Hemnet Group AB

inflation and the easing of mortgage regulations planned for April 26 could gradually help increase activity. Listing duration, the average time it took for a property to sell on Hemnet during the last 12 months, increased by 18% to 52 days compared to 44 days in Q3 last year. Anders will break down the financial effect of the longer listing duration later on in the presentation. Around 4 percentage points of the volume decline was attributed to a new business rule introduced by 1 February 2025. This new business rule allows sellers to change agents without buying a new listing. It's important to remember that our published listing number follows a specific definition and differs from general market numbers. The negative listing development is challenging, but it's more important to remember that property market can be volatile and we've been through the similar development in the past years. Just look at 2023. Let's move on to the next slide and provide some additional color on the supply situation and how that impacts the current state of the market. We do get a lot of questions of the state of the property market and how new published listings relate to transactions and total supply. Therefore, I wanted to take this opportunity to provide some color on what we are seeing and visualize it in a few graphs to eliminate some misunderstandings. We continue to see a high supply on Hemnet, but the growth rate has started to come down during the past few months. In September in 2025, our supply grew by 2% year on year compared to 22% the same month last year. With that said, we're still at aggregated supply levels on the platform that is 50% higher compared to three years ago. The supply on Hemnet and how it moves is a function of a number of different factors. The supply increases with new listings as new listings are down the last 12 months compared to the previous year that has a negative effect on the supply. The supply decreases with transactions as transactions are up during the same time period that also has a negative effect on the supply. The supply follows the sales duration. As average days on the platform increases, so does total supply. Average listing days on a last 12 months basis in Q3 were 18% higher compared to last year, which obviously has a significant impact. In addition to these fairly straightforward effects, there are other factors like renewals, like relistings and where we are in the new property development cycles that also impacts the overall supply levels. Now, let's look a bit on how this has looked over time on the next slide. The number of new listings have exceeded the number of market transactions on Hamnet since 2022, which has built up a large supply of unsold properties during this time, which is visible on the top graph. As you also can tell clearly from the same graph, that trend has started to reverse during 2025. This is a natural correction after a few years of increasing supply. Looking at the history, we've seen the same similar patterns historically. You can also see from the bottom graph that listings and transactions over time follow the same seasonal patterns, but that the relationship between the two can differ quite a lot in the short term. To summarize, supply coming down from aggregated levels is positive for the property market. Lower supply signals a more healthy market where more transactions are taking place, while it is also supportive for the price development. Now turning to page seven to look at the ARPL development in the third quarter. ARPL grew by 21% in the third quarter. The ARPL growth was mostly driven by a strong demand for our value-added services. The conversion rate to higher-tier packages continued to increase during the quarter, and three out of four sellers on Hemnet now chose either Hemnet Plus Hemnet Premium or Hemnet Max. This highlights the strength of our offering and that our customers see clear value in investing for increased visibility and impact. Our newest package, Hemnet Max, introduced earlier this year, is a natural step for sellers seeking maximum exposure. The product is showing strong performance for seller. So let's look a bit on the performance on Hemnet Max. So please move to slide eight. As mentioned, Hemnet Max continued to show strong product performance while adoption is still at low levels. In Stockholm County, for example, homes advertised with Hemnet Max that were sold between April and August received more than 70% traffic compared to homes advertised with Hemnet Premium. Moreover, the Hamlet Max homes also got more engagement on the listing and on the average generated a much higher bid premium. We have launched a number of key initiatives to drive MAX adoption going forward, including further enhancement of product features and scaling up the marketing of Hemnet MAX towards agents and property sellers. We continue to work with the product and we look forward to it being an important growth driver for Hemnet in the coming quarters and years. Now, turning to page nine for some other exciting news. Today, we are very happy to be able to announce a set of new strategic product initiatives to help sellers and agents to fully leverage Hemnet's potential. Looking at property transactions in Sweden, we have a large opportunity as Hemnet to increase the value of the Hemnet investment for agents and sellers. We know that ensuring visibility throughout the entire home selling journey is an important part of achieving the best possible outcome. For example, data shows that listings visible on Hemnet from the start of the sales process have a higher chance of a successful sale, with homes published as upcoming on Hemnet on average selling five days faster than those listed as directly for sale. To help sellers and agents fully leverage Hemnet's potential, we're announcing two strategic initiatives today. First of all, a new success-based product offering. Since 1st of October, we have had a live pilot where we are testing a new commercial model where sellers pay only when a property is sold. Second to that, we're also announcing new strategic partnership with franchisors and brand owners that