From transformation to acceleration

The first quarter of our new financial year clearly shows that Integrum continues to develop in the right direction. After a year marked by extensive changes, we now see how our strategic shift is starting to take effect. The number of S1 surgeries continues to grow, revenue is increasing, and we report a positive EBITDA for the quarter.

The development during the quarter shows that our strategic shift is starting to yield clear results. Through an increased commercial focus, a more efficient organization, and a lower cost base, we have created better conditions for both growth and profitability. We have laid the foundation for building a scalable business where continued growth can be converted into long-term sustainable profitability.

We are now seeing how the combination of increased sales, a more focused organization and a lower cost base is beginning to translate into a clear improvement in our financial performance.

More S1 operations drive our growth

A total of 48 S1 surgeries were performed during the quarter, versus 41 in the same period last year — an increase of 17% and one of the highest levels in the history of the company. Net sales increased by 27% to SEK 30.2 million, compared with SEK 23.8 million in the same period last year.

S1 is our most important operational metric. Every S1 surgery performed represents a new patient starting treatment with the OPRA Implant System, and lays the groundwork for revenue in the periods that follow. The continued positive development in S1 volumes, after a strong closing quarter last financial year, is therefore particularly significant.

The performance of the result during the quarter also shows clear improvement. We report a positive EBITDA of SEK 3.8 million, compared to SEK -10.7 million in the corresponding quarter last year, an improvement of SEK 14.5 million. EBITDA was positively affected by SEK 6.2 million from the refund of US customs duties previously paid. Excluding the refund, EBITDA amounted to SEK -2.4 million, which also represents a clear improvement compared to the previous year. At the same time, we are seeing a higher gross margin and a lower cost level. Excluding the customs refund, the gross margin was 82%, compared with 80% last year.

Overall, the development in S1, sales and result shows that the underlying business has strengthened. The combination of higher sales, a more focused organization and the lower cost base we have established over the past year means that continued growth is having an increasingly visible impact on the result. We are not there yet, but the progress shows that we are taking clear steps towards our goal of building a sustainably profitable Integrum.

The commercial platform is in place

Over the past year we have changed the way Integrum works commercially. We have moved from an approach that depended largely on patients finding their way to our clinics, to a model where we actively create demand, identify potential patients and support them all the way through to treatment.

The digital platform we launched in the US in May is now established, and for the first time it allows us to work in a structured, data-driven way across the entire commercial funnel - from digital activity and patient interest through to qualified leads and, ultimately, S1 surgery.

The next phase is therefore less about building the infrastructure and more about getting the maximum return out of it. Our focus is on driving relevant traffic, improving lead quality and, most importantly, raising conversion throughout the patient journey. Following the launches in the US and Ukraine, work is now under way with Germany, where we plan to launch the platform in the beginning of the second quarter.

Stronger commercial organization

We are also continuing to strengthen our commercial organization. The US remains our largest and strategically most important market, and building patient flow to our Centers of Excellence is central to our growth.

At the same time, we see real opportunities in Europe. We are strengthening our presence in the DACH region and working more closely with clinics and partners to increase the number of patients who gain access to the OPRA Implant System.

In Ukraine, we are working towards a more long-term and structured establishment of osseointegration within the country's healthcare system. We have gradually built our local presence and our collaboration with clinics and other relevant partners. Our ambition is to create a lasting structure that can give considerably more patients access to treatment.

Innovation creates the next growth platform

While we accelerate the commercialization of the OPRA Implant System, we are also continuing to develop the next generation of technology for people living with amputation.

Our work in bionics and neural control is of strategic importance to Integrum's long-term development. Through Afyri, we are establishing a clearer structure for advancing this technology and its commercial potential alongside our core business.

This gives us a clear dual focus: accelerating the commercial potential of the OPRA Implant System today, while building the technology that can define the next generation of advanced prosthetic solutions.

We continue as planned

The first quarter confirms that our strategic shift is delivering. S1 volumes are growing, our digital commercial platform is established, our cost base is lower, and we report positive EBITDA for the quarter. After a year of transformation, we have built a stronger and more scalable business, with better conditions for continued growth and improved profitability.

The task now is to keep driving that development with the same focus and high pace. We will reach more patients, improve conversion and drive more S1 surgeries. We have a clear plan, the results confirm it is working, and we are continuing to execute it with our full attention on building a growing and sustainably profitable Integrum.

Martin Hillsten / CEO