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Smartoptics Group ASA Delivers Record Q4 2025 Revenue as AI-Driven Demand Accelerates

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Smartoptics Group ASA closed the fourth quarter of 2025 with its strongest financial performance to date, reporting record revenues of USD 23.2 million, up 37.7 percent year on year. The quarter capped what the company itself describes as a phenomenal year, combining rapid top-line growth with improved profitability and clear strategic momentum. Gross margin for the quarter landed at 46.1 percent, slightly below the 49.0 percent recorded in the same period last year, while EBITDA increased to USD 3.6 million compared to USD 2.4 million in Q4 2024, a trade-off that reflects scale, product mix, and accelerating demand rather than any loss of operational discipline.

Demand gathered pace toward the end of the year, and importantly it was not isolated to a single niche. All product areas contributed to growth, with Optical Devices delivering a record quarter of their own. According to CEO Magnus Grenfeldt, the momentum is closely tied to sustained investment across data centers and AI-driven workloads, where bandwidth needs are expanding faster than many operators originally planned for. New orders from major operators, neo-scalers, and Internet Content Providers across EMEA and the United States reinforced Smartoptics’ positioning as a supplier of open, cost-efficient optical networking solutions, particularly for large accounts that are now scaling aggressively rather than experimenting cautiously.

Geographically, the picture was broadly encouraging. The US continued to be a key growth engine, supported by investments from both Communication Service Providers and Internet Content Providers. EMEA showed quarter-on-quarter improvement through the second half of the year, suggesting a healthier investment cycle returning to the region, while APAC activity remained more project-driven and episodic, which is hardly unusual for that market. New customers represented more than 15 percent of invoiced customers during 2025, a detail that quietly matters, while customer retention stayed high, hinting that growth is coming from expansion as much as churn replacement.

Strategically, the numbers align with ambitions Smartoptics laid out earlier in 2025, when it set a target to grow market share two to three times in relevant segments toward 2030, alongside an EBIT margin goal in the 13 to 16 percent range. The long-term backdrop supports that confidence. Bandwidth demand keeps climbing, and AI is acting less like a future catalyst and more like a present-tense accelerator, pushing operators to invest in scalable, high-capacity optical networks across data center, metro, and regional environments. With strong momentum, a solid balance sheet, and a clear sense of direction, management believes the company is well positioned to deliver profitable growth over the coming years, even as competition intensifies.

On the shareholder side, the Board of Directors intends to propose a dividend of NOK 0.60 per share at the Annual General Meeting on May 7, 2026, unchanged from the previous year. It is a steady, almost understated gesture, but one that signals confidence that growth and returns can coexist. Sometimes that quiet consistency says more than a flashy increase ever could.

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