want to recommend Hamlet as part throughout the entire sales process. Now let's move to slide 10 to talk a bit more about the ongoing pilot. So we're announcing a new commercial model to further lower the threshold for sellers to list on Hemnet. We launched a pilot test for a new commercial model on 1st of October where sellers pay only when the property is sold. The new model aims to lower the barrier for sellers to advertise on Hemnet from the start and will be a part of our strategic partnerships. And I'll elaborate a bit more on those on the next slide. This is a highly demanded model from both sellers and agents as it becomes risk-free for the seller and easier for the broker to recommend the most suitable package for the client. We share the risk with the seller to maximize the chances of a successful sale. And we do this because we know that Hamlet works. It is still early, but the initial response and the initial feedback and collected data from the pilot has been very supportive and very strong, with sellers showing increased willingness to list on Hemnet with the new model. We plan to roll out the new model as part of the strategic partnerships during 2026. Now, let's move on to slide 11 to elaborate a bit more on the strategic partnerships. The second exciting announcement that we have to make today is our new strategic partnerships. Hemnet will offer all franchisors and brand owners that want to recommend Hemnet as part partner throughout the entire sales process the opportunity to enter into a strategic partnership agreement. The aim of the strategic partnership is to help home sellers and agents to fully realize the value of Hemnet to enhance the chance of a successful property transaction. It is also a way for Hemnet to strengthen the relationship on the HQ level, meaning headquarters. The new commercial model will form a part of this strategic partnership, along with increased visibility, increased brand exposure, increased traffic and increased lead generation and new product features. We very much look forward to being able to speak more about these news and what they will mean for Hemnet and our partners as they are being rolled out over the coming months. Moving on to slide 12 for some additional launches and product news. We continue to accelerate the pace of our product innovation. Within short, we're launching Hemnet Insights, a new AI-powered analytic tool providing agents with valuable market data as part of their Hemnet business subscription. We're confident that this will be a very useful tool, an extremely appreciated tool for agents across the country, and we're excited about the launch. During the quarter, we improved our CRM functionality, which makes it possible for us to strengthen community communication and add more value to both home buyers and home sellers on the platform. Moreover, by the beginning of next year, we will also launch a new enhanced offering for property developers that is better suited to their needs. We have also launched a marketing partnership with Hitta.se, where both our listings and valuation tools are now being integrated. Lastly, our increased marketing investment during the year have begun to show results. We are seeing positive development in key brand metrics with spontaneous brand awareness increasing 11 percentage points year on year in Q3. And according to Orvesto survey data covering May to August 2025, Hemnet remains Sweden's third largest commercial website, reaching close to 2 million unique visitors per week with a slight year-on-year increase of 0.4% compared to last year. This is particularly encouraging given the weaker market conditions. All in all, we continue to accelerate product innovation, invest in marketing and build for the future and its yielding results. With that, I will hand over to Anders for the financial update, starting with page 13. Anders, please take it away.

Thank you, Jonas. Let's turn to page 14 directly in the financial summary. Let me begin with an overview of the third quarter of 2025. Net sales for the third quarter were 367 million, a decrease of 1.5% year over year. This demonstrates strong resilience. We managed to maintain revenues despite published listings dropping by almost 20% in a quarter. It's a testament to our business model holding up across market conditions, much like we saw in the first half of the year 2023, before bouncing back the second half year. Key driver, of course, sustaining revenue was ARPL, growing 21% year over year. This was supported by continued strong demand for our value-added services for home sellers, Hamlet Plus, Premium and Max. This underlines the value our platform delivers to home sellers, also in a challenging housing market. In addition, our B2B segment had a strong quarter with a growth of 1.5. We will discuss the B2B segment in more details on the next slide. Another noteworthy point is the average listing time, which on a rolling 12-month basis increased from 44 days in Q3 2024 to 48 days in Q2 2025, and now 52 days in Q3 2025. The year-on-year effect of a longer listing time is negative 9 million in revenue, and the sequential effect of four additional days from Q2 to Q3 is also 9 million. To smooth out seasonal variations, we recommend tracking ARPA growth on a rolling 12-month basis, as shown on page 4 of the presentation. Turning to profitability, EBITDA came in at 195 million, down 5.9%, development in more detail later on. The EBITDA margin for the quarter was 53.3%, which is 2.5 percentage points lower than the margin in Q3 2024. This declines mainly due to fixed costs that cannot be fully adjusted to offset the 90% drop in listing volumes. One important component in the margin development is compensations to real estate agent. When expressed as a percentage of property seller revenue, this ratio increases quarter on quarter from 30.1% in Q2 to 30.9% in Q3, driven by further improvement in both recommendation rates and actual conversion to value-added products. Looking at the effective commission compared to Q3 2024, it rises from 29.4% to 30.9%. Higher commission reflecting a substantially stronger underlying improvement of our vast products. And