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Jun 30
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Ericsson Q2 2025 Earnings Report
Ericsson reported improved profitability and returned to strong net income in Q2 2025.
Key Takeaways
Ericsson delivered a solid Q2 2025 with a significant rebound in profitability, driven by cost efficiencies and increased IPR licensing revenues despite a decline in overall sales.
Net income turned positive at SEK 4.6B after a loss last year
Adjusted EBITA margin reached a three-year high at 13.2%
IPR licensing revenues boosted gross margin to 47.5%
Free cash flow decreased due to weaker working capital release compared to last year
Ericsson
Ericsson
Ericsson Revenue by Segment
Ericsson Revenue by Geographic Location
Revenue by Segment
Networks Revenue
CapyFin.comCloud Software & Services Revenue
CapyFin.comEnterprise Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope, ME & Africa Revenue
CapyFin.comSE Asia, Oceania & India Revenue
CapyFin.comNorth East Asia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Ericsson expects stable growth but warns of macroeconomic uncertainty; Networks sales may soften slightly due to high Q2 IPR revenue.
Positive Outlook
- Americas growth expected to continue
- Europe stabilized with modernization projects
- Strong IPR licensing opportunities remain
- AI investments to drive operational efficiency
- Network API ecosystem continues to expand
Challenges Ahead
- Uncertainty in global macroeconomic conditions
- Potential further tariff changes
- Weak investment levels in India may persist
- 5G standalone penetration still limited
- Free cash flow may remain pressured due to working capital
Revenue & Expenses
Visualization of income flow from segment revenue to net income