in this transformation.

We continue to sell both directly and through our partners, allowing us to reach more customers faster and further broaden our customer base. The combination of strong incoming demand, proven results from existing installations, and close collaboration with partners provides a solid foundation for continued growth.

The Netherlands – a strategic acquisition that strengthens the group
During the quarter, we completed the acquisition of our former distributor in the Netherlands, which now operates under the name Dosell B.V. The acquisition was a natural and strategically important milestone – both to strengthen profitability and to deepen our connection to the market. The Dutch team has quickly integrated into our organization and is already contributing to continued growth, improved margins, and stronger cash flows.

With this step, we have taken control of one of our most successful markets and laid the foundation for further expansion in the Benelux region. The combination of local engagement and centralized management allows us to grow faster, more efficiently, and with higher quality.

Focus on Dosell – while Pilloxa is ready to scale
Throughout the year, we have chosen to focus entirely on ensuring Dosell’s success. It has proven to be the right decision – the product has now been established as a leading solution for safe medication management, and we are seeing the results in the form of growing revenues and strong confidence from both partners and customers.

At the same time, there is significant potential in Pilloxa, our regulatory-approved platform for digital patient support programs. Pilloxa already has active customers and collaborations within the pharmaceutical industry, and we see great opportunities to further develop this business area in 2026. With the financial strength generated by Dosell’s growth, we will be able to dedicate more time and resources to scaling Pilloxa going forward.

While Dosell provides safety and reliability in the home, Pilloxa enables digital patient support and data-driven follow-up — together addressing the entire healthcare chain.

Looking Ahead – Strong Growth and Increasing Cash Flows
We stand stronger than ever. Our growth is now entirely driven by recurring revenues, our business model is proven to be scalable, and we have established a solid foundation across multiple markets. Going forward, our focus is on continuing to grow rapidly yet profitably, building cash flow, and ensuring that iZafe secures a leading position in Europe for digital medication management.

Our improved cost structure and growing share of recurring revenues provide us with a solid foundation to continue expanding in a controlled and sustainable way. By maintaining a focus on profitable growth and efficient resource utilization, we can continue investing in our key markets while creating long-term value for our shareholders.

Strategic Partnerships for European Expansion
Earlier this year, we signed a Letter of Intent with the German company JDM Innovation GmbH, part of the PHOENIX group – Europe’s leading player in pharmaceutical distribution and pharmacy operations. The aim of the collaboration is to integrate our medication dispenser Dosell with JDM’s Smila into a shared platform for home medication management.

The dialogue around this partnership is ongoing and remains highly relevant. With PHOENIX group’s presence in 29 European countries, there is a strong foundation for future expansion. We see great opportunities in combining our technology with their logistics and distribution network, which could accelerate the rollout of Dosell in new markets across Europe.

Expansion on Multiple Fronts
In parallel with our strong development in Sweden and the Netherlands, we continue to strengthen our position in other European markets together with our partners. In Finland, we are working closely with AddSecure Smart Care to promote the adoption of digital medication management within healthcare and social care, while our collaboration with Ti Medi in Spain focuses on broadening our market presence and making Dosell available to consumers.

At the same time, several dialogues and proposal processes are underway to establish Dosell in additional European countries, where we are seeing rapidly growing interest in secure, connected, and scalable solutions for medication management at home. This demand confirms that we are in the right place at the right time – and that our technology addresses a genuine need in both public and private healthcare.

We are now in a position where growth is accelerating on all fronts. With a strong product portfolio, a proven business model, strategic partnerships, and a dedicated team, we enter 2026 with full focus on delivering on our goals and solidifying our position as the leading provider of digital medication management in Europe.

I would like to extend my sincere thanks to our entire team, our partners, and our shareholders for your commitment and trust. Together, we are building the future of medication management – and we are only at the beginning of the journey.

Anders Segerström
Chief Executive Officer, iZafe Group

Financial Performance in Summary

• Total revenue for the quarter amounted to 2,434 (927) TSEK, an organic growth approximately 2.5 times higher than the corresponding quarter of the previous year.

• The operating result (EBIT) for the quarter amounted to -4,148 (-5,012) TSEK.

• The operating profit before depreciation (EBITDA) for the quarter amounted to -3,166 (-3,159) TSEK.

• The result after financial items for the quarter amounted to -4,955 (-5,004) TSEK.

• The period’s cash flow from operating activities amounted to -2,913 (-2,854) TSEK.

• Earnings per share for the quarter before / after dilution amounted to -0.02 (-0.02) SEK.

• Equity per share at the end of the period amounted to 0.1 (0.2) SEK.