as always, the effective commission is a variable component and tends to fluctuate somewhat between quarters, making it more suitable to measure over longer periods. Free cash flow. Last 12 months was 808 million, a 36% increase year over year. This robust cash generation underscores both the scalability of our business model and our strong profitability, even in a very soft housing market. Our operations continue to convert a high portion of revenues into cash, highlighting the quality of the earnings. We continue to uphold a strong financial position. Net debt leverage ended the quarter at 0.5, an improvement from 0.6 last year. This low leverage provides us with flexibility going forward. The reduction is particularly encouraging given our active capital allocation strategy. As you know by now, we expanded our share buyback program from 450 million to 600 million this year following the mandate approved at the AGM. We have been returning capital to shareholders while still maintaining a conservative balance sheet. At first glance, the headcount increase of 13 may appear notable. However, it is important to take into account the technical nuance that helps explain the development. A higher number of employees were on parental leave during Q3 2025 compared with the same period in 2024. In addition, the organization has been selectively strengthened primarily within product and tech. With that overview, let's turn to the revenues by segment to take a closer look at the Q3 figures. Moving into slide 15, which breaks down the revenue by customer group. Since we focused very much on our seller revenue so far, let's turn the attention to our B2B segment, which grew by 1.5, despite the continued challenging and cautious market environment. Revenues from real estate agents increased by 2% to 26 million, and property developers contributed 13 million, up 14% year on year. These gains reflect strong engagement for our prioritized customer segment, and it's particularly encouraging to see both an increase in listings and an uptake in lost products for property developers, leading to a double-digit growth. However, advertising revenues from other advertisers declined by 8% to 16 million, reflecting a softer display advertising market. This was again driven by broader macroeconomic headwinds and lower impressions as a result of reduced listings volumes on the platform. Overall, an uplift for the B2B segment, marking it the strongest quarter this year. With that, let's move to the EBITDA bridge to dive deeper into the Q3 figures. On slide 16, we show the year-on-year development of EBTA. We have already covered what has driven the top line for the quarter, so let's turn to costs. As mentioned, EBTA declined by 5.9% compared to the third quarter of 2024. The agent compensation increased in absolute terms, driven by strong recommendation and conversion levels, despite net sales declining by 1.5%. And again, remember, ARPL grew 21% in the quarter. Looking at costs, expenses were higher than last year, mainly driven by increased marketing investments. We continue to raise our ambition in external brand building activities, and we have also increased tactical digital marketing efforts. In addition, higher pace in product development resulted in higher consulting costs. In total, fixed OPEX excluding personnel costs increased by 9 million. Personal expenses increased somewhat, reflecting wage inflation and larger headcount. However, this quarter we also benefited from a reversal of a bonus provision, which explains why personal costs as a total were slightly lower compared to last year. The other cost category remained fairly stable, although slightly higher capitalized development costs reflect the higher product development activity. Overall, the minus 19 listing effect naturally mirrors our revenue and profit development and puts pressure on the margin. That said, taking a step back, it's encouraging to see the resilience of the underlying earnings capacity. We're not afraid to continue investing in marketing and product development, even though the total cost increase remained relatively modest at around 9%. In total, this adds up to an absolute EBITDA decline of minus 12 million year on year. Moving on to page 17 and some spotlight on the cash flow. Starting on the left hand side, our rolling 12 month free cash flow continued its upward trend and exceeded 800 million. Cash conversion remains strong, supporting both reinvestments in the business and capital returns to shareholders. In the middle, you can see the development of a share buybacks. During the third quarter, we repurchased shares worth approximately 149 million. In volume third, we acquired 560,000 shares, reflecting the lower share price during the period. This is part again of the 600 million mandate approved in May. And finally, on the right hand side, our net debt stood at 427 million, corresponding to 0.5 leverage, well below our target of 2x. In summary, continue to accelerate investments in marketing product development while delivering a strong cash flow. Gives us the flexibility to keep executing on our strategic priorities and maintain attractive shareholder returns. With that, I want to hand over to Jonas for a summary on page 18.

Thank you, Anders. Let's move to the summary slide on slide number 19. To summarize the third quarter and the news that we announced today. First of all, we saw continued pressure on new published listings in Q3. The weak volumes negatively impacted both net sales and EBITDA. Second to that, we had a strong ARPL growth of 21% and we continue to show resilience in a difficult property market. Thirdly, we announced two new strategic product initiatives that will aim to help sellers and agents to fully leverage Hemnet's potential. And I'm extremely excited about the impact this will have on our business in 2026 and onwards. All in all, we continue to act decisively. We're working faster, we're working smarter, and we're working with a continued focus on innovation. By doing so, we're strengthening Hemnet's position for the benefit of buyers, sellers, and agents alike. With that, let's open up for the Q&A.