eEducation Albert AB (publ)

Hello, and welcome to today's presentation, where we have Albert Group presenting the Q3 2025 report. With us presenting, we have the CEO, Fredrik Bengtsson, and CFO, Erik Bergerlin. If you have any questions, please use the form located to the right, and we'll take that up during the Q&A. And with that said, please go ahead with your presentation.

Good morning, and thank you for joining. I am Fredrik Bengtsson, CEO of Albert, and I'm joined today by our CFO, Erik Bergerlin. Together, we will take you through Albert's interim report for the third quarter and first nine months of 2025. After the presentation, we will open up for questions. Over the past six months, Albert has gone through a fundamental transformation. We have restructured, we have reduced costs, and we have refocused on our core strengths. The result is clear. We have stopped bleeding and we have turned profitable. In Q3, Albert delivered its first underlying EBITDA profit of 3 million krona compared to a loss of 8.4 million the same quarter a year ago. That is a swing of more than 11 million krona year on year. Albert started as a pioneer in adaptive learning and has always been about one thing, improving learning outcomes. We have done so by combining smart technology with inspiring content. We have been working with adaptive learning and intelligence-driven pedagogics long before AI became a headline. And we will continue to develop learning platforms that harness the latest technology to enhance the learning experience. Technology is a tool, efficient and individualized learning is the goal. Now we continue our work from a position of profitability and strength. This has been our outspoken ambition and now we have shown that it can be done. Across our platforms, more than 10 million learners have engaged with our content and smart digital learning tools. This scale gives us deep insight into how children learn, and we can make both effective and more enjoyable learning outcomes. Our business units, Albert, operating Albert Junior, a personalized learning experience for families. Albert Junior has a leading consumer position in the Nordics. Sumdog, a trusted classroom platform used in schools across the UK. Swedish Film operating at Granfield Moskola, a stable educational streaming provider in schools across Sweden. One strong bond unites our group. We make learning personalized, curriculum aligned, fun and effective for every child Net revenue reached 40.8 million krona in Q3, a stable performance across both B2B and B2C, despite the divestment of strawberries. Group EBITDA was 18.7 million krona in the quarter, pushing us into positive EBITDA also for the year to date. Or 3 million krona for the quarter adjusted for one of items. This is an important milestone. Albert's group reached profitability in the quarter, also when deducting one-off revenues and costs for the divestment of strawberries. We strengthened our liquidity, adding 27 million krona in cash and removed roughly 1 million krona in monthly losses. With a leaner organization and lower fixed cost base, we now operate from a strong financial position. The global market for digital learning continues to expand, particularly in mathematics where demand is urgent and results are measurable. PISA results show declining performance across Europe, creating a growing need for accessible data-driven solutions. The market is developing and the addressable share is growing as schools across our markets continue to adopt and embrace digital learning. Albert's hybrid model across both home and school segments give us a balance and reach. Albert has its reach roots in mathematics and adaptive learning. This is our stronghold and at the center of the group's offer. With Samdag well established in UK schools and Albert expanding in the Nordics, we operate from a strong platform. While profitability is now established, growth remains modest. Financial discipline has been our primary target since I joined. Our next phase is about disciplined growth, strengthening customer lifetime value through deeper relationships and high retention, improving conversion and engagement through product and pricing optimization, and scaling Sumdog in the UK and sharpening Albert Junior's go-to-market strategy under its new leadership. Here I want to take a moment to welcome those who have recently joined our group and also to thank all our great staff across the offices in Stockholm, Gothenburg, Edinburgh, London, for your energy and dedication through these changes. You are our stars, and what you bring to the group helps hundreds of thousands of lovers across Europe every day. Your mission is important. Your efforts make a difference. Thank you all. Going forward, growth within our group will be driven by evidence and economics. With a strong financial position and a positive EBITDA, we are already in a position to invest in technology, ensuring that Algor Group remains in the forefront of digital learning. Now over to Erik, who will guide you through the financials from the third quarter and first nine months.

Thank you, Fredrik. Yes, the execution in the last six months have been very important to build a healthy business again. Focus has been on reaching the financial goals set by the board last year, positive EBDA run rate in 25 and positive cash flow in 26. These results could of course not have been there without paying tribute to our history. Each of the brands teams have over the history of the group built amazing brands that now are performing, not only on bringing value to our customers, but also our shareholders. I will walk you through the same core financial metrics today as last quarter's report. Net revenue, EBITDA, EBITDA margin, cash flow and cash balance. We will also show adjusted numbers where applicable. Our net revenue in Q3 is 40.8 million SEK and similar to 24. Since net revenue on group level has been a secondary focus to our primary financial goals on EBITDA and cash, there is no surprise to us not to grow our net revenue right now. Once we see our EBITDA and cash improving, there will be funds available to growth initiatives where the ROI is healthy. Looking at EBITDA, where we ended the quarter on 18.7 million SEK, a result largely impacted by the divestment of strong assets, which were a key activity for us to strengthen our liquidity and create a group of brands with a better strategic fit. And of course, a very positive signal is that Q3, adjusted for one of revenues and costs, has an EBTA of 3 million SEK, and it's the first quarter in our history with a positive adjusted EBTA, signaling that we have a healthy core of brands. Similarly, with the EBTA margin, non-adjusted, we see the EBTA margin being plus 46%, impacted by the divestment of Strobe's assets. And removing the one of costs and revenues, we see an adjusted EBITDA margin of 7%. The trend line for the adjusted EBITDA margin is clear. And going forward, we will continue to double down on activities that strengthen both our profitability and our net revenue growth. Similarly to the EBITDA, we now see effects of our decisions and execution on our cash flow. Obviously heavily impacted by the divestment of Strobis assets, we end the quarter with plus 21 million SEK in cash. The Strobis divestment did not only add cash due to the sold assets, but we also removed a loss of 1 to 1.5 million SEK per month from our books. And looking at our cash balance at the end of the quarter, we were at 55 million SEK. The risk of us being insolvent or needing to raise new cash at a low valuation have now been reduced. The decisions we have taken in the last six months have been tough, but imperative to secure going concerns for Albert Group. It feels very good, not only bring value to our customers, but hopefully soon also our shareholders, as well as creating trust among our employees that we have a healthy business. Thank you, Fredrik.