iZafe Group AB [STO:IZAFE], the Stockholm-listed medtech company specialising in digital medication management, has reported a sharp increase in recurring revenues in the second quarter, as the business continued its transition away from hardware sales and scaled up its Dosell medication robot across Europe.
The market has been responding well to the news this morning (Friday), with iZafe shares up more than 8% in early trading in Stockholm.
Total net revenue rose to SEK 1.14m from SEK 168,000 in the same period last year, driven primarily by licence income. Last year’s sales were largely hardware-related, underscoring the group’s shift to a subscription model that offers more predictable revenue.
Operating losses widened modestly to SEK 4.28m compared with SEK 4.01m a year earlier. EBITDA was negative SEK 3.30m, reflecting continued investment in product development and the write-down of obsolete inventory. The pre-tax result was a loss of SEK 4.50m.
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Cash outflow from operations narrowed to SEK 1.72m from SEK 4.16m. Earnings per share were a loss of SEK 0.01, versus a SEK 0.02 loss last year. The equity ratio stood at 50.1 per cent, down from 73.3 per cent, reflecting a more leveraged balance sheet after financing activities.
The company also raised SEK 10m in a directed share issue during the quarter, issuing 43.5m Class B shares at SEK 0.23 each. Proceeds were used to repay a loan and bolster working capital.
Over 1,000 active Dorsell units
During the period, iZafe reached a milestone of more than 1,000 active Dosell units in operation across Europe, marking what management described as proof of scalability for its in-home medication management platform.
The group also signed a letter of intent with JDM Innovation, part of Germany’s Phoenix Group, to integrate Dosell with the Smila dose dispenser. The collaboration aims to create a joint digital platform for municipalities and healthcare providers, widening adoption across Europe.
In addition, a June investor event in Stockholm marked the achievement of the 1,000-unit threshold.
Since the end of June, momentum has strengthened further. Three Swedish municipalities have adopted Dosell, while in the Netherlands partner TCCN is preparing a broadcast service, “Dosell TV,” to support rollout. In Spain, more than 50 pharmacies have joined the Savioo Home initiative, while in Finland, iZafe has signed a new distribution agreement with AddSecure Smart Care.
Chief executive Anders Segerström said the company was entering “a decisive transition – from product development and market cultivation to tangible growth and operational impact.”
Recurring revenues, measured as annualised recurring revenue (ARR), grew by more than 30 per cent versus Q1 and were over 250 per cent higher than a year earlier. Segerström said the base of contracted subscriptions “confirms that our solution is not only gaining ground – it is actively used and perceived as value-creating.”
Strong uptake in Netherlands market
Management reiterated its ambition to reach SEK 10m in ARR by the end of 2025, up from SEK 1.7mn at the end of 2024. Longer term, it forecasts ARR exceeding SEK 85m by 2029, an eightfold increase, supported by geographic expansion and scaling with healthcare partners.
The company highlighted strong uptake in the Netherlands, where active units rose 45 per cent in the quarter, and resilient performance in Sweden, where one municipality dropped a competitor in favour of Dosell. Technical resilience was also tested in July when Dutch network outages disrupted service; WiFi-connected users were unaffected, strengthening the case for multiple connectivity options.
“Entering the autumn, we have a product that works, a business model that scales, and a market showing increased interest,” Segerström said. “Our task now is to convert pilots into large-scale implementations.”
