Total revenue was SEK79.1m, +2% y/y but 16% below our estimates of SEK94.2m. Automotive was in line with our estimates, with license revenue increasing more than 100% y/y. The main deviation results from Behavioral Research revenue decreasing 13% y/y, coming in at SEK47m for the quarter, which was 24% below our estimate of SEK61m. EBITDA-CAPEX was SEK-43m, roughly in line with our estimated SEK-42m. We see the good underlying growth in license revenue as well as indications of a production ramp-up within AIS and ramp-up from an American OEM as signals of Automotive getting back to sequential growth in Q4.

As the cash level stood at SEK45.5m and SEK277.8m, including all announced credit facilities, we see this as sufficient to reach break even. We estimate that Smart Eye will break even by Q4 2025, and to convert all of its credit facilities into cash along the way. In Q4 2025, we expect Smart Eye to have SEK139m in cash, and SEK232m in debt on its balance sheet, a net debt position of SEK93m.

We are lowering both our sales and EBITDA-CAPEX estimates and postponing our estimated cash flow break even from Q2 2025e to Q4 2025e on the back of the adjusted market outlook for DMS. We see the revised market update as a postponement of previous indications rather than a loss of market potential. Our fair value range is adjusted to SEK45-175 (45-190), with a Base Case of SEK120 (140).