DIGITALIST GROUP’S HALF-YEAR REVIEW, 1 JANUARY–30 JUNE 2025

Core Insights - The Digitalist Group reported improvements in revenue and earnings for the first half of 2025 compared to the same period in 2024, although the pace of improvement was slower than anticipated, and the company is still not profitable [5][10][12]. Financial Performance - Turnover for the second quarter of 2025 was EUR 4.6 million, a 14.0% increase from EUR 4.0 million in the same quarter of 2024 [10][11]. - Total turnover for the first half of 2025 reached EUR 9.0 million, up 14.8% from EUR 7.9 million in the first half of 2024, driven by growth in Finnish and Swedish operations [10][12]. - EBITDA for the second quarter was EUR -0.2 million, an improvement from EUR -0.7 million in the previous year, while EBITDA for the first half was EUR -0.4 million compared to EUR -1.1 million in 2024 [10][14][15]. - Net income for the second quarter was EUR -1.0 million, improved from EUR -1.5 million in the same quarter of 2024, and for the first half, it was EUR -2.0 million compared to EUR -2.6 million in 2024 [10][14][15]. Operational Highlights - The company achieved operating expense savings of approximately EUR 0.3 million in the first half of 2025 compared to the same period last year, indicating a focus on operational efficiency and cost discipline [7][15]. - The Digitalist Private AI Hub was launched under the brand name Stacken.ai, marking the company's entry into applied AI services, with initial assignments already initiated [8]. Market and Client Dynamics - Sweden remains the strongest market for the company, while growth was also observed in Finland despite increased price sensitivity affecting margins across the industry [6]. - The uncertain economic situation continues to impact client decisions and slow down the initiation of new projects, which may affect future revenue growth [12]. Shareholder and Equity Information - The company's shareholders' equity amounted to EUR -39.4 million as of June 30, 2025, with a return on equity (ROE) reported as negative [17]. - The company held a total of 693,430,455 shares at the end of the review period, with a market capitalization of EUR 22,051,088 [26][30]. Future Outlook - The company expects turnover and EBITDA to improve in 2025 compared to 2024, indicating a positive outlook despite ongoing challenges [4].