Karnov Group AB (KAR) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone to Karno Group's earnings conference where we will present the outcome of the second quarter of 2025. Please go to slide two. I'm Pontus Bulusson, President and CEO of the company. With me I have our CFO Magnus Hansson and our Head of Investor Relations Erik Bergen. Magnus and I will present the outcome of the quarter using a few slides and then we'll open up for questions. With that said let's get started with the presentation. Please go to slide three. In Q2, we achieved solid growth with continued AI momentum and improved the margins. Customers are adopting our AI solutions with high satisfaction and usage is increasing steadily. We continue to advance our positions and will enter the market for AI-powered workflow tools this autumn. I'll come back to that later in this presentation. Net sales grew to 649 million SEK in the quarter. The organic growth was 5%, driven by strong online sales in Region North, including customers adopting our AI solutions. The adjusted EBITDA margin improved to 23%, which is an improvement of 2 percentage points compared to Q2 previous year. Leverage was 2.5 times well below our financial target. Please go to slide four. We are pleased with the accelerated organic growth and margins improvement in Q2. The legal market is progressing in the shift to AI supported solutions and our AI assistant is a leading AI solution for legal research in our markets. Our customers become significantly more efficient and customer satisfaction is high. We have a solid momentum and progress with AI sales. In Q2, AI sales was an important component of the accelerated growth in Region North. We are still early in the adoption curve. The accelerated growth and margins improvement in Q2 is driven by Region North. We are decisive in the reshap...