Hemnet Group AB

to 50.5 thousand. After a more active start of the year, listing volumes declined in the second quarter, reflecting a softer market driven by macroeconomic uncertainty and tougher comparables, as last year's interest rate cuts in May and June drove an accelerated listing activity. The market also shifted into a slower pace earlier than usual ahead of the summer this year, as both sellers and agents appear to be more hesitant to list properties due to the record high supply and long selling times. Now turning to page six to look a bit more on how the market characteristics impact our business. I wanted to take this opportunity to provide a bit more color on the difficult situation the Swedish property market is currently in. As you can see on the graph, we're currently experiencing an all-time high supply of listings paired with very long listings time. This makes for a difficult situation for all our stakeholders and especially the real estate agents. As on-sale listing supply has grown, so has the so-called pre-market that is suffering from the same dynamics. A large share of the so-called pre-market supply is old supply and does not move. Based on our analysis, we see that roughly 50% of the pre-market inventory is older than 180 days. And close to 70% of the so-called pre-market is older than 60 days. Given that very few transactions actually take place in the pre-market, This part of the market adds additional friction to an already difficult property market. This is especially true for buyers that need to navigate a large number of properties that are not actually for sale and for agents that are spending a significant part of their time on properties that are not for sale. Going forward, Hemnet will continue to focus on making the property journey as simple and as smooth as possible by increasing transparency, efficiency and mobility in the property market. Now let's move on to page number seven for a look at the most recent market share data. Hemnet continues to be the leading choice for Swedish home sellers. Based on actual data from SCB, the statistic bureau in Sweden, 89% of all property sales in 2024 were advertised on Hemnet. This data point is not only important because it confirms our strength as a platform, but because we know the value it creates for everyone who buys and sells a home to be able to meet in one place. It is precisely the combination of our significant reach and the broad up-to-date housing supply that makes it possible. When more people see your home, the chances of getting the best possible final price increases, while you get the security that the deal is done on a fair market value. The 2024 numbers are in line with Hemnet's share for the past six years, implying that Hemnet continues to be the go-to place for property buyers and sellers in Sweden. Now let's continue on this track and turn to page eight for some additional market data. During April and May, Kantar Media, a leading well-established media research and data analytics company in Sweden, conducted a large survey where more than 1,500 people were asked which property platform they would use if they were to buy and sell a property in Sweden today. As you can see here on the slide, roughly 83% of buyers 87% of sellers stated that Hemnet would be the first choice today. Hemnet was also considered by far the most user-friendly platform. This market data, together with the 2024 data from SCB, further strengthened us in our view that we are by far the number one property portal in Sweden. Now let's move on to product news and we'll start with Hemnet Max on page number nine. So as you know, we launched Hemnet Max on 1st April this year, which means that the product has now been live for roughly a quarter. Hemnet Max includes a number of features that makes it stand out compared to our other offerings, including top search placement, larger share of voice, exposure on Hemnet's landing page, and targeted email sendouts for prospective buyers. The initial data from Hemnet Max listings are showing very impressive results. Comparing Hemnet Max listing to Hemnet Premium listings in Stockholm during April and May, we see that Max listings generated more listing visits, higher bidding premiums, and more saved searches. This clearly shows the strong value that the product creates for sellers and agents. Hemnet Max penetration remains at low levels, but we have seen a positive impact from Hemnet Max on our ARPL, driven by the underlying mix effects. Going forward, we will continue to work with the Hemnet Max product, and we look forward to it being an important growth driver for Hemnet in the coming quarters and years. Let's move on to slide 10 to go through a bit more about the investments that we made into our product proposition. In addition to launching Hemnet Max in the quarter, our teams have worked on a number of exciting features to further enhance the user experience and value for our users. The new features that are either already live or soon to be released includes a personalized discovery feed for logged in users, curated listing collections, enhanced social sharing, and real-time push notifications for saved searches. A lot of these features have been highly sought after by our users, and we're very happy to put them in place. And with that, I will hand over to Anders for a financial update, starting with page 11. Anders, please take the stage.