• The solidity at the end of the period amounted to 58.0 (82.9) percent.

Significant events during the quarter

• iZafe Group AB received an order for 500 Dosell units from its partner Ti Medi. This order is part of Ti Medi’s launch of a new concept, where Dosell is integrated with their dose-packaging machines to offer pharmacies a complete solution that improves patient medication adherence.

• iZafe Group AB entered into a loan agreement for 5.5 MSEK with Exelity AB, which replaces the previous TO14B series warrants that were canceled due to high costs and uncertainty. The loan will be used to increase production volumes and intensify sales and marketing efforts, supporting the company’s long-term growth strategy.

• iZafe Group AB has entered a three-party collaboration with Zafe Care Systems AB and Sensorem AB. The partnership combines Dosell with Sensorem’s safety alarms to enhance independence and safety in medication management, even outside the home, strengthening both freedom and quality of care in the healthcare sector.

• iZafe Group AB has entered a partnership with Randstad in Norway to streamline the implementation of Dosell in Norwegian municipalities. Through Randstad’s presence and expertise in staffing, sustainable implementation and improved medication management are ensured, potentially leading to cost savings in healthcare.

Significant events after the end of the quarter

• iZafe Group AB launched Dosell in Spain in collaboration with Ti Medi. At an event in Granada, Dosell was presented to Ti Medi’s network of 1,400 pharmacies. This launch marks an important milestone and signifies that Dosell is now commercially available in Spain, with the first units to be in use shortly. The collaboration aims to improve medication management and adherence among patients.

Comments from CEO
It is with great pleasure that I can state that we are in a very exciting and expansive phase. Our growth journey has truly gained momentum, and we are seeing clear results from our efforts to revolutionize healthcare through innovation and digitalization. The number of active units has increased by 29% compared to the previous quarter, and we have now delivered approximately 2,000 Dosell units to our partners. Our mission to digitalize healthcare and ensure the right medicine at the right time is starting to take shape in earnest.
 
Spain – A New Market with Great Potential
Earlier this year, we received an order for 500 Dosell units from our partner Ti Medi, and I am proud to announce that Ti Medi has now launched our innovative solution in the Spanish market. Together with Ti Medi and their 1,400 pharmacies, we are offering a unique solution that combines their dose-packaging machines with our medication robot, Dosell. This is a groundbreaking offering that will change how pharmacists monitor patient medication adherence, leading to better healthcare. This launch is our first major venture outside Sweden targeting the consumer market, and next year, we look forward to extending this offering to the healthcare sector as well.
 
New Phase – Clearer Forecasts and Increased Insight into Growth Potential
We are now entering a new and very important phase for iZafe Group. For the first time, we can forecast our growth based on actual key metrics, showing how the number of active Dosell units increases each month. This means that, starting from the next quarterly report, we will be able to present clear and credible forecasts that give you, our existing shareholders, and potential new investors, an even better understanding of the company’s future potential. This is an important milestone for us and something that will further strengthen our position moving forward.
 
More Markets and Continued Growth
Our expansion is not limited to Spain. We have seen strong demand from both Swedish municipalities and our international markets. The Netherlands and Sweden have continued to deliver steady growth, and we expect Norway and Finland to follow suit during the final quarter. Our business model is based on active units with recurring revenue, and we are working diligently to ensure that we can meet increasing demand and create steady growth month by month.
 
At the same time, our total revenue has tripled compared to the first three quarters of last year, further confirming the positive development.
 
Strategic Partnerships and Innovation
We have also taken an important step forward with our strategic three-party collaboration with Zafe Care Systems and Sensorem. Together, we offer a holistic solution for increased independence and security in medical care. Through the integration of Sensorem’s safety alarms with Dosell, we can ensure that users are reminded to take their medicine even when they are far from home, creating a safer daily life for those who rely on continuous medication. This is a strong symbol of our vision to create solutions that not only streamline healthcare but also give users greater freedom and security in their everyday lives.
 
Opportunities for the Future
We now look forward to further strengthening our presence, with more Dosell units being implemented in municipalities and healthcare institutions across Europe. Particularly exciting is our expansion in Norway, where we have entered into a partnership with Randstad to ensure an efficient and successful implementation of our solutions. We are confident that this partnership will help us ensure high quality in the transformation process and that our solutions reach as many users as possible.
 
Thanks to increased sales, strong partnerships, and innovative solutions, we are now facing a bright future with continued growth and opportunities. I would like to extend my heartfelt thanks to all our employees, partners, and shareholders for your commitment and support – together, we are making a real difference.
 
Thank you for being part of our journey.

