Shareholder letter January 21, 2026
Dear Valued Shareholders, We are writing to you today to reaffirm our confidence in Sensys Gatso’s strategic direction and our commitment to delivering profitable growth and increasing shareholder value.
Strong Performance and Improved Financial Guidance
In our recent Q3 interim report, we communicated strong overall performance, with order intake, revenue, EBITDA and EBIT all improving year over year. This included significant revenue conversion from our core Swedish and Dutch projects, full recovery from prior negative legislation in Iowa, and margin expansion resulting from economies of scale in Sweden, the first full quarter of maintenance services in Saudi Arabia, and operational efficiencies in the United States managed services business. Order intake for the quarter accelerated to MSEK 331, 86% of which is recurring revenue with a strong mix of contract renewals, existing customer expansions and new customers across Australia and the United States. As a result, we reaffirmed our 2025 revenue guidance (lower end of MSEK 700-800 range) and increased our 2025 EBITDA guidance (from the mid to upper end of 12-14% range). This guidance reflects significant year-over-year profitable growth, and demonstrates strong market demand for our solutions and underlying strength in our business. Our intent is not short-term share price movements, but building a business of sufficient scale, predictability and profitability to attract a broader, long-term investor base over time.
2026 Strategic Focus
As we seek to successfully close out 2025 and carry momentum into the new year, our strategy is laser-focused on three key pillars designed to foster growth, increase efficiency and ensure world class service to our customers:
Strategic Market and Customer Engagement: We are prioritizing expansion in our four core markets: Asia Pacific, Europe, the Middle East, and North America. While we will remain opportunistic in other geographies, the addressable market in each of our core geographies continues to expand with a significant sales pipeline. These core markets allow for faster conversion of sales to revenue and reward the proven quality of Sensys Gatso solutions, a key differentiator for our company. Trends in these core markets also offer opportunities to build upon our robust and stable recurring revenue base of approximately MSEK 100 per quarter.
Advancing Technology and Go-to-Market Strategies: Proactively addressing the market while improving the return on our development investments are key to 2026 success. We are refining our product roadmaps to inform investment decisions and must better leverage our global solutions to allow for greater agility, improved time to market, and increased performance. This includes a significant emphasis on promoting and deploying our market-leading technologies such as our FLUX in-vehicle solution, multi-functional devices and turnkey back office platform Xilium.
- Optimizing Our Organization and Talent: We will continue to foster a performance-based culture across the company and seek efficiency improvements through automation, staff and facilities optimization, and consolidation of our technology stack. At the same time, the recent implementation of the approved 2025 Long Term Incentive Plan rewards and helps to retain key talent while aligning employee and shareholder interests. Increased investment in our sales and marketing capabilities is critical in 2026 to better articulate the compelling Sensys Gatso story and secure wins.
By focusing on our three strategic pillars, we intend to capture our fair share of the growing global road safety market, where our solutions are critical to reducing dangerous driving and saving lives. In doing so, our overarching priority remains profitable growth and cash generation, and we will continuously evaluate how best to allocate capital in a way that strengthens long-term shareholder value.
Our Guiding Principles
A recent example reminds us that while we execute on our three strategic pillars, we must remain true to our guiding principles of Excellence, Focus, Experience, Innovation, Global, and Integrity. In mid-2024, Sensys Gatso announced that it was one of four vendors selected to supply, operate, and support average speed enforcement systems on highways in the Netherlands. As part of the announcement, we noted our expectation that the first system would be commissioned and delivered in the second half of 2025. On 8 December 2025, after successfully passing more than 300 test cases, Sensys Gatso received customer acceptance of our reference system, the first of the four vendors to do so in the exact week noted in our original project plan. In response, our customer shared the following:
From the very beginning, Sensys Gatso has consistently, calmly, and manageably worked towards this point, which they indicated in the initial planning. That deserves a huge compliment. It made the collaboration very pleasant, goal-oriented, and satisfying.
When we provide high quality products and services with commitment, passion and energy, the market and our customers will reward that performance.
Commitment to Communication and Long-Term Value
We understand and share the frustration regarding our current share price and overall valuation, which is well below published analyst guidance. Simply stated, we believe the current share price does not reflect our strong objective performance. While the nature of our business means we cannot entirely eliminate quarter-to-quarter variability caused by factors such as the timing of system sales and contract renewals, political uncertainties, and foreign exchange fluctuations, we remain focused to the greatest extent possible on delivering consistent and reliable results. It is our steadfast belief that this will increase shareholder value over time. We recognize that limited share liquidity amplifies variability today; execution, consistency and communication are the most sustainable remedies. Finally, as evidenced by this letter, we are making a firm commitment to increased market and shareholder communications. Regular, transparent communication on our performance and strategic progress is a key component to bridging the gap between our successful performance and our market valuation.
We thank you for your continued trust and support as we execute our strategy to deliver long-term value.
Claes Ödman, Chairman of the Board
Lewis Miller, CEO
Sensys Gatso Group AB