Thinc Collective Q3 – lower activity and improved margin

· Strengthened gross margins.
· EBITDA slightly up on the previous year with clear improvement so far this year.
· Increased number of full-service customers and recurring revenue.

Third quarter July 1–September 30, Group

• Net sales for the period amounted to SEK 59,322 thousand (SEK 68,188 thousand).

• Gross profit (Agency income) amounted to SEK 16,295 thousand (SEK 16,924 thousand), the gross profit margin increased to 27,5% (24,8%).

• Operating profit before depreciation EBITDA amounted to -995 thousand SEK (-1,158 thousand SEK).

• The EBITDA margin for the period amounted to -1,7% (-1,7%).

• Profit after net financial items for the period amounted to SEK -3,322 thousand (SEK -3,076 thousand).

• Net earnings per share after tax amounted to SEK -0,24 (SEK -0,18).

• Cash flow from operating activities amounted to SEK -6,450 thousand (SEK 7,820 thousand).

• Equity as of September 30, 2025 amounted to SEK 49,389 thousand (SEK 49,772 thousand).

• Cash and cash equivalents as of September 30, 2025 amounted to SEK 8,360 thousand (SEK 11,559 thousand).

The period 1 January–30 September, the Group

• Net sales for the period decreased to SEK 209,794 thousand (SEK 221,500 thousand).

• Gross profit (Agency income) increased to SEK 59,186 thousand (SEK 54,738 thousand), gross profit margin increased to 28,2% (24,7%).

• Operating profit before depreciation EBITDA increased to SEK 7,976 thousand (SEK 4,265 thousand).

• The EBITDA margin for the period increased to 3,8% (1,9%).

• Profit after net financial items for the period amounted to SEK 1,879 thousand (-985 thousand).

• Net earnings per share after tax amounted to SEK 0,06 (-SEK 0,06).

• Cash flow from operating activities amounted to SEK -6,450 thousand (SEK 7,820 thousand).

• Equity as of September 30, 2025 amounted to SEK 49,389 thousand (SEK 49,772 thousand).

• Cash and cash equivalents as of September 30, 2025 amounted to SEK 8,360 thousand (SEK 11,559 thousand).

Important events 1 July–30 September 2025

• The City of Stockholm signs a framework agreement with the group company BANG Agency, regarding meeting and event services with a sales value of SEK 130 million during the agreement period.

• Thinc Collective's board of directors presents new financial targets for the period 2025–2029.

• BANG Agency wins framework agreement with FMV with a maximum sales value of SEK 10 million during the agreement period.

Important events after the end of the period

• Coop Norrbotten chooses group company Context Media as its new media agency.

• Hélène Westerholm becomes new CEO of the group company Safir Communication.

Seasonal variations

Sales vary across quarters. Subsidiaries' sales fluctuate throughout the year in line with total media and communications investments in the market, with historically the second and fourth quarters being the strongest periods.

CEO has the floor

• Strengthened gross margins.

• EBITDA slightly up on the previous year with clear improvement so far this year.

• Increased number of full-service customers and recurring revenue.
   

The third quarter results came in as expected: significantly lower than Q2 but better than Q3 last year. This is normal in the industry. We now look forward to a strong Q4, which we usually can deliver.

During the quarter, sales decreased by approximately 13% to SEK 59 million (68), which is mainly due to customer losses on the media agency side. However, it is pleasing that agency revenues are holding up thanks to improved margins, so that agency revenues (gross profit) amounted to SEK 16,3 million (16,9) and EBITDA to SEK -1,0 million (-1,2).

For Q1-Q3 things look significantly better with EBITDA almost doubling to SEK 8,0 million (4,3).

The group's strength, that is, being an internal labor market, having high cross-selling and a whole that, through its many different industries, becomes seasonally independent, is holding up and once again showing its strength.

The Market and the Thinc Collective

The group's greatest growth potential; having customers in its own name, has shifted up and is showing its color.

Customers such as Svenska Mäklarhuset and Tocca Entertainment are new full-service customers to the group as a whole and not to a single group company.

The ability to conclude framework agreements over time, put together teams with all, really all, skills that customers need and make all communication work seamlessly is a strength, and now that we have started to market and sell our comprehensive solutions in earnest, we are delighted that the concept is succeeding, even in a recession.

Technology, packaging and products

We have talked for a long time about comtech, AI and being technology-oriented. Over time, Thinc Collective has more than proven that we can withstand economic fluctuations with our breadth of expertise and different types of customers and industries, but we can now also say that we are clearly entering the often safer and more understandable world of products, fixed packaging and long-term agreements. There we develop our own technology and our own AI solutions and do not risk the same competition from a multitude of players or becoming one of many users of an AI tool.

The Group's share of fixed monthly fees in long-term contracts is thus steadily increasing, as is productization and technological development; may it be Tundrans operation and support agreement, Prodekors products in meeting communication, Websearchs AI development for accessibility or Thinc Collective's own AI to improve websites for AI search engine optimization (AEO). From talking about moving into these areas in 2022, we are now here. Our development is a contributing part to our margin improvement and will be an important component in reaching our margin target of 7%. The first step has been taken, the dam has been broken and we are now a new kind of hybrid.

Reconciliation against financial targets

When reconciling with our financial targets for agency revenue and EBITDA margin, we are well in line with agency revenue growing by approximately 8% during the first nine months of the year or 6% rolling twelve months. EBITDA is well on track to meet the long-term target of 7% during the years 2025–2029. After the first nine months of the year, we have improved EBITDA significantly from 1,9% to 3,8%. We will not reach the EBITDA margin of 7% this year, but I have high hopes that we will continue this improvement in the coming quarters so that we finally reach our target. Our dividend target of at least 30% of profit after tax remains unchanged and it will be clear how large the dividend can be when Q4 is included.

Our immediate future

Thinc Collective currently has a lot of leads, that is, potential new customers. Sometimes the immediate future is nothing more exciting than completing all the meetings with them and keeping our usual profit share or better. I look forward to our continued technology development, our productization journey and to following the development of our young, fine leaders who are undergoing training to ensure regrowth. But most of all, perhaps being able to close the unusually many potential customers we are talking to right now.

Anders Wallqvist, CEO
Gothenburg in November 2025