Anders Segerström
Chief Executive Officer, iZafe Group

Financial Highlights Summary

• Net sales for the quarter amounted to 512 (75) TSEK, a growth of 583% compared to the same quarter the previous year. The increase in sales can be attributed to both organic growth and growth through acquisitions, as Pilloxa was acquired in December 2022. Excluding revenue from the acquired company, the growth amounted to 317%. The quarter's revenue consists of income related to the sale of the digital medication robot Dosell and sales of the medical device Pilloxa. Pilloxa AB was acquired on November 28, 2022, and therefore is not included in the quarter's revenue for the previous year.
• Operating profit for the quarter amounted to -5,012 (-5,680) TSEK.
• Profit after financial items for the quarter amounted to -5,004 (-5,751) TSEK.
• The cash flow for the period amounted to -3,192 (-4,513) TSEK.
• Earnings per share for the quarter before/after dilution amounted to 0.02 (-0.08) SEK.
• Equity per share at the end of the period amounted to 0.2 (0.3) SEK.
• The solvency ratio at the end of the period was 82.9 (75.2) percent.

Key Events During the Quarter

• iZafe successfully completed the implementation of Dosell in Spain. Several adjustments and tests have been conducted to ensure a successful pilot that has commenced.
• iZafe introduced its new visual identity and expression during the quarter, aligning better with the company's current position and direction. In connection with this, the new website was launched, available in both Swedish and English.
• iZafe carried out all necessary technical integrations and adjustments to launch Dosell in the Dutch market. Consequently, the first delivery could take place as part of the 1,000 units communicated to be delivered to the Dutch partner IVE Ventures in 2023.

Key Events After the End of the Quarter

• iZafe, together with Atea Sverige AB, was awarded a contract in the procurement with the Västra Götaland Region for the provision of Dosell. The procurement covers between 1,800 and 2,250 units with an estimated value of 42–52 MSEK. The contract period is two years with the possibility of an additional two-year extension.

CEO's Comment
We look back on a quarter where our business plan and strategy have yielded results in both growth and successful major procurement, marking a significant milestone. An increase in net revenue by a staggering 583 percent compared to the same quarter the previous year, even considering a lower revenue base, is a clear indication of the positive trend we have established. This is the outcome of our dedication to refining our business model while maintaining a cost-effective structure.

Despite increased revenue, we have preserved our modest size, underscoring our determination to optimize every investment and talent within our team. This has been and will continue to be a central component of our ambition to avoid additional external capital and to maintain a cash flow that is both stable and proportionate to our growing income.

On the international stage, we have achieved significant progress, especially in Holland, where the implementation of the first 100 units of our product has been met with enthusiastic reception. It is a strong testament to the quality of our product and the customer journey our partner has crafted. This success is crucial as it forms the cornerstone of our ability to deliver at scale.

In Sweden, we have taken a significant step forward by winning a comprehensive procurement with the Västra Götaland Region, covering 47 municipalities. We are preparing to sign the contract in the coming days, a step that confirms our company’s growing influence and trust within the sector.

It is particularly heartening to see increasing interest from municipalities seeking effective and user-friendly alternatives to the more complicated and costly solutions they have used in the past. Our offering, Dosell, is at the forefront of this demand, and we are enthusiastic about more and more people recognizing its value.

With a plan for larger deliveries in both the Swedish and Dutch markets and expectations of other regions increasing their demand in the coming year, we stand on the threshold of a period of expansion. These prospects reinforce our focus on providing our partners and customers with unparalleled service and support.

Regarding Pilloxa, successfully integrated into our group over the past year, I am pleased to report significant progress. Our ongoing collaboration with the German pharmaceutical company Chiesi has paid off, with their team expressing deep satisfaction with our solution. Their positive view of our technology and its potential to change the lives of patients with rare diseases is a powerful affirmation of our work. Together, we strive to expand Pilloxa’s applications, aiming to broaden our impact across a wider spectrum of diseases and geographic markets.

Interest in both our service and the innovative pillbox is overwhelming, and we have received numerous inquiries that we are eager to address. We are carefully planning the next steps, with continuous improvements and adjustments to refine our service before launching it on a full scale. This work aligns with our overarching vision to contribute to a healthier future with the right medication at the right time, every time. It is with great satisfaction that I see Pilloxa’s offering not only complement but also reinforce our core vision of improving patients’ health and quality of life.

We close the year 2023 with strong and growing demand for our product, as well as a firm belief that our strategic direction and operational excellence will continue to bear fruit. I want to express my deepest gratitude to our board and employees for their tireless work and to our shareholders for their unwavering trust and support.

Thank you for being part of this exciting journey.

Anders Segerström
Chief Executive Officer, iZafe Group