Thank you, Jonas. And let's turn to page 12 from the financial summary. Let me begin with an overview of the second quarter of 2025. Net sales for the quarter amounted to 484 million, reflecting a 90% year-on-year increase. This growth was mainly driven by the 35% increase in ARPL. The ARPL growth, again, was supported by the continued strong demand for our value-added services for sellers, including Hemnet Plus, Premium, and the newly launched Hemnet Max. Although published listings volumes decreased by 9% compared to the same period last year, we were able to more than offset this by the higher monetization per listing. This underlines the value our platform delivers to home sellers also in a more challenging housing market. Another noteworthy point is the average listing time on a rolling 12-month basis increased from 42 days in Q2 2024 to 47 days in Q1 2025 and now 48 days in Q2 2025. The year-on-year effect of the increased listing time is positive 2 million in the revenue. The sequential effect of the one additional day from Q1 to Q2 is negative 2 million in revenue for the quarter. It's important to keep in mind that as the average listing days increase, the impact of the revenue shifting between quarters becomes more pronounced. Therefore, if there is a positive effect in Q2, all else equal, we should expect a corresponding negative effect in Q3, since June is typically a lower volume month while September is higher. To smooth out seasonality effects, we recommend tracking ARPU growth on a rolling 12-month basis, as shown in this presentation. Turning to profitability, EBITDA came in at 261 million, representing a 21% increase year over year. We will explore the EBITDA development in more detail later on. The EBITDA margin improved to 54%, up 0.6 percentage points from Q2 last year, driven by the strong top-line growth and operating leverage. Additionally, while commissions and compensation to real estate agents increased in absolute terms, they declined as a percentage of property seller revenue in the second quarter. So even as we continue to see higher recommendation rates and improved loss conversion, the effective commission rate decreased from 30.7% in Q2 to 30.1% in Q2 2025, partly explained by the fixed admin fee of 600 Swedish krona. We continue to uphold a strong financial position. Leverage ended the quarter at 0.6%. down slightly from 0.7 in Q2 last year. Free cash flow over the past 12 months reached 775 million, a 34% increase, underscoring both the scalability of the business model and our strong cash generation capabilities. The reduction in leverage is particularly encouraging given our continued active execution of the capital allocation strategy. Notably, our share buyback program was expanded from 450 million to 600 following the mandate approved at this year's AGM. At first glance, the headcount increase of 13 may stand out. However, it's important to consider a technical nuance that helps explain the employee numbers in relation to the personnel costs. For example, there were a higher number of employees on parental leave during Q2 2025 compared to the same period in 2024. In addition, several new hires join mid-quarter, meaning the full cost impact will be more visible later this year. Beyond the replacement hiring across the organization, there has also been a modest expansion within product and tech departments. With that overview, let's turn to other revenues by segment to take a closer look at the Q2 figures. Now moving into slide 13, which breaks down the revenues. Main driver, of course, once again, the B2C segment. On the B2B side, the picture is more mixed. Revenue from real estate agents grew by 4% and property developers contributed 13 million, up 7% year on year. These increases reflect continued engagement from property developers and a modest rebound in new development listings. However, advertising revenues from other advertisers declined by 10% to 16 million, reflecting a weaker display advertising market. This is driven by broader macroeconomic pressures as advertising budgets shrink across the market. But overall, an uplift in the B2B segment versus Q1, which is positive, of course. And again, the strong momentum in our salary revenues more than compensated for these headwinds, allowing us to continue delivering strong growth overall. With that, let's move to the EBITDA bridge to dive deeper into the Q2 figures. We have already covered what has driven the top line, so let's go through the costs. On slide 14, we show the year-on-year development of EBITDA. Aged compensation increased in absolute terms, but grew less than salary revenue, meaning the commission rate declined somewhat, which positively contributed to the margin expansion. Looking at other costs, expenses were higher than last year, driven by increased marketing spend, some investments around the launch of Hamlet Max, of course, but more importantly, external brand building activities in Q2, in the second quarter, and increased tactical digital marketing. Personal expenses increased due to wage inflation and the larger headcount. However, some timing effects, again, relating to the new hires has a dampening effect on the total personal cost this quarter. And the other cost category remained flat. Overall, our strong revenue growth combined with disciplined cost control allowed us to expand both EBITDA in absolute terms and our margin once again demonstrating the leverage in our business model. In total, this adds up to the absolute EBITDA growth of 45 million. Moving on to page 15 and some spotlight on the cash flow. Starting on the left-hand side, our rolling 12-month free cash flow continues to trend upward and reach 775 million. Cash conversion remains high, supporting both reinvestments and capital returns to shareholders. In the middle, you'll see the development of the share buybacks. During the second quarter, we repurchased shares worth approximately 140 million. This is part of the 600 million mandate approved in May and reflects our commitment to deliver shareholder value. And finally, on the right, our net debt stood at 445 million, corresponding to 0.6, well below our target. This stable capital structure gives us flexibility to continue executing on our priorities while maintaining attractive returns. So a summary from me, we delivered a strong second quarter with top line growth, margin expansion, and continued robust cash generation, all while investing in our long-term growth and returning capital to shareholders. With that, I want to hand over to Jonas for a summary on page 16.

Thank you, Anders. And let's move on to the summary on slide 16. And to summarize today's session and the second quarter of 2025, We delivered a strong and solid financial performance in Q2 with continued revenue growth and margin expansion despite the softer property market and lower listing volumes. We confirm and cement our number one position in the market. Nine out of 10 properties sold in 2024 and Hemnet is a fantastic position. We're excited about the future with Hemnet Max and the product has been showing strong value proposition and product performance in its early days. We have conducted targeted investments in our product development and marketing during the quarter, further strengthening our position. And we will continue to build on this with focus to deliver even more value to agents, sellers, and buyers. With that, that was all from a presentation perspective. So we'll open up for Q